Posted on 09/23/2013 8:27:48 PM PDT by ckilmer
Eagle Ford, Permian Basin on Target to Surpass 2 MMbopd in 2013
Texas oil production from just two fields, the Eagle Ford shale and the Permian Basin, is likely to total well over 2 million barrels of oil per day (MMbopd) this year, if recent output trends continue, and could approach 2.5 MMbopd sometime in 2014, according to analysts.
The Eagle Ford has been front and center in energy news, and has stolen some of the limelight from the Permian Basin. However, horizontal drilling and hydraulic fracturing have rejuvenated production in the Permian Basin in recent years, and many of the same players who are drilling in the Eagle Ford are also drilling in the Permian Basin.
Production in the Eagle Ford play was about 599,000 barrels of oil per day (bopd) during the first six months of 2013, according to figures from the Texas Railroad Commission. Projections by the Wall Street Journal are that output will reach 930,000 bopd sometime this year. The Eagle Ford is expected to move well past the 1-million barrels-of-oil-per-day threshold by mid-2014.
Meanwhile, output in the Permian Basin, which contains both shale plays and conventional plays, was about 890,000 bopd during the first half of 2013. Output is projected reach as high as 1.4 million bopd sometime in 2013, according to Stephen Shepherd for investment banking firm Simmons & Co. International.
The Eagle Ford play, which stretches 11 million acres from the Texas border with Mexico in the south to near Louisiana in East Texas, contains sandstone, shale and limestone. The Permian Basin is made of carbonate and sandstone.
May God continue to bless Texas.
Who owns the oilfield lands, the state, private enterprises, or the federal govt, or combination thereof?
Its all on private lands
All on private lands. Well, then, Obama will claim credit for the increase in oil production, deliberately leaving out the fact that he didn’t have a thing to do with it.
See, that’s the Chicago Way!
My way - Drill, baby, drill!
yeah you got it.
In fact, I think that obama’s legacy will be about like Clinton’s — especially if the supreme court declares obamacare unconstitutional in november or december this year.
What was clinton’s legacy? a strong economy and a balanced budget. While the dems tout Clinton’s balanced budget it was actually newt’s restraining the federal budget while the growing economy provided the additional revenues to balance the budget. Clinton fought tooth and claw against newt as far as restraining the federal budget. He had nothing to do with the economic growth.
Most of the growth in the next couple years will be from the oil/gas patch. Obama will have nothing to do that. In fact, he will have done everything he could to stop it. If obamacare is repealed then growth will return to 4% annually from current anemic 1.8. 4% annual growth will add billions to federal revenues. And shrink the federal budget deficit.
Technology has bought these shales to the fore front.
I am waiting for the day when they tap into the Anahauc Shale formation that rings entire gulf coast of the US.
These days will be most interesting to see how or if they dwarf the Permian and Eagleford as predicted.
These days will be most interesting to see how or if they dwarf the Permian and Eagleford as predicted.
...........
The permian basin is bigger than eagle ford and baaken combined. There are several big pay fields stacked on top of the other at intervals.
Here’s a picture of the oil basins in the USA. It looks like oil only occurs in commercial quantities in only narrow sectors of each basin. But technology may change that in the future.
http://www.energytrendsinsider.com/2012/03/26/setting-the-record-straight-on-u-s-oil-reserves/
You’re the first guy I’ve heard talk about the Anahauc Shale formation but according to this article it looks to be the source rock for the oil below spindletop.
http://archives.datapages.com/data/bulletns/1957-60/data/pg/0042/0012/2900/2935.htm
So yeah it would make sense this formation would have a lot of shale oil. but you would think the majors would be all over it — if that were the case.
Why not?
That said there is drilling in east Texas and Louisiana and a little on the east side of the Mississippi river in Mississippi. so its not like the oil companies are ignorant of what’s there. It looks like they’ve drilled and have not been impressed so far with their results.
Not sure why not and the only thing I see is the price of gas and infrastructure (ie: pipeline, transport trucks, rigs) to handle the additional load.
First one to hear talk about it. Now that is funny. I did a paper on it back in ‘76 as a freshman as a petroleum engineer. It is a huge structure stretching and ringing the entire gulf region from Florida to Yucatan.
Non-college, $60,000+ oilfield jobs a plenty for every American with a pulse who is willing to move instead of mooch off of family and welfare.
First one to hear talk about it. Now that is funny. I did a paper on it back in ‘76 as a freshman as a petroleum engineer. It is a huge structure stretching and ringing the entire gulf region from Florida to Yucatan.
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I’ve never heard tell the name you mentioned but you can see the big shale oil structure in pink all around the gulf of Mexico going up to about the florida panhandle.
the Tuscaloosa Marine Shale formation in Louisiana according to this map—which shows the basin in which the Tuscaloosa Marine Shale formation resides—but does not name the basin— looks to be a prospective play.
http://www.foxbusiness.com/static/managed/img/fb2/news/shale-plays-map-big.jpg
That said, according to this article the Tuscaloosa Marine Shale formation in Louisiana and Missippi is an extension of the Eagle Ford formation:
http://msbusiness.com/blog/2013/05/17/fervor-grows-for-tuscaloosa-marine-shale/
Mississippi Development Authority geologist and oil industry veteran Jack Moody is not entirely exaggerating when he talks of the Tuscaloosa Marine Shale region having Texas-size potential. He cites geological similarities between the multi-billion-dollar South Texas Eagle Ford play and the TMS, noting nature deposited the oil and gas in both locations about the same time and both are in regions close to the Gulf of Mexico.
