What Impact Would a Fed. Acreage Frack Ban Have?
If fracking activity was to be eliminated on federal acreage, the result would be a widespread shift of capital from federal to private and state-owned acreage in a bid to replace lost oil volumes.
That’s what recent analysis conducted by Rystad Energy suggests, according to the company, which outlined that such a fracking ban would likely have little immediate impact on nationwide oil and gas production figures.
“Even in the long-term, the impact might be quite negligible as seen from the greater industry perspective,” Artem Abramov, head of shale research at Rystad Energy, said in a company statement.
Abramov added, however, that such a ban “could have stronger negative effects on one key shale producing region in particular – the New Mexico portion of the prolific Permian Delaware Basin”.
Oil production from federal lands surpassed one million barrels per day during the summer of 2019, doubling over the most recent two-year period, Rystad Energy revealed. New Mexico accounted for the largest share of oil production growth in 2018-2019, the company added.
Cimarex and Chevron exhibit the highest recent focus on federal land in New Mexico, with 87-90 percent of activity happening there, Rystad Energy highlighted.
In September last year, Rystad Energy emphasized that U.S. shale is not going bankrupt.
“Despite a wave of financial adversity that has tormented U.S. onshore E&P companies lately, Rystad Energy does not view this as a harbinger of doom for the shale industry going forward,” the company said in a statement at the time.
Earlier in September, Rystad Energy forecasted that U.S. shale supply will peak at approximately 14.5 million barrels per day around 2030.
Rystad Energy describes itself as an independent energy research and business intelligence company. The business is headquartered in Oslo, Norway, and has offices all over the globe.
To contact the author, email andreas.exarheas@rigzone.com
WHAT DO YOU THINK?
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.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension