Amidst falling crude prices and dire predictions about the future of the industry, Wood Mackenzie announced that Eagle Ford reached an impressive milestone in November as production topped one billion barrels. Over the past two years, production in the Eagle Ford play has exploded and elevated the area as a major force in the world energy market.
“It puts the Eagle Ford in elite company on the world scale. It makes it even more clear that this is a world-class play.”
The boom in shale production from Eagle Ford began in 2008 as horizontal drilling was introduced in La Salle County and now encompasses a 30 county area across South Texas. The national impact of Eagle Ford shale cannot be overstated, and it is estimated that 16% of total U.S. oil is now coming from the play. Analysts predict that production will remain high through 2015. Energy research consultancy IHS estimates U.S. shale production will grow by 700,000 b/d at an average price of $77 per barrel in 2015.
In additional to Eagle Ford’s contribution to the global market, it is likely that the greatest benefit from this historic drilling boom is being experienced by local Texas communities. Billions of investment dollars are bringing jobs and economic growth to many small Texas towns and revitalizing formerly depressed areas.
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