Posted on 05/16/2014 10:17:30 AM PDT by thackney
Despite impressive strides made in areas like North Dakota and Ohio, and the previous challenges felt in northern regions of the state, Texas is still far and away the leading producer of domestic oil.
Earlier this week, the Energy Information Administration released its drilling productivity report, which showcases anticipated production levels in the Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara and Permian regions. Collectively, these combine for 90 percent of the United States' oil production growth. The Eagle Ford Formation, which runs along most of southern Texas, is leading the way.
According to the report, Texas is the nation's top oil producer, with an output of 89 million barrels this past January. That number is more than twice the output of North Dakota, the country's number two producer. Production from the Eagle Ford formation is projected to increase by 27,000 barrels per day and is expected to reach roughly 1.41 million bpd by this June. Meanwhile, North Dakota's Bakken formation is projected to increase by 22,000 bpd to 1.07 million by June.
Texas' production is on pace to shatter its output from last year. According to the Texas Railroad Commission, drillers completed 9,876 oil wells between January and April of this year. This is a significant increase over 2013, when 5,405 wells were drilled during the same four-month span. Much of the success this year can be attributed to an early head start, as January alone saw the completion of 3,131 wells.
How long will it last?
A recent Forbes article analyzed the oil and gas boom in the state and asked the obvious question: how will it all end? The collapse of the housing bubble had such a sizable impact on the country's economy, it's reasonable that some would question the long-term viability of the booming oil and gas market. According to the piece, those who live in the Eagle Ford region and other significant shale plays in the state have expressed concern over a potential future bust.
Contributor David Blackmon addressed this and pointed to previous oil busts in the state. In fact, nearly every oil boom ended in some form of a bust, but Blackmon believes that the current boom at the Eagle Ford shale will have a different ending.
"The differences between today's situation and that of prior booms are many," he wrote. "Start with the fact that previous booms, like the oil boom of the early 1980s, came about due to high oil prices driven by restrictions in supply. The restrictions in the 1980s were artificially driven by OPEC, and prior booms came about simply due to a failure by the global industry to identify adequate new resources. In every case, you had rising demand and limited supplies to meet it."
Supply has risen thanks to investments into oilfield technologies designed to facilitate more efficient oil and gas production. Producers that utilize the tools at their disposal and look to innovative oilfield solutions are in a better position to meet the increasing demands. Working with the right oilfield technology providers can assist well operators in managing change and building a competitive advantage.
Texas - What America used to be
Now, that is a hockey stick to be proud of....
It is going to be a long time before these fields are played out. They are massive.
California has some big reserves but the greenies are keeping the drillers away.
They’re also renewable.
Like you said, the deposits are massive on a scale that most people have no idea. Plus, there are massive deposits in Mexico that have barely been tapped. Pemex has announced that they will, for the first time, allow foreign oil companies to partner with them to extract oil and gas.
The only thing holding back the oil industry is Washington and the ignorant people who are in leadership positions.
Was just down where the Eagle Ford is located. The growth is huge and you have a problem getting through the little towns because of so many big trucks. I’d say it’s great for all the people except the roads are damaged and I don’t know whose responsible for fixing them or if they ever will be but if you want to make big bucks they are looking for you!! Truck drivers make at least a hundred thousand dollars year or more and I know this because both my nephews made that last year. They are 23 and 26 yrs old! Not bad!
Not bad at all. I work where all the Texans go to train on this stuff, Grande Prairie, Alberta. I do electrical in the oil field. Easy to do over 200k a year.
North Dakota is also looking, yet many people don’t want to relocate.
Yes, I have a big truck too, and they’re all over, it’s dangerous to drive a car here lol.
We still have a couple hundred acres under lease, so I’d say it will out last me.
Could you remind me when peak oil was due? I haven’t seen any peak oil threads in a while. I’d pink the advocates, but I don’t recall who had that side of the debate.
Peak cheap oil is probably real for now.
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