Have a lot of articles to discuss about what’s going on in the energy area. Lots of turmoil and uncertainty at the moment. Here are a few articles, to help get caught up:
12/6 – Economist – Sheikh v Shale – Love the cover illustration! I’ll be rooting for the shale guy in the showdown.
Article gives credit to shale oil for the drop in gas prices and oil prices. Take a bow, all you frackers in Bakken, Eagle Ford, and Permian! A $40 drop in price moves $1.3 trillion a year from producers to consumers. That is a savings of around $800 a year for an average American, or equivalent to a 2% pay raise, according to the article
(Photo by James Ulvog. Four wells on a pad was big news only a short while ago. Now 4 is a small site.)
Only 10 oil fields have surpassed a production level of one million barrels a day. Currently three of them are running in the U.S.: Bakken, Eagle Ford, and Permian.
I’ve been wanting to find a source for Eagle Ford production. After reading a Carpe Diem post (which I can’t find again), I found a great source: the Energy Information Administration’s Drilling Productivity Report. Check out the second tab, Production by region, and the report data on the right side of the page.
Here is the production for the three top regions, in average daily production for each month from January 2007 through September 2014. Data for the last three months is estimated.
Potentially another game changer for world-wide energy – – the Mexican legislature has changed national law to allow foreign investors to own oil reserves. This will draw the major oil companies with their talent, equipment, funding, and infrastructure. Speculation is oil production from Mexico could double in a decade.
Still some major obstacles, but the potential is huge. The Mexican government and her people could benefit tremendously. I really hope they handle this well, for their good and the good of everyone who uses energy.
Notice that the constant stories of the “energy crisis” isn’t in the news anymore. If you were around in the ‘70s you remember long lines to buy gas on your assigned even or odd day. Crisis stories continued for years, through the entire Carter administration and beyond.
Production of Bakken oil in North Dakota will soon hit one million barrels a day. When it does, it will be one of only 4 fields in the U.S. to hit that level. Those 4 are part of an elite group of only 10 super-giant fields.
I’m not sure if that estimate includes production from legacy wells. Even if it does and we back out September production of 65K bopd that only changes the date of crossing the 1M point by a month or so. That doesn’t matter for purposes of this discussion.
Their calculation shows Eagle Ford has already passed the 1M point. Permian production has been over the 1M point (again?) for a while and is at an estimated 1,340K bopd in December.
Along with Prudhoe Bay that makes four American fields that passed the 1M point.
Update: Why does the Eagle Ford shale field run across the border into Mexico but production stops at the Rio Grande? Political and economic issues depress production in Mexico. As I’ve long said, you don’t have to benefit from the energy under the ground.
He also goes into detail about the needs for local communities in boom areas to focus not just on roads, but the full range of infrastructure, such as K-12 schools, water treatment, hospitals & clinics, parks, and community meeting places. The full range of quality-of-life issues have a major role in people deciding where to live.
Wise local leaders will try to develop other industries that will sustain when there is a slowdown in energy. As a starter idea, he suggests higher end agriculture, such as raising olives and processing olive oil. Hunting, geothermal, water desalinization are other options.
Great video. Prof Tunstall’s section is about 10 minutes long. Well worth your time.
Initial report shows production in Eagle Ford was about 621,000 barrels a day during June.
I haven’t figured out how to either track or understand the reports on Eagle Ford oil. The initial data is revised higher as additional companies report their data. For example, from my notes the initial reports rise anywhere from 26k bopd (9-12) up to 90k bopd (1-13) when all the data is in. That means that final tally for June is likely to be anywhere from 650k to near 700k.