The theory is that there could be a continuous band of shale oil and gas running from the Eagle Ford east to the TMS. “Wells are being drilled to test that hypothesis,” said Moody, program director of the MDA’s Office of Mineral Leasing.
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Oh here’s the answer to why they have been slow to drill. The formation is deeper than eagle ford. Its below 10,000 feet. So costs per well run between 10-20 million or an average of 15 million per well.
“Drilling of each deep well so far has run from $11 million to $20 million.
Encana — which led the pack with 290,000 acres leased in Mississippi midway through 2012 — has decreased its drilling costs from around $20 million to $17 million a well, said spokesman Doug Hock. That cost is expected to go even lower, he added.
“We’re budgeting an average cost of approximately $15 million per well for the year,” he said. “This is related to technical changes and gaining an understanding of how to most efficiently access the resource.””
Probably a good measure of how valuable the oil deposits are would have to do with how much the oil companies are will to pay to lease the land.
Here’s an article about the Mississippi Lime formation along the Kansas Oklahoma border. the author is really excited because some of the land leases have been as high as 1700@acre.
“Kansas has been invaded by horizontal drilling people,” Kansas lease buyer Fred Hambright told ABC News. “Some people have really hit it big. We’ve seen leases go as high as $1,700 an acre.”
http://www.marketintelligencecenter.com/articles/251069
http://dailyreckoning.com/the-mississippi-lime-shale-play-is-heating-up/
Does that sound to you like the oil companies think there’s hundreds of feet of recoverable oil under the property?
Some of the EF leases were going in DeWitt and Karnes County for 5 grand.
Anahuac Shale may have been changed over the years. I know there are still articles and maps on the net since I was researching them a while back trying to see where our properties lay. It stretches into Mexico to the Yucatan Peninsula. Like a ring around the Gulf
There is a formation that seperates the EF and Anahuac Shales in depth and north/south. We are down coast of EF and up coast of the Anahuac if that makes sense.
Some of the EF leases were going in DeWitt and Karnes County for 5 grand.
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Seems to me I’ve read somewhere that the leases out in the permian basin can go much higher.
A sharp play would be to figure out who the smaller players were owned who the land in the Permian basin over the big plays. There are small cap oil companies who own bits and pieces of land here and there in permian basin. These companies make their money by selling out the majors at huge mark ups. and their stocks double and triple overnight.
The problem is that you have to figure out which of these small companies have bought the rights to land with big deposits beneath. (you find that stuff out by traveling around and attending conferences.)
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There is a formation that seperates the EF and Anahuac Shales in depth and north/south. We are down coast of EF and up coast of the Anahuac if that makes sense.
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No not really. But you can see in this map that the Eagle Ford is part of a much larger hydrocarbon basin that runs along the coast. They’re both running north east by southwest except for the southernmost portion of the basin which goes straight south into Mexico.
http://www.foxbusiness.com/static/managed/img/fb2/news/shale-plays-map-big.jpg
No there is a geological rift formation in the ground that seperates the two formations. A rock ledge if you will and an elevation change in most places. It does not mean that these two stratas do not touch somewhere, but they are actually two distinct stratas.
Think of water tables.
So your argument is that the Anahuac formation is distinct layer from either the eagle ford layer or the Tuscaloosa Marine formation layer and the Anahuac layer runs all around the gulf to the florida panhandle like we see in the pictures.
and you believe that the Anahuac layer is light/medium/thick with hydrocarbons?
yes
and you believe that the Anahuac layer is light/medium/thick with hydrocarbons?
yes
................
That the drillers aren’t working the Anahuac layer mean that drillers have tested it and in most places it doesn’t have commercial quantities of oil?
have you seen examples of commercial quantities of oil in the Anahuac layer.
Is the Anahuac layer a shallow layer above 5000 feet. Middle layer btw 5-10 thousand feet or deep below 10k.
Does it vary between gas and oil and gas liquids or is it all one or another.
no need to answer. just curious.
Do you think this 2009 assessment of hydrocarbon reserves of Frio and Anahuac Formations is a bout right?
.................
USGS Assessment of Undiscovered Oil and Gas Re
sources for the Oligocene Frio and Anahuac
Formations, Onshore Gulf
of Mexico Basin, USA*
Sharon M. Swanson
1
and Alexander W. Karlsen
1
Search and Discovery Article #10178 (2009)
Posted February 28, 2009
In a recent U.S. Geological Survey
assessment of undiscovered, technically recoverable oil and gas resources
in Tertiary strata of onshore lands and State waters,
estimated total mean values of undiscovered resources for the Fr
io and Anahuac Formations were 172 million barrels of oil (MMBO),
9384 billion cubic feet of natural gas (BCF
G), and 542 million barrels of natural gas liquids (MMBNGL).
http://www.searchanddiscovery.com/documents/2009/10178swanson/images/swanson
Do you think this 2009 assessment of hydrocarbon reserves of Frio and Anahuac Formations is a bout right?
.................
USGS Assessment of Undiscovered Oil and Gas Re
sources for the Oligocene Frio and Anahuac
Formations, Onshore Gulf
of Mexico Basin, USA*
Sharon M. Swanson
1
and Alexander W. Karlsen
1
Search and Discovery Article #10178 (2009)
Posted February 28, 2009
In a recent U.S. Geological Survey
assessment of undiscovered, technically recoverable oil and gas resources
in Tertiary strata of onshore lands and State waters,
estimated total mean values of undiscovered resources for the Fr
io and Anahuac Formations were 172 million barrels of oil (MMBO),
9384 billion cubic feet of natural gas (BCF
G), and 542 million barrels of natural gas liquids (MMBNGL).
http://www.searchanddiscovery.com/documents/2009/10178swanson/images/swanson
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