Washington (Platts)--27Jul2015/512 pm EDT/2112 GMT

US crude prices would still need to drop significantly before falling below breakeven prices in North Dakota's four most prolific counties, according to data released by the state Department of Mineral Resources Monday.

Breakeven prices for rigs in North Dakota's Dunn, McKenzie, Mountrail and Williams counties range from $24/b in Dunn to $41/b in Mountrail, according to the data.

Those four counties accounted for 63 of the state's 68 oil rigs on Monday, according to the data.

The breakeven prices ranged from $28/b to $42/b in the four counties when the DMR published its last such data in October 2014.

At the same time, breakeven prices have fallen dramatically in counties with far less drilling activity, the data shows. The breakeven price is $62/b in Divide County, which has three working rigs. Previously, the breakeven price in Divide was seen to be $85/b, when the county had eight working rigs. McLean County saw its breakeven price fall to $25/b from $73/b, although there are no longer any working rigs there, according to the data.

The drop in breakeven prices comes as North Dakota's crude production has grown as rig counts and prices have dropped. Earlier in July, the state's oil and gas regulator reported that crude production topped 1.2 million b/d in May, compared with April production of less than 1.17 million b/d and just shy of the all-time record of 1.23 million b/d, set in December 2014.

This production boost, aided by improved drilling technology and increased efficiencies, came as the statewide rig count in May fell to 83. The all-time of 218 was posted in May 2012.

--Brian Scheid, brian.scheid@platts.com
--Edited by Keiron Greenhalgh, keiron.greenhalgh@platts.com

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