Which States Are Behind US Shale?
Oct 26 2019 Read 897 Times
When it comes to hydraulic fracturing, the United States is divided. While states like New York, Vermont and Maryland have banned largescale fracking projects, Southern and Midwest counterparts such as Texas, New Mexico and North Dakota are spearheading the US shale oil revolution. Unsurprisingly, all three states are sitting on huge oil reserves.
Since 2008, shale oil projects in the United States have provided a 150% boost to domestic crude production, which now sits at around 12.4 million b/d. Oil-rich states are leading the revolution, with the Bakken Formation oil field in North Dakota and the Permian Basin and Eagle Ford play in Texas accounting for 85% of US shale production and 60% of total US crude oil production.
Shale boom shelters US from turbulent markets
None show signs of slowing down, with the EIA reporting that Bakken output has increased by 25% since the beginning of 2018. The Permian is up by 55%, while Eagle Ford has enjoyed a 10% increase. In New Mexico, crude production has soared by more than fivefold since 2008, with the state now churning out around 0.9 million b/d.
While fracking is plagued with serious environmental concerns, analysts have applauded Texas, North Dakota and New Mexico for saving American drivers from a major crude price spike following drone attacks on Saudi Arabia. The attacks wiped up to 6% of the world's oil supply off the market, though thanks to significant shale output increases, the United States was barely unaffected.
Permian Basin set to emerge as fourth largest oil producer in the world
For producers, there are still lucrative growth opportunities in regions like the Permian Basin. Over the next five years new pipeline projects will help to reduce differentials and increase production. Analysts predict such activity could see the Permian could soon emerge as the fourth largest oil producer in the world, with the potential to produce more than 6 million barrels a day by 2025. This would put the Permian in league with top-tier producers like Saudi Arabia, which currently produces 11.5 million barrels a day.
While Permian producers are hopeful new pipelines will boost output, expansion always comes with complications. For a closer look at how engineers are working to minimise the risk of spills, don't miss 'Thermal Imaging Provides Early Leak Detection in Oil and Gas Pipelines' which spotlights innovative technology from Canadian video analytics specialist, IntelliView.
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