Posted on 09/23/2013 8:33:03 PM PDT by ckilmer
Permian Basin oil production outstrips the Eagle Ford The Permian Basin is out-producing the Eagle Ford Shale in terms of crude oil production.
The Permian Basin is out-producing the Eagle Ford Shale in terms of crude oil production.
The Eagle Ford may be at the top of San Antonians’ minds when it comes to oil and gas activity, but crude production in West Texas is now outpacing the shale to our south.
From January to June, West Texas’ Permian Basin pumped out 889,808 barrels per day (bpd) of oil, passing up the Eagle Ford’s 598,706 bpd output, according to Texas Railroad Commission figures.
The Permian hit a major bust almost three decades ago that many considered the death of the Texas oil business, but recent horizontal drilling has rekindled its output.
Some of the same companies active in the Eagle Ford — Pioneer Natural Resources, for example — are now wringing crude from previously inaccessible formations in the Permian.
That means the Permian likely will produce 1.4 million bpd in 2013 and will hit 2 million bpd mark within the next five years, says Stephen Shepherd, who tracks the industry for Simmons & Co. International in Houston.
“The growth story from that point is really more in the Permian than the Eagle Ford,” Shepherd says.
But that’s not to say the Eagle Ford is slowing.
This year, production in the South Texas formation is projected to hit 930,000 bpd, according to Shepherd. And it’s likely to surpass North Dakota’s Bakken Shale in 2014 output.
However, any major stairstep in Eagle Ford oil production will come as companies begin drilling wells closer together in productive areas or use new techniques to wring more production from their wells, Shepherd says.
“It’s very contingent on technology,” he adds.
Haven’t been through there in 5 years but the Permian seems to be doing well. God Speed to them. And to all petro producing regions. Somehow managing to produce a product and a profit in this sea of regulation and otherwise economic malaise.
God, I hope a lot of millionaires and well-fed middle class families result.
OBOZO could give a $H*T!!!!!
I am sure he will do everything in his power to destroy it.
So they produce all that oil but anyone bother to ask where it is going to wind up? How can the few refineries here in the U.S. sustain the influx of those increased quantities? Building new refineries will take years to bring on-line, IF permits to build are ever authorized.
They’re busy, all right- a month or so ago, I was driving down the road from Van Horn to Marfa, and at one point I could see four active drilling rigs and a couple of workover rigs. Heck, now I’m seeing rigs set up right off the highway. When I was a roughneck 25 years ago, we had to drive miles and miles into the middle of ranches to go to work.
I guess you didn't notice that the price of oil went from $25 to $100 during the Bush years. Before that, there wasn't a lot of profit to be made in shale oil or Alberta Tar oil.
And it wasn't just $100 oil. In June 2008 oil spiked briefly from $100 to $150. That spike pricked the real estate bubble and rapidly deflated the economy. Oil fell to its lowest price in Dec 2008, but began its recovery by the time Obama entered office. So by spring 2011, oil had returned to $100.
I have a good memory of the oil boom/busts in the 50s-60s and 70s-80s. Maybe this is the boom that goes on forever.
The political administration (executive or legislative) ^does not^ set or influence the price of a barrel of oil on an international basis.
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