Carpe Diem

Texas Eagle Ford Shale map and oil production chart

The map above shows the large Eagle Ford Shale area, which is 50 miles wide and 400 miles long, and covers 23 counties in South-Central Texas, according to the Railroad Commission of Texas – the state agency that regulates the oil and gas industry in the Lone Star State.  The first Eagle Ford Shale well was drilled in 2008, and the chart above shows the explosive growth in Eagle Ford oil production since then, which has increased to roughly 327,000 barrels per day this year, far more than double the output in 2011. The recently-discovered oceans of hydrocarbon-saturated shale rock below the Eagle Ford Shale area of Texas (including dozens of “monster wells”) are the main reason for the explosive growth in crude oil production in the Lone Star State – which has doubled in just the last few years to more than two million barrels per day, see CD post here.

2 thoughts on “Texas Eagle Ford Shale map and oil production chart

  1. This was the same type of hype that we heard about the Barnett Shale formation. As drilling exploded so did production and everyone was telling us about a new era in hydrocarbon production. The problem was that the era was dependent on ultimate production estimates that did not come true. As a result of the optimistic assumptions the companies were able to write off their investments over a much longer time period than they should have and the reported losses were far lower than they actually turned out to be. The same thing is happening in other formations as drilling activity means an explosion in production but not real profits for the shale companies that are producing the oil and gas. Eventually the undepreciated assets will have to be written off and the profits will have to be restated to reflect what we have seen on the balance sheet and cash flow statements. When that happens Mark will try to claim that he was only reporting facts as provided by the EIA, TRC, and other institutions but will have a hard time explaining why as an economics professor he stayed away from what he should know best; the actual economics of production.

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