Oil activity picks up

Could a recent rise in andamp;lt;a href=andamp;quot;http://www.kxnet.com/t/oilandamp;quot; cla...  More »

Could a recent rise in andamp;lt;a href=andamp;quot;http://www.kxnet.com/t/oilandamp;quot; class=andamp;quot;kxInlineLinkandamp;quot;andamp;gt;oilandamp;lt;/aandamp;gt; prices bring back activity in the andamp;lt;a href=andamp;quot;http://www.kxnet.com/t/bakken-oil-formationandamp;quot; class=andamp;quot;kxInlineLinkandamp;quot;andamp;gt;Bakkenandamp;lt;/aandamp;gt;??? After setting records in 2008 in oil production and revenues... A collapse in oil prices has caused oil production and activity to go from high to low in just months... Last year at this time oil prices were at $120 a barrel and the Bakken was the hot place to drill... But as andamp;lt;a href=andamp;quot;http://www.kxnet.com/t/donnell-preskeyandamp;quot; class=andamp;quot;kxInlineLinkandamp;quot;andamp;gt;Donnell Preskeyandamp;lt;/aandamp;gt; reports activity may be on the rebound... andamp;quot;2008 was a spectacular year... oil production up 73% in 2008 from 2007... But now the question is will the andamp;quot;gold rushandamp;quot; like activity for the andamp;quot;black goldandamp;quot; continue... andamp;lt;a href=andamp;quot;http://www.kxnet.com/t/north-dakotaandamp;quot; class=andamp;quot;kxInlineLinkandamp;quot;andamp;gt;North Dakotaandamp;lt;/aandamp;gt; went from 98 drilling rigs in November to 31 in April... The lowest number in 3 1/2 years... Today 36 rigs are drilling... andamp;quot;We've seen a drastic decline in first four months of 2009 - lost 65% of drilling rigs and I would estimate saw over 1,000 employees laid off. Rising crude oil prices now are a positive for oil activity in ND, it's going to take a higher oil price to make Bakken economic.andamp;quot; For the first time since November oil prices are above $68 a barrel... Just what the industry needs to get the oil patch bustling again... andamp;quot;think people cautious, the amount of capitol it takes to develop the Bakken is incredible. Have to find investment capitol that people are willing to invest in oil industry.andamp;quot; Ness is President of the North Dakota Petroleum Council... He says oil prices need to hold steady around in the $70 range for oil companies to regain confidence... andamp;quot;overall, i think 2009 will be more like 2007 we may or may not ever see another like 2008 in ND again.andamp;quot; While oil companies may not be racing to get rigs up rising oil prices and leases soon to expire still makes the oil in the Bakken a hot commodity... Ness says while the higher oil prices mean you pay more at the pump the oil activity has been very positive for the state. Oil has helped North Dakota's economy prosper, made many residents wealthy, and given our state a lot of national media attention.  « Less