A new report published by the Post Carbon Institute concludes that Texas’ Eagle Ford Shale basin, the most prolific shale oil basin in the U.S., has peaked and reached terminal decline status.
Might the shale boom be coming to an end in the next two years?
A lot has been made in the media about how rapidly oil production is increasing in North Dakota due to development of tight oil in the Bakken Shale region of the state. Less has been made of the rapidly increasing oil production in Texas. According to United States Department of Energy/Energy Information Administration (US DOE/EIA) data, oil production is rising faster in Texas than it is in North Dakota: a 523,000 b/d increase for Texas versus a 243,000 b/d increase for North Dakota in 2012, relative to 2011, based upon US DOE/EIA data as of 2/28/13.
The real challenges—and costs—of 21st century fossil fuel production suggest that such vastly increased supplies will not be easily achieved or even possible. The geological and environmental realities of trying to fulfill these exuberant proclamations deserve a closer look.This report provides an in-depth evaluation of the various unconventional energy resources behind the recent "energy independence" rhetoric, particularly shale gas, tight oil.
Since the IEA presented its World Energy Outlook report of 2012 the world’s press has spread the news that the USA can become a larger oil producer than Saudi Arabia. They have also reported on increased production of shale gas. During recent years production of shale gas has increased so greatly that the price of natural gas has fallen to levels where it is no longer profitable to drill new wells. I have previously described how drilling rigs are leaving the shale gas fields. Today, the Oil&Gas Journal reported that, “Oil prices rise in mixed market but gas ‘falls off cliff’”.