A North Dakota oil regulator says the state is likely to set a new high for drilling permits this year.

Bruce Hicks is assistant director of the state Industrial Commission's oil and gas division. He told the commission he's expecting the agency will issue more than 1,100 drilling permits. Hicks says the previous high was set in 1981.

During October the price of North Dakota oil fell from $86 a barrel to just $55 a barrel. But state mineral resources director Lynn Helms says the decline hasn't affected the number of drilling rigs yet.

Helms says there are 93 rigs working in western North Dakota. They're producing about 178,000 barrels a day, and production has been rising.

North Dakota Petroleum Council president Ron Ness isn't as optimistic. Ness says some oil companies are reassessing their operations in the wake of the price decline.

- Associated Press