Oil production Increases in second-largest shale field in the United States
Oil production in South Texas, home to the country’s second largest shale field, is expected to rise by up to 4% this year as higher prices encourage more drilling and US crude exports set new highs.
According to US government data, output in the Eagle Ford shale field decreased in 2020 but has since recovered, with an average monthly increase of approximately 17,000 barrels per day (bpd) in the second half of 2022. Its gains will help to keep US output rising as the country’s largest shale field, the Permian basin, has slowed significantly in the last year.
According to Alexandre Ramos-Peon, Rystad Energy’s head of shale well research, output in the Eagle Ford will increase by 25,000 to 40,000 barrels per day.
In a report, Housley Carr, an analyst at RBN Energy, said, “Over the past few months, oil and gas production in South Texas have been showing new signs of life.”
The number of rigs drilling for oil in the Eagle Ford increased to 69 in the week ending January. 13, the highest since March 2019, up from 43 a year ago, according to the most recent Baker Hughes data.
Devon Energy Corp closed a $1.8 billion deal in September that doubled its presence and increased the proportion of oil from its Eagle Ford wells to 60% from 49%, according to RBN Energy.
SilverBow Resources Inc agreed to acquire holdings from Sundance Energy and SandPoint Operating last year, increasing its Eagle Ford acreage by approximately 60,000 net acres, according to RBN Energy.
According to Chief Executive Ezra Yacob, EOG Resources Inc, one of the region’s largest producers, has achieved its highest rate of return in nearly 15 years.
Producers will have more buyers for their gas because the Eagle Ford is near existing and proposed liquefied natural gas terminals.
According to the Energy Information Administration, Eagle Ford oil production is expected to reach 1.2 million barrels per day in February, the highest level since April 2020.
Nonetheless, the Eagle Ford has traditionally been one of the more fragmented oil and petrol areas, with more private than public companies.
Andrew Dittmar, director at Enverus Intelligence Research. He stated that publicly traded companies deploy fewer rigs.
“(Mergers and acquisitions) have been fairly muted and remain fairly fragmented,” he added.
Source: Energy Ghana