Oil markets are increasingly skeptical…
Despite having taken more than…
A new analytical study by Wood Mackenzie has predicted that capital expenditure in the Eagle Ford shale formation in 2013 will reach $28 billion. That will be equal to a quarter of all the money invested in oil exploration in the entire US (less Alaska).
Most of the $28 billion will be invested around the Gonzales, Kernes, and DeWitt Counties, which together produce more than 50 percent of daily US liquids production.
One of the most expensive shale formations in the world to develop is the Kashagan project in Kazakhstan needing an estimated $116 billion, yet Wood Mackenzie have suggested that between 2012 and 2015, capital expenditure in the Eagle Ford will surpass that in the Kashagan.
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Callan McMahon, an analyst from Wood Mackenzie, said that, “definitely, it’s the spot to be. We see that with activity being very heavily concentrated in that area.”
The three largest players in the Eagle Ford formation are EOG Resources, BHP Billiton, and ConocoPhillips. It is suggested that Eagle Ford now makes up 38% of EOG’s value, and about 20% of BHP Billiton’s portfolio.
The Eagle ford offers dry natural gas, thick oil, and light oil, however few people are drilling for natural gas at the moment due to the incredibly low prices.
By. Joao Peixe of Oilprice.com
Joao is a writer for Oilprice.com