In the last year, Citibank predicted that the USA would be oil independent in five years. I used to wonder how Eagle Ford and the Bakken could scale up to produce that much oil. And if they did scale up, price of oil would fall below what they could produce oil for profitably—so oil production would fall.
Turns out Eagle Ford and the Bakken don’t have to scale up. The next mega oilfield comes out of west texas permian basin in the cline shale formation.
What’s more they’ll be able to extract the oil in the Cline shale formation at much lower costs than those in the Bakken fields —so even when prices fall their margins will be so high —they can keep on drilling.
We’re coming up to a real sweet spot in the oil patch in the next decade.
“We’re coming up to a real sweet spot in the oil patch in the next decade.”
IF the Obama and the democrats and their EPA don’t kill all oil production in the USA as they are shutting down coal power plants now.
Texas isn’t the only place they are finding new oil.