Texas Shale Oil Play May Steal North Dakota’s Thunder
If you’re going to be talking about the shale oil energy boom in America, you’re going to be talking about North Dakota and the Bakken oil fields. Production there as catapulted North Dakota to the #2 spot in the nation for oil production, behind only Texas.
But not only will North Dakota not be taking over Texas’ spot on the rankings any time soon, the state has a shale oil play of it’s own that may steal a lot of the Bakken’s thunder.
A new report from IHS Global Insight (as noted by Professor Mark J. Perry) suggests the Eagle Ford play near San Antonio, Texas, is poised to overtake the Bakken as the country’s most promising oil reservoir:
“Our analysis at IHS indicates that Eagle Ford drilling results to date appear to be superior to those of the Bakken,” said Andrew Byrne, director of equity research at IHS and author of the study. “Although the well counts aren’t nearly as high at this point in development of the Eagle Ford, the peak of the well-distribution curve compares favorably with the Bakken.”
The firm found Eagle Ford sites capable of producing around 300 to 600 barrels-per-day for a peak month production average, compared with 150 to 300 barrels-per-day for the Bakken. The Eagle Ford also has better average peak-month production rates.
North Dakota’s political leaders may yet live to regret voting down former Governor Ed Schafer’s proposal to lower ans simply North Dakota’s oil extraction tax. That proposal was attacked during the legislative session last year as being too oil friendly, yet a lot of the production that is plowing revenues into state coffers may up and move down south.
Texas has better weather, better infrastructure, more available workers, a friendlier tax environment and now, it appears, a much better oil play.Tags: bakken, North Dakota News, oil