Attendees were standing during the opening ceremony of last week's annual meeting of Basin Electric as Basin director David Meschke of L&O Cooperative sang the National Anthem.
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Burgum Hits on Energy in Debate
Deliver Smalltown Values as President
ND Governor Doug Burgum emphasized the importance of reliable, affordable energy to national security during the sometimes contentious first debate among eight Republicans seeking the US Presidential nomination. In his opening statement at the event in Milwaukee, Burgum talked about growing up in Arthur, ND, a town of 300 people north of Fargo. He said in smalltown America, people look out for their neighbors and hold people accountable for their actions, which he said are values that Washington could use right now. Click here to listen to Burgum's comments. Burgum used another opportunity during the debate to slam Joe Biden's energy policy. He said other candidates on stage were missing the connection between energy, the economy and national security. Burgum said Biden's anti-fossil fuel agenda and his support for wind and solar hurts the US economy and raises the price of energy in the United States, while it helps the economy of China. Click here to listen to Burgum's comments. In his closing statement, Burgum said "I understand why America is hurting, Biden's inflation is choking us." Touting a familiar theme of his tenure as governor, Burgum said improving the economy would happen with innovation, not regulation. Click here to listen to Burgum's comments. Burgum's appearance at the debate was somewhat in doubt after he injured his Achilles tendon during a basketball game with campaign staff. But he remained standing throughout the two-hour debate with the other candidates, and joked about them in his first opportunity to speak. "They were all wishing me well, but I think I took them too literally when they said, 'go to Milwaukee and break a leg.'"
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Summit Seeks PSC Reconsideration
Plan to Reroute Farther North of Bismarck
Summit Carbon Solutions has filed a petition with the ND Public Service Commission asking that it reconsider its denial of Summit's proposed carbon dioxide pipeline. The PSC on August 4 voted unanimously to deny a siting permit for Summit's Midwest Carbon Express CO2 Pipeline Project, indicating that it failed to demonstrate the project would not cause adverse effects on the environment and the citizens of North Dakota. In its petition for reconsideration, Summit said it had identified an alternative route that would move the pipeline farther north of the City of Bismarck. The original route, at its nearest point, was about 4.5 miles north of the city limits of Bismarck and about two miles north of the city's extraterritorial boundary. "It is evident that certain concerns raised in the Order are related, directly or indirectly, to the proposed route of Summit's carbon dioxide pipeline project in Burleigh County, North Dakota," the petition states. "As further detailed herein, Summit has identified an alternative route along the areas to the east and north of the city of Bismarck that avoids existing and planned housing developments." The proposed alternative would move the pipeline route so that at its nearest point it would be five miles north of the city's extra-territorial boundary. Summit's petition also notes that the PSC's denial identified issues about which neither Summit nor intervenors in the case were able to question witnesses. The company is seeking a one-day rehearing to present witness testimony to address concerns cited in the PSC's order denying the pipeline siting permit. In a news release announcing its decision, the Commission said it had received extensive negative public comments during a series of five hearings on the project.
"Those testifying expressed broad concerns regarding eminent domain, safety, the policy of permanent CO2 sequestration and storage, setback distances, irreparable harm to underground drain tile systems, impacts on property values, and the ability to obtain liability insurance due to the project," the PSC wrote. The petition for reconsideration was filed August 18. The PSC has 30 days to consider the request. Click here to read Summit's petition. Click here to read a Bismarck Tribune article about the company's request.
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MISO Grid Withstands Heat Wave
Multiple Max Generation Alerts Issued
Southwest Power Pool Also Put to the Test
The electric grid managed by MISO (Midcontinent Independent System Operator) remained stable this week despite high power demand created by hot and humid weather over much of MISO's 15-state footprint. MISO announced early in the week that it was preparing for near-record electricity demand as the heat wave settled across the central US. MISO issued Maximum Generation Emergency Alerts on three days this week, notifying all local utilities in its operating footprint to prepare every available generation resource to serve the projected load. Heat indices, a "feels like" number that combines temperature and humidity, topped 120°F in parts of Iowa and other Midwest states.
