The Eagle Ford remains resilient even in the midst of recent crude pricing volatility and analysts predict continued strength for the region.
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The research firm of Wood Mackenzie announced last week that the Eagle Ford Play leads other U.S. shale fields and continues to hold some of the most attractive oil and gas investments in the world. Even as producers slash budgets, spending in the Eagle Ford is projected to be around $20 billion in 2015.
“Thanks to lower oil prices being moderated by improved recoveries, our forecasted crude/condensate production of two million barrels per day in 2020 is largely unchanged from our last update, although the largest phase of growth will be pushed out due to slower activity in the near-term.”
As crude prices continue continue to stay low, Eagle Ford producers have been forced to tighten their budgets and change their strategies in order to stay competitive and forcing many to resort to extreme measures to save their bottom line.
U.S. crude oil prices had a crazy ride in August, hitting its lowest price of the 21st century before shooting back up almost $10 a barrel within three days. The commodity ended the month at close to $50.
Related: Crude Prices & the Stock Market: A Wild Ride
Eagle Ford production fell in May by 50,000 barrels per day and then increased slightly by 10,000 barrels a day from June to July. Average production throughout the region was 1.6 million b/d, about 17% higher than July 2014.
Read more at woodmac.com