IHS: U.S. Shale Growth Still Strong, Despite Lower Oil Prices

~ 80% of Potential Drilling in 2015 Would Remain "Resilient" at $70 per Barrel
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The dip in oil prices isn’t making a huge impact yet on the vast majority of U.S. shale production.

According to a report by research consultancy IHS Energy, most shale plays areĀ economic and ~80% of potential drilling in 2015 would remain strongĀ at WTI crude oil prices as low as $70 per barrel.





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BP’s Bob Dudley Shares His Energy Thoughts – IHS CERAWeek

US Oil Supply Growth Is Helping Meet Increasing Worldwide Demand

BP’s Bob Dudley addressed the crowd at IHS CERAWeek to share the company’s view of the industry industry. Mr. Dudley described the global energy journey and his view of the role of the US & Russia in the energy future. [Read more…]

Eagle Ford Shale Contends for #1 Spot Among Shale Oil Plays

Eagle Ford wells IP at double the rates of Bakken wells with half the horizontal lateral length

The Eagle Ford’s promising economics are not news to anyone in South Texas, IHS reported promising results from a study the research company has underway. Eagle Ford wells are producing better than the Bakken Shale of North Dakota and Montana.

A typical well in the Eagle Ford averages 300 to 600 barrels-per-day (bpd) in its peak month of production, compared with 150 to 300 bpd for a Bakken well, according to the study.

Current Eagle Ford production is just half that of the Bakken, but the ND shale play had a 10-year head start. A little over 200 rigs are drilling in the Bakken vs. ~250 in the Eagle Ford. It’s also worth noting that horizontal laterals are consistently 10,000 ft in the Bakken. That’s roughly double the most common lateral length in South Texas. That means the Eagle Ford is out producing the Bakken with as little as half the reservoir contact. [Read more…]

Eagle Ford Oil Boom – Natural Gas Slump – EagleFordShale.com Quoted

Eagle Ford oil potential has kept drillers interested and even shifting capital to the play over the past year. Both oil and gas prices are up over the past few weeks, but comparatively $92/bbl is much better than $3/mcf. Read the entire article that details rig activity and production growth at chron.com [Read more…]

Big Firms Say Shale Plays Are Here To Stay

“Shale gases have redefined natural gas supply” is the quote from Hill Vaden of Wood Mackenzie. As large scale firms enter shale plays across the U.S., it is an indication that things have changed for the long term. The Kinder Morgan – El Paso merger is the latest shale driven deal that expands a companies foot print and leverage to the growing shale boom.

With Exxon and international companies like Statoil in the fray, you can bet many of the development decisions that are made today are part of long – very long term plans. Shale plays are ushering in a new wave of domestic development. Just visit North Dakota, Pennsylvania, or Texas if you don’t believe me. [Read more…]

U.S. Oil Production Growth Expectations Continue To Rise

U.S. oil production is expected to rise more than 2 million barrels per day by 2015. That’s from a new report written by Bentek that was released after the National Petroleum Council’s Production Report last week. The bulk of production will be added by the Bakken, Eagle Ford, and other plays in West Texas. IHS predicts that same oil growth could fuel the addition of 1.3 million jobs and add $97 billion in tax revenues.

I think it’s safe to say all three, production, jobs, and tax revenues, should be welcomed during this economic climate. [Read more…]