Electric demand exceeded 120 gigawatts Wednesday and Thursday, but preliminary indications are it did not exceed its all-time system peak of 127 GW that was set on July 20, 2011. Throughout the week, the combined generation of natural gas and coal-fired plants was providing more than 80 percent of the electricity as power demand spiked.
“We anticipate challenging operating conditions throughout the entire week, and we will need every available resource at some point,” said Jessica Lucas, MISO’s executive director – system operations. “We have issued several alerts and advisories based on the weather forecast. More emergency procedures may be required to keep the power flowing. That’s typical for a weather event like this.”
MISO issued a Hot Weather Alert, Capacity Advisory and Conservative Operations ahead of the extreme heat. The advisories alert member utilities and neighboring grid operators to expect tight supply conditions and were in effect through Thursday evening. The Southwest Power Pool, which also delivers electricity to parts of North Dakota, issued a Resource Advisory for its entire SPP Balancing Authority footprint in the eastern interconnection through Saturday. The advisory was extended due to high loads forecasted, variable energy resource forecast uncertainty, and the potential for more generator outages. SPP also declared a Conservative Operations Advisory through Friday evening, encouraging power users to reduce unnecessary electric consumption.
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Basin Buildout to Enhance Reliability
Transmission Work Improves Deliverability
Three new electric transmission projects under development by Basin Electric Power Cooperative are expected to improve deliverability and reliability for co-op customers in northwestern North Dakota when complete. Jeremy Severson, Transmission Services Engineer for Basin, discussed the benefits of the projects as part of a panel discussion at last week's annual meeting of the wholesale power cooperative. The projects include a planned Tande-to-Saskatchewan and Wheelock-to-Saskatchewan high voltage line, being planned in coordination with Sask Power, that will add 110 miles of new 230-kilovolt electric transmission lines from existing Basin Electric substations to the Canadian border. Basin is also working on a Leland Olds Station-to-Tande transmission project, which includes 175-miles of 345 kilovolt transmission line and a new 345/115-kV substation, and the Roundup-to-Kummer Ridge 345-kV transmission project, a 35-mile line north of Killdeer. Severson said the projects will provide multiple benefits to Basin's distribution co-op members. Click here to listen to Severson's comments. Severson said the power lines will use a new, stronger type of electrical conductor that should reduce outages during winter storm events. Click here to listen to Severson's comments. The three transmission projects, authorized by Basin's board of directors last year, represent an investment of more than half a billion dollars.
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Sen. Hoeven Tours BNI Center Mine
Federal Lease Approval Allows Expansion
Senator John Hoeven met this week with BNI Coal General Manager Mike Heger and Minnkota Power Cooperative CEO Mac McLennan to discuss and tour the operations of BNI’s new coal lease area at the Center Mine. The operations are able to move forward due to Hoeven’s efforts to secure regulatory approval, which prevented $35 million in costs from being imposed on homeowners and businesses through higher electricity prices. Hoeven advanced the approval of federal mine plans that enable BNI to develop the new leased section, preventing significant cost increases that would have burdened the company’s operations, as well as that of Minnkota's Milton R. Young Station, a 700-megawatt coal-fired power plant that provides baseload electricity in North Dakota and Minnesota.
The new plans were needed to allow mining of federal coal under a lease awarded in January 2021. Last year, Hoeven convened a meeting between Minnkota, BNI and Department of the Interior officials to make the case for timely approval of mine plans. Without approval, BNI and Minnkota would have needed to make costly contingency plans to move the drag line and develop other portions of the mine. Approval not only prevents increased electricity prices across the region, it supports the development of Project Tundra and the coal-fired electric industry of the future. “Securing approval for the operations under BNI’s new coal lease area is about ensuring access to affordable and reliable baseload power for homes and businesses that remains available 24/7, regardless of weather conditions," Hoeven said. "In particular, preventing these $35 million in cost increases were key as we continue working to advance the coal-fired electric industry of the future through Project Tundra."
