Valero Says Eagle Ford Crude Production to Reach 500,000 b/d by Year-End

Is it 500,000 b/d Today or Year-End? Either Way, We're Going There Fast

Valero’s CEO says Eagle Ford “crude” production will likely surpass 500,000 b/d by year-end 2012. He went on to say producers have told him that production will likely reach 1 million b/d in the next few years and will back out sweet crude imports from other countries. The industry is getting more confident that 1 million b/d of Eagle Ford production will be here sooner than later.

The projection for 500,000 b/d of crude by year-end comes just a week after the EIA projected production of 500,000 b/d of crude and condensate in April. From speaking with industry professionals, I’m confident the EIA’s numbers were higher than actual production and might have included NGLs. Either way, we’re on a quick path to half a million barrels per day. I’m digging a little deeper and will have more for you in the coming weeks.

The EIA provides a great service, but I trust Valero’s projections as they are one of the largest crude buyers in the world. It’s their business to know what is going to feed their refineries.

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R.T. Dukes

R.T. Dukes

Managing Editor at EagleFordShale.com
R.T. is the managing editor of EagleFordShale.com. In prior roles, he advised major oil companies on strategy, the macro business environment, and opportunity screening. 2503 Robinhood, Houston, TX, 77005, U.S.A. | Telephone: 832.429.4790

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