North Dakota Oil Production Rose in July

The state produced 35.85 million barrels of oil in July, exceeding revenue forecasts.

Updated on Sept. 22, 2026 in Oil and Gas

North Dakota Oil Production Rose in July

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North Dakota oil production hit 35.85 million barrels in July 2026, averaging 1.156 million barrels per day. The output figure reached 5.15% above the state revenue forecast, driven by 20,072 active oil wells.

Why it matters

The state relies heavily on oil and gas tax revenue to fund local infrastructure and public programs. Increased production helps the state budget because oil prices have remained high due to U.S. conflict with Iran.

North Dakota reached a total of 20,072 producing oil wells, with an average of 28 rigs operating in September. The state market oil price sat at $75.56 per barrel in July, notably higher than the $57 price point used for the official state revenue forecast.

The players

Department of Mineral Resources

This state agency oversees the regulation and reporting of oil and gas extraction activities across North Dakota.

The details

Oil companies in the state successfully increased production capacity to capitalize on the price environment. The state revenue exceeded expectations by 32.6% above the oil revenue forecast due to the combined impact of high production and elevated market prices.

July 2026: North Dakota recorded 35.85 million barrels of oil production.
August 2026: The region saw a WTI crude oil price of $86.60 per barrel.
September 21, 2026: The Department of Mineral Resources held a media briefing.

Market Landscape

This production surge follows the structural framework set by the North Dakota oil and gas tax revenue allocation laws. The increased yield updates revenue figures previously established by that fiscal distribution framework.

Higher tax revenues from the oil sector provide additional funding for state infrastructure and public programs. While national gas prices remain at $4.47 per gallon, residents in North Dakota are paying a lower average of $4.23 per gallon.

The takeaway

The state's fiscal health remains closely tied to volatile crude oil prices and global geopolitical tensions. Maintaining a consistent rig count allows the state to continue leveraging high market prices to exceed revenue projections.