Project Tundra is a major carbon dioxide capture, utilization and storage (CCUS) project being developed at the Milton R. Young Station. Earlier this year, Minnkota announced the project has entered its final stage of development as new affiliates, including TC Energy, Mitsubishi Heavy Industries and Kiewit, were added to build the project.
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Cramer Visits Well Reclamation Sites
Work Funded by $25M from REGROW Act
Senator Kevin Cramer and employees of the ND Department of Mineral Resources visited two orphaned well sites outside of Minot this week. The two sites are in the process of being plugged and reclaimed by the state with funding from the Infrastructure Investment and Jobs Act, which included Cramer's REGROW Act (Revive Economic Growth and Reclaim Orphaned Wells). The bipartisan legislation was co-sponsored by Sen Ben Luján (D-NM).
“When Senator Luján and I introduced the REGROW Act, we took a really good idea created by the state of North Dakota and we ran with it. This brilliant idea used federal pandemic assistance dollars to keep oilfield workers employed during an economic downturn using the very skills they've learned from producing oil and put them to work reclaiming old abandoned oil wells,” Cramer said. “This is a win-win-win for workers, the environment and North Dakotans. This land can take on a new purpose, and grow food all over again like it did before an oil well ever existed here.”
“The NDIC is very grateful to Senator Cramer for sponsoring the REGROW Act," said Lynn Helms, Director of the ND Department of Mineral Resources. "The well plugging projects funded by his legislation are providing job opportunities for thousands of workers while fast-tracking environmental restoration,”
Orphaned wells are those which are no longer in use and according to the U.S. Department of the Interior, are “environmental hazards and jeopardize public health and safety.” Also known as abandoned wells, they can contaminate groundwater, emit noxious gases, limit productive land use, create flooding and sinkhole risks, and can harm wildlife. As of December 2021, there are 131,227 documented orphaned wells and estimates of between 310,000 and 800,000 undocumented orphaned wells throughout the United States. Last August, Cramer announced the Interior Department awarded an initial $560 million from the act to 24 states, including $25 million to North Dakota, to begin work to plug, cap and reclaim orphaned oil and gas wells.
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Gov's Award to Watford City Student
Aidan Pelton Recognized for Leadership
Aidan Pelton, who is a junior at Watford City High School this fall, received the Student Leadership Award at last week's Governor’s Summit on Innovative Education. Pelton was recognized for his involvement and leadership role in programs that support other students and encourage them to get engaged in the community. During an interview with Scott Hennen on the radio program What's on Your Mind, Pelton described his role in the high school's Little Buddy Program. Click here to listen to Pelton's comments. Pelton also serves as a member of Vision West's mental health subcommittee, which encourages honest discussions of mental and behavioral health issues. He was part of a panel at Vision West's Behavioral Health Summit held in Dickinson in June. Click here to listen to Pelton's comments. Pelton has also served as chair of the high school's ambassador program, which encourages local businesses to get involved in education and helps new students integrate into the community. The ambassadors hosted a cultural food fair in March that celebrated the 23 countries represented in Watford City, and are planning another one in October. Click here and advance to the 1:44:00 mark to listen to the full What's on Your Mind interview with Pelton.
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Lane Closure Planned on Hwy 83N
Water Pipeline Installation Next to Road
An Army Corps of Engineers project along the east side of Highway 83 will require a lane closure beginning next week for a two-mile stretch of the highway north of Coleharbor. The work will occur between mile markers 155-157. Road work will begin Monday, August 28, and will continue as long as the weather permits.
The pipeline will be installed on the east side of Hwy 83 from the Snake Creek Pumping Plant discharge center. Northbound traffic will be narrowed to one lane with no shoulder in the work zone. The speed limit will be reduced and motorists can expect minor delays and infrequent stopping by flaggers.
Click here for more information about construction projects and road conditions throughout North Dakota, or call 511.
