Monday, August 6, 2012

While The Overall Economy Is Looking Dark, Oil And Gas Industry Is Looking Bright

Imagine what the production figures would look like if we had an Administration in Washington that actually supported the oil and gas industry instead of fighting it every step of the way?

An oil revolution is taking place in the US West and Mid-Continent


July 1, 2012
Fred Lawrence and Ron Planting, IPAA, Washington, DC
While the blockbuster plays in states such as Texas and North Dakota make the biggest headlines for increases in US crude oil production, there's no denying that developments in other states together add up to significant gains. Just like the other plays, many of these involved the technological advances of horizontal drilling and multi-stage hydraulic fracturing. The US map shown here indicates how widespread horizontal drilling has become.

Oil states

After North Dakota and Texas, there is a significant tier of states where crude oil production is increasing on a steady basis (See Figure 1). Six states in the western half of the US combined have increased US oil production by about 240,000 barrels per day (b/d) since early 2007. These include:
  • Oklahoma – Crude oil production has risen about 70,000 b/d from January 2007 through February 2012 (the latest available from the Energy Information Administration).
  • Colorado and New Mexico – Each saw increases of about 50,000 b/d over that period.
  • Utah and Kansas – Each had 30,000 b/d increases.
  • Wyoming – While Wyoming's net gain over the period was just 10,000 b/d, the state has seen a steady increase of twice that figure since bottoming out in mid-2009.
Since January 2007, these six states have increased crude oil production from a little more than 650,000 b/d to almost 900,000 b/d, an increase of nearly 37% collectively over a five-year span. This is roughly equivalent to the amount of oil produced by Colombia and Indonesia.

To read the remainder of the article click on the following link.