• 1 hour South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 4 hours Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 5 hours Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 6 hours Iraq Steps In To Offset Falling Venezuela Oil Production
  • 8 hours ConocoPhillips Sets Price Ceiling For New Projects
  • 3 days Shell Oil Trading Head Steps Down After 29 Years
  • 3 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 3 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 3 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 3 days Venezuela Officially In Default
  • 3 days Iran Prepares To Export LNG To Boost Trade Relations
  • 3 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 4 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 4 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 4 days Rosneft Announces Completion Of World’s Longest Well
  • 4 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 4 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 4 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 4 days Santos Admits It Rejected $7.2B Takeover Bid
  • 5 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 5 days Africa’s Richest Woman Fired From Sonangol
  • 5 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 5 days Russian Hackers Target British Energy Industry
  • 5 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 5 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 5 days Lower Oil Prices Benefit European Refiners
  • 5 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 6 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 6 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 6 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 6 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 6 days OPEC To Recruit New Members To Fight Market Imbalance
  • 6 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 7 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 7 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 7 days GE Considers Selling Baker Hughes Assets
  • 7 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 7 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 7 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 7 days BP CEO Sees Venezuela As Oil’s Wildcard
Goldman: Automated Trucks To Cost 300k Jobs Per Year

Goldman: Automated Trucks To Cost 300k Jobs Per Year

The race for automated trucking…

Markets Shrug On Flat Oil Rig Count

Markets Shrug On Flat Oil Rig Count

The United States oil rig…

Texas Set To Overtake Iraq In Oil Production

Texas Set To Overtake Iraq In Oil Production

America’s increasing reliance on hydraulic fracturing to recover energy trapped in shale will soon lead Texas to generate more oil than Iraq, OPEC’s No. 2 producer.

Texas produced just over 3 million barrels a day in April for the first time in nearly four decades, according to a new report by the U.S. Energy Information Administration (EIA). That accounted for 36 percent of the United States’ total production for the month -- 8.4 billion barrels per day.

Iraq, meanwhile, produced an estimated 3.2 million barrels a day in April.

The EIA report said Texas’ output has more than doubled overall in the past three years and has risen every month since 2011. Therefore, the report concluded, Texas is soon expected to out produce Iraq.

The EIA attributed the increased production to the Eagle Ford Shale in West Texas. There, it said, “drilling has increasingly targeted oil-rich areas, and multiple reservoirs within the Permian Basin in West Texas that have seen a significant increase in horizontal, oil-directed drilling.”

Another reason, of course, is hydraulic fracturing, or fracking. The United States was the first country to exploit the practice to extract both gas and oil from shale. As a result, U.S. energy production now makes up more than 10 percent of total world production, according to the EIA.

The report says the United States will be producing more oil than it uses, and so will become a net exporter of oil by 2020.

Related Article: Black Gold: U.S. States Where Oil Is King

Meanwhile, other West Texas oil fields are contributing mightily to Texas’ oil production and immediate economic future. A recent report by the Institute for Economic Development at the University of Texas-San Antonio said the economic output from West Texas Cline Shale would rise by $20.5 billion by 2022.

Thomas Tunstall, the institute’s research director, said his study focused on 10 counties in the eastern part of Texas’ oil-rich Permian Basin, somewhat removed from the center of the region’s oil and gas recovery activities.

“One of the things we find is there are three significant shale formations in the Permian Basin: the Wolfberry/Spraberry, the Cline and the Wolf Camp,” Tunstall said. “Most of the activity right now is targeted on the Spraberry formation, west of our study area, although we expect to see a lot of that activity move eastward over to the Cline Shale over time.”

The EIA’s drilling productivity report for June estimated that gas production was flat at just over 1.5 million barrels a day, but that gas production was up from 5.48 billion cubic feet per day in May to 5.62 billion cubic feet per day in June.

And by 2022, the EIA report said, oil and gas development will create 30,000 jobs in the region, at a value of $20.5 billion.

By Andy Tully of Oilprice.com



Join the discussion | Back to homepage

Leave a comment
  • todd cory on July 05 2014 said:
    net or gross?
  • bmz on July 04 2014 said:
    Contrary to what is suggested, the EIA did not say that the U.S. would become a net oil exporter.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News