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BLM Seeking ND Public's Comment
13 Parcels Under Review for Future Sale
The Bureau of Land Management (BLM) Montana-Dakotas State Office has opened a 30-day public comment period to receive public input on 13 oil and gas parcels totaling 3,670 acres that may be included in an upcoming lease sale in North Dakota. The BLM completed scoping on the parcels in July and is now seeking public comment on the parcels, potential deferrals, and the related environmental analysis. BLM will use input from the public to help complete its review of each parcel and determine if leasing of the parcels conforms with applicable laws, policies, and land use plans. The parcels the BLM is analyzing, as well as maps and instructions how to comment are available here. Leasing is the first step in the process to develop federal oil and gas resources. Before development operations can begin, an operator must submit an application for permit to drill detailing development plans. The BLM reviews applications for permits to drill, posts them for public review, conducts an environmental analysis and coordinates with State partners and stakeholders. The comment period ends September 17. Information on current and upcoming BLM lease sales is available through the National Fluid Lease Sale System.
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Registration Open for WDEA Annual Meeting
Sponsorships and Exhibit Space are Available
Informative Event Set for October 11-12 in Dickinson
Get the date on your calendar! The annual meeting of the Western Dakota Energy Association will be held:
October 11-12 Astoria Hotel & Event Center Dickinson, ND
The opening day will feature presentations on the current and forecast state of North Dakota oil production, an update on pipeline takeaway capacity, the latest developments in coal, oil and gas research, updates regarding LoadPass Permits, a panel discussion on transportation issues, and a panel discussion on the outlook for the state's oil industry.
Day Two will feature an update on the ND Petroleum Council's effort to recruit workers from Ukraine, a discussion of electric reliability concerns, a panel discussion on education policy and funding issues, a report on development of the Southwest Area Career & Technical Education Academy and the Theodore Roosevelt Presidential Library, a report on interim legislative activity, and the latest developments in the Biden administration's War on Fossil Fuels. The meeting concludes with election of the WDEA Executive Committee, and a vote by delegates on a bylaws amendment to repeal Executive Committee term limits. Board members up for election who are eligible to serve an additional three-year term include Mountrail County Commissioner Trudy Ruland, Bowbells City Councilman Shannon Holter, and Stanley Public School Superintendent Tim Holte. The delegates will also choose two members to fill Executive Committee vacancies created by the resignation of Stanley City Councilman Zach Gaaskjolen and Williams County Commissioner David Montgomery. The winners of five $1,000 WDEA scholarships will also be announced at the meeting. Click here to see the tentative agenda. Sponsorships and exhibit space are available. Click here for sponsor/exhibitor opportunities. Click here to register to attend.
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WDEA Offering Energy Scholarships
Aimed at Students Pursuing Energy Career
The Western Dakota Energy Association will award five $1,000 scholarships this fall to students in an energy-related field at a North Dakota college, university or technical school.
WDEA President Trudy Ruland said the association is offering the scholarships to help the industry and western communities meet the workforce challenges historically experienced with oil industry growth.
“We recognize that North Dakota will see benefits from the oil industry only if it is able to attract the workforce it needs,” said Ruland. “We want to do everything we can to encourage young people to explore the many opportunities for a rewarding career in the energy sector.”
Funding for the scholarship program is generated by sponsorships of WDEA’s annual meeting.
Click here to learn more about the selection criteria and how to apply. Click here to view or download an application form. The application deadline is September 30. Scholarship winners will be announced at WDEA's annual meeting October 11-12 in Dickinson.
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Wise Roads Station Online Near Center
50th Station Has a View of M.R. Young Plant
The 50th station installed as part of WDEA's Wise Roads project went online this week at a site about six miles south of Center, ND, nearly due west of Minnkota Power's Milton R. Young Station. The Wise Roads project (Weather Information System to Effectively Reduce Oilfield Delays and Disruptions), developed in partnership with the ND Agricultural Weather Network, was funded in part by a $250,000 grant from the Oil and Gas Research Council. The weather information the stations provide, especially precipitation data, helps county road managers identify areas where gravel roads have become saturated, necessitating weight restrictions that shut down oil field trucking operations. Having more precise precip data allows road managers to better pinpoint the restrictions, allowing industry operations to continue in areas where rain did not fall. The Wise Roads station south of Center in Oliver County is the first and only station not in an oil-producing county. The site was chosen because it helps highlight the importance of reliable, coal-based electricity to the oil industry, and because carbon dioxide capture and sequestration activities are emerging in the area, it also calls attention to the ultimate prize of the potential use of CO2 for enhanced oil recovery. The station, which is located adjacent to a heavily-traveled gravel road, also fills a weather data void, since it is located about midway between existing NDAWN stations at Hazen and Mandan. The Center station will soon be added to WDEA's Wise Roads web site (www.wiseroadsnd.com), where users will be able to view photos and access weather data from the station.
