Underestimating shale revolution again?
The Texas shale revolution will not last forever.The EIA has a history of underestimating the shale revolution in Texas and elsewhere. The Eagle ford formation produced more oil in the first few years then were projected for production in the first 10 years. It also tends to underestimate the increased efficiency of US shale drillers.
U.S. shale and tight oil production will increase to more than 6 million barrels per day in the coming decade, making up most of total U.S. oil production, according to a recent report by a branch of the U.S. Department of Energy.
U.S. shale oil production has increased significantly since 2010, driven by technological improvements that have reduced drilling costs and improved drilling efficiency. In 2015, oil companies pumped 4.9 million barrels per day out of shale and tight oil fields and, for the first time, made up more than half of total U.S. oil production.
But a report by the Energy Information Administration now says tight oil production will flat line after 2026 as drillers move into less productive oil fields and well productivity decreases.
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South Texas’ Eagle Ford will begin to decline after 2020; North Dakota’s Bakken after 2030, the report says. Production in West Texas’ Permian Basin, which is larger and deeper, remains strong through 2040.