U.S. is World’s Largest Oil Producer

Texas Contributes More than 1/4 of Total U.S. Crude Production
U.S. Oil Production

U.S. Oil Production | Click to Enlarge

The U.S. is now the world’s largest producer of oil, surpassing Russia and Saudi Arabia, according to Bank of America Corp. (BAC), as reported in Bloomberg.

U.S. crude oil output in the first quarter surpassed 11-million b/d, which was the highest volume produced by the country in 24 years. The U.S. is expected to hold the top spot through the end of the year, BAC officials said.

Most of that production is coming from Texas and North Dakota, which produced nearly half (48%) of all U.S. oil in April of 2014, according to the Energy Information Administration (EIA). Texas alone produced nearly 3-million b/d in the same month, thanks largely to the Eagle Ford Shale, reaching production levels not seen since the 70s.

Read more: Texas Oil Production Reaches Levels Not Seen Since the 70s

According to the International Energy Agency (IEA), U.S. oil output will increase to 13.1 million b/d in 2019 and plateau. Most analysts agree the Eagle Ford and Bakken Shale plays, which are largely responsible for production in Texas and North Dakota, will peak around this time, and begin to decline.

Oil Inventories Stacking Up

With the glut of oil being produced in the U.S., crude inventories on the U.S. Gulf Coast (USGC) have recently climbed to record levels according to the EIA, hitting 207.2 million bbl on April 11, 2014. The EIA says the USGC region has about 275 million bbls of current capacity, but more midstream projects pushing oil to the USGC have been scheduled.

To accommodate the influx of oil into the region, several crude oil storage projects are expected along the USGC through 2016. Recently, Haddington Ventures LLC, a midstream oil and gas investment firm, was identified in a Wall Street Journal (WSJ) blog as the designer/builder for a major crude oil storage project in Houston, TX.

Read more: Crude Supply Creates Demand for Storage Projects on USGC

Overall, the challenges that have come and will continue to come with the oil & gas renaissance in the U.S. seem to be outweighing most of the negative impacts. Namely, U.S. energy independence is the most favorable outcome, with tensions growing in Russia and unrest in the Middle East. The EIA predicts the U.S. will be energy independent by 2035.

Six Eagle Ford Counties Rank as Top U.S. Oil Producing Areas

Karnes County is the Top Oil Producer in Texas
Top Oil Producing Counties in U.S.

Top Oil Producing Counties in U.S. | Click to Enlarge

According to recent data from consultancy DrillingInfo, half of all U.S. crude oil production comes from just 20 counties/development areas.

Included in the list are six Eagle Ford counties: Karnes, LaSalle, Dewitt, Dimmit, Gonzales and McMullen. Four counties in North Dakota covering another major shale play, the Bakken Shale, were also included.

The 20 counties/development areas covered make up only 2% of all oil producing counties across the country, but accounted for 52% of all oil production. Karnes County, which is the top oil producing county in the state, ranked at number seven on the list.

See below for a full list of Eagle Ford counties included in the DrillingInfo report and their respective ranking and daily production data:

  • Karnes (7) – 214,000 b/d
  • LaSalle (9) – 141,000 b/d
  • Dewitt (13) – 133,000 b/d
  • Dimmit (14) – 117,000 b/d
  • Gonzales (15) – 116,000 b/d
  • McMullen (19) – 88,000 b/d

In July of 2014, the Energy Information Administration (EIA) predicts the Eagle Ford Shale will produce 1.429 million b/d of crude oil and other liquids. That’s approximately 24,000 b/d over June production, according to the EIA’s most recent Drilling Productivity Report. By 2020, some analysts predict the Eagle Ford will reach  two-million b/d of crude and condensate production.

Since the Eagle Ford oil boom began in 2009, more than 14,000 drilling permits have been issued by the Texas Railroad Commission (RRC) in the play. Permitting peaked in 2012 and 2013 in the top producing Eagle Ford counties, and has started to decline. According to the RRC, in 2013, there were 2,521 producing oil leases on schedule.

Murphy Oil’s Eagle Ford Production Grows to 39,000 boe/d in 2013

Company-wide, Oil Production Increased to ~135,000 boe/d
Murphy Eagle Ford Production

Murphy Oil’s Eagle Ford Production Growth | Click to Enlarge

In 2013, Murphy Oil originally planned Eagle Ford production of ~30,000 boe/d, but the company blew through that goal and produced an average of 39,000 boe/d for the year. [Read more…]

U.S. Headed For Energy Self-Sufficiency – Exxon CEO – Video

Significant Oil Production Growth Expected For 2-3 Years

Exxon Mobil’s CEO Rex Tillerson believes the U.S. will be self sufficient and energy secure by 2020. The country is the largest natural gas producer in the world and is producing oil at rates not seen since the 1980s.

Production of crude oil is expected to continue growing over the next few years and Tillerson thinks it’s “realistic” that the U.S. will be secure in energy by the end of the decade. Watch more below: [Read more…]

Rosetta Resources Plans to Spend $735 Million in the Eagle Ford in 2014

Production Growth of 20-30% Expected in 2014
Rosetta Resources Eagle Ford Acreage Map By Area

Rosetta Resources Eagle Ford Acreage Map By Area | Click to Enlarge

Rosetta Resources will spend approximately tw0-thirds of its $1.1 billion budget in 2014 in the Eagle Ford.

The company will spend $735 million running 4-5 rigs, with plans to drill and complete 90-95 gross wells. Approximately half of the activity will target the Eagle Ford from the company’s Gates Ranch leases.

Read more: Rosetta Acquires Additional Eagle Ford Interests at Gates Ranch

As a result of Eagle Ford and Permian Basin growth, Rosetta expects production to grow 20-30% to 60,000-65,000 boe/d. [Read more…]

Marathon Oil Expects to Exit 2013 Producing 100,000 boe/d from the Eagle Ford

Drilling & Completion Costs Are Down More Than 20% Since Q3 2012
Marathon Oil Eagle Ford Acreage Map & Improving Well Performance

Marathon Oil Eagle Ford Acreage Map & Improving Well Performance | Click to Enlarge

Marathon Oil’s Eagle Ford production averaged more than 90,000 boe/d at the end of October and is on pace to eclipse more than 100,000 boe/d by year-end 2013. Another important note is that more than 70% of oil production is now being transported by pipelines. [Read more…]