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Wise Roads Shots of the Week
Stormy Weather and Rainbows
Thunderstorms rolled through western North Dakota late this week, bringing beneficial late summer moisture to maturing corn and sunflower crops. After the storm clouds passed, Wise Roads cameras captured some wonderful rainbows. Images from Wise Roads cameras are updated continuously throughout the daylight hours on the Wise Roads web page.
The Wise Roads project (Weather Information System to Effectively Reduce Oilfield Delays and Disruptions) was developed by WDEA to increase the efficiency of the movement of oilfield truck traffic. Most weather stations were placed in the core area of Bakken production, focusing on Dunn, McKenzie, Mountrail and Williams Counties. The project provides more accurate weather information to county road managers, especially about rain events, to minimize the need to impose weight restrictions when gravel roads get wet. It was developed in partnership with NDAWN, which maintains the stations for WDEA. The project was also assisted with a $250,000 grant from the Oil & Gas Research Council.
Thus far, 50 new stations have been installed, 39 of which are located in the four core counties. Prior to the start of the project, Dunn and McKenzie Counties had just one station each, Mountrail County had three and Williams County had four. Weather station data and high-resolution photos can be found at wiseroadsnd.com. Additional information is also available from NDAWN.
Featured shots this week are clockwise from upper left, Liberty 5E with a massive thundershower in the distance, Center, with a shelf cloud rolling past the newly-installed station, Palermo with a rainbow partially obscured by sunshine, and Sawyer in Ward County, with a colorful double rainbow. Click on the link for a high-resolution image.
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Quick Connect
• The Ukrainians with the Bakken Grow Program are finally here! -- KFYR - TV
• North Dakota needs carbon dioxide supply to keep oil flowing -- Energy Intelligence
• Columnist criticizes Biden admin's domestic energy production policies -- In Forum
• ONEOK to expand Elk Creek NGL pipeline; Williston volumes on rise -- RBN Energy
• Draft environmental study on Dakota Access pipeline expected in fall says US Army Corps -- Reuters
• Action picking up on Summit pipeline; Iowa hearings follow North Dakota rejection -- Bismarck Tribune
• Oil economics driving slow, steady natgas production growth in North Dakota -- Natural Gas Intelligence
• National permitting reform discussion could have impact on North Dakota industries -- Bismarck Tribune
• North Dakota reached new all-time high with over 18,000 producing wells -- McKenzie County Farmer
• Canadian Crescent Point Energy to sell North Dakota assets to Kraken Resources for $500M -- Reuters
• North Dakota's unemployment rate drops below 2% as state gains 9,600 jobs -- The Center Square
• Burgum will need 50,000 donations, poll at 3% to qualify for the next presidential debate -- KFYR - TV
• Violators of state's new primary seat belt law receiving more warnings than citations -- Dickinson Press
• Tax Commissioner Kroshus discusses tax credits expanded by recent legislative session -- KX News
• Doug Burgum calls clashes at GOP debate 'noise,' but was the governor heard? -- Dickinson Press
• Workers make headway on Theodore Roosevelt presidential library in ND Badlands -- Fox News
• Deputy director discusses workforce development office at North Dakota Dept of Commerce -- KX News
• New rodeo arena in the heart of Medora in design phase with goal to open in summer 2026 -- KFYR-TV
• Community of Fairfield opens doors, hearts to newcomers amid war with Russia -- Dickinson Press
• Denbury announces 1,800 gallon source water spill from pipeline south of Marmarth -- KFYR - TV
• Hershey's cites limitations, plans to close Dot's Pretzels flagship facility in Velva -- Dickinson Press
• Many local landowners voice frustration about claims of eminent domain -- McKenzie County Farmer
• Slope County Fair kicks off 103rd edition in Amidon Friday through Saturday -- Bowman County Pioneer
• Minot examines West Fargo childcare program to address local shortage of options -- Minot Daily News
