Finance & Investing
News Services
Newsletters
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy
pledge.


advertisement

Eagle Ford Production to Keep Growing Through 2014

change text size
Article title
Production from the Eagle Ford unconventional oil play in South Texas is expected to keep growing through 2014 and to break the 1.5 million barrel per day mark in 2015.

Production from the Eagle Ford unconventional oil play in South Texas is expected to keep growing through 2014 and to break the 1.5 million barrel per day (bpd) mark in 2015, an analyst told attendees at the Platts’ North America Crude Conference in Houston Feb. 27-28.

Between now and the end of 2018, 4.4 million barrels of crude are expected to be produced in North America, said Suzanne Minter, manager of crude and natural gas analysis with Bentek Energy. In 2013, 1.2 million barrels per day (bpd) of crude production was grown; crude production this year will exceed that number, Minter noted.

While infrastructure projects will bring this crude production to market, little has been done to grow incremental demand in the North America Lower 48 market, Minter noted. For this reason, the light crude market should be pretty aggressive and competitive in the near-term; by year end, Bentek believes that North America crude production will have pushed out all light sweet waterborne imports, Minter said.

Last year was phenomenal in terms of oil production. In 2012, North America crude production grew 10 percent year over year; in 2013, it grew 17 percent year over year to 1.4 million bpd. This growth comes on the heels of decades of consistent but gradual decline, Minter said. North America crude production has experienced a “strong, quick” reversal to the steady, gradual decline previously seen in oil production.

“For every barrel we produced, we have pushed out one corresponding barrels of crude, which says that, in 2013, we imported 1.2 million bpd less than in 2012,” said Minter.

Bentek anticipates the production boom to continue, with lots of natural gas liquids and crude oil coming online, based on the number of rigs active in the middle of the North American continent. The rig count declined from 2011 to 2012, yet production increased. In 2013, more rigs were brought back into the fleet because demand and prices incentivized operators to do so. This increase in the rig fleet will bring even more production online, Minter noted.

Most North America plays win in terms of initial rates of return (IRR). Light condensate will continue to lead production growth, but notable growth also is occurring in heavy crude production, Minter noted.


12345

View Full Article



Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

WHAT DO YOU THINK?

Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


More from this Author
Karen Boman
Senior Editor | Rigzone.com
 -  Analyst: Foreign Investment in US Shal... (Jul 22)
 -  Analyst: Oil, Gas CAPEX Spending to En... (Jul 21)
 -  Virtual Tools Close Gap between Remote... (Jul 14)
 -  US Legislators Introduce North Atlanti... (Jul 11)
 -  Artificial Intelligence Software Aids ... (Jul 10)
Most Popular Articles
From the Career Center
Jobs that may interest you
Proposal Coordinator
Expertise: Business Development
Location: Houston, TX
 
Proposal Manager
Expertise: Business Development, Sales and Marketing
Location: Houston, TX
 
District Manager
Expertise: Business Development, Operations Manager, Safety Officer
Location: Rife,, CO
 
search for more jobs