Tue Dec 4, 2012, 10:29 AM
xchrom (104,686 posts)
The Most Profitable Oil Field In The World Is Right Here In America
But another huge factor is the Eagle Ford formation in Texas, which many believe has become the most profitable oil play in the world:
In August, research firm IHS said drilling results there appeared "to be superior to those of the Bakken" — 300 to 600 barrels-per-day for a peak month production average, compared with 150 to 300 barrels-per-day in North Dakota.
BHP Billiton CEO Michael Yeager says Eagle Ford wells cost $7 million to $10 million, but pay back within half a year (h/t Michael Giberson). "Fifty percent of every well is oil, and we get $100 a barrel for that oil," he said.
The Eagle Ford's proximity to the Gulf also gives it a huge advantage. According to Becca Followill of U.S. Capital Advisors LLC, moving oil by rail from the Bakken field in North Dakota can add $10 to $12 to the production cost per barrel.
Read more: http://www.businessinsider.com/tour-of-the-eagle-ford-shale-2012-12?op=1#ixzz2E63nMVpq
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The Most Profitable Oil Field In The World Is Right Here In America (Original post)
Response to xchrom (Original post)
Tue Dec 4, 2012, 07:19 PM
happyslug (12,346 posts)
1. Compare this is Spindletop in 1901, 100,000 barrels per day in 1901 lasted till 1936
600 barrels per day is a puddle compared to Spindletop and how long will this oil field produce?
East Texas oil Field had over 7 billion barrels of oil in it, 5.2 billion has been pumped:
East Texas Oil field first well was in 1930, By 1931 the East Texas Oil Fields were producing over 900,000 barrels per day.
For the year 1933 The East Texas Oil Field had produced 148,325,961 barrels (over 406,000 barrels per day.
For the end of 1934 it had produced 216,291,397 barrels of oil (over 592,979 barrels per day).
Just compare 600 barrels per day to 592,979 barrels per day you get an idea how SMALL this oil field is (and how large was East Texas).
East Texas is HALF the size of the North Slope of Alaska, which at its peak produced over 1.5 MILLION Barrels of oil per day (through down to 660,000 barrels per day today):
Just to keep in mind how SMALL this field is, yet it is the BIGGEST oil field coming on line.