• Ribfest 2023 draws oilman Harold Hamm to Watford City for book signing -- McKenzie County Farmer
• Tribal Energy Sovereignty Initiative receives $4M National Science Foundation grant -- Dickinson Press
• Annual Women's Expo: Connecting Businesses and Community in Dickinson -- Dickinson Press
• New cell tower approved by Mercer County Commission, planning and zoning board -- The Beacon
• New Minot Area Workforce Academy launches its first career and technical courses -- Minot Daily News
• With $69M bond looming, Dickinson Public School District's fiscal roadmap unveiled -- Dickinson Press
• Former school property could fill new educational purpose as a native grassland -- Minot Daily News
• Career and Technical Education Centers moving forward in Williston and Watford City -- KFYR - TV
• Classes back in session at Minot schools; district still facing teacher shortages -- Minot Daily News
• ND schools face significant teacher shortages; harder for rural districts to find educators -- KFYR - TV
• "Welcome to the Central Campus:" A look at Williston Middle School's new format -- KFYR - TV
• Minot Public Schools superintendent Vollmer announces plans for retirement -- Minot Daily News
• Construction workers bustling at Rugby's Ely Elementary as teachers get back to routine -- KFYR - TV
• Williston Basin district special election ballots canvassed, tallied with final result -- Williston Herald
• Ray school board member resigns after being seated last month; new member sought -- Tioga Tribune
• EPA starts over on smog standards, garnering pushback from environmentalists over delay -- The Hill
• Exxon Mobil plans to spend $12.93 billion to develop sixth offshore oil project in Guyana -- Reuters
• New Mexico startup continues efforts to install CCS technology at Four Corners coal plant -- E&E News
• The U.S. remains world's top oil consumer and producer, says Energy Institute 2023 review -- Forbes
• Why has Biden declared war on natural gas? There's really no good answer. -- New York Sun
• Latest US upstream merger to create $14B premier producer in Permian Delaware basin -- Oil Price
• Biden administration finalizes restoration of Obama-era offshore oil drilling safety rules -- The Hill
• Canada's oil heartland halts new wind and solar projects as resistance to renewables grows -- Oil Price
• Climate change obsession is a real mental disorder; Fueled by alarmist news media -- MSN.com
• Lawsuit challenging natgas expansion could change how regulators assess state policies -- E&E News
• Climate alarmism over summer heat waves and wildfires drives false 'solutions' -- New York Post
• BlackRock backs off Its radical ESG agenda, investment response to shareholder pressure -- CUTP
• Shocking candor on fuel standards; Biden admits net negative benefits -- Wall Street Journal
• API reports 2.418M barrel crude draw, down from previous week's 6M, as oil closes lower -- Oil Price
• 'Drill, frack, burn coal': Republicans echo Trump energy policy at presidential debate -- E&E News
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Factoid of the Week
Horizontal drilling was born out of the practice of drilling directional wells to tap stranded oil reserves that lay beneath cities. It dates back to the 1970s when Continental Resources drilled directional wells under the city of Enid, Oklahoma. Continental went on to develop the first-ever horizontal oil field in the world at Cedar Hills in Bowman County. Today, 94% of all new wells are drilled horizontally.
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August 29
Bismarck
August 31
Bismarck and via Teams
September 7
Bismarck
September 7
Bismarck
September 12
Bismarck
September 12
Bismarck
September 14
Bowman
September 19 - 21
Watford City
September 20 - 21
Bismarck
September 21
Hazen City Hall
September 27
Bismarck
October 4 - 5
Bismarck
October 11 - 12
Dickinson
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Oil prices and rig count
August 25, 2023
WTI Crude: $79.83
Brent Crude: $84.48
Natural Gas: $2.54
North Dakota Active Oil Rigs: 32 (Down 7) August 25, 2022 -- 46 rigs
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Geoff Simon
Editor/Executive Director
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