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Massive Oil Discovery in Alaska is Biggest Onshore Find in 30 Years

Some 1.2 billion barrels of oil have been discovered in Alaska, marking the biggest onshore discovery in the U.S. in three decades.

Matt Egan reports: The massive find of conventional oil on state land could bring relief to budget pains in Alaska brought on by slumping production in the state and the crash in oil prices. 

The new discovery was made in just the past few days in Alaska’s North Slope, which was previously viewed as an aging oil basin.

Spanish oil giant Repsol (REPYY) and its privately-held U.S. partner Armstrong Energy announced the find on Thursday, predicting production could begin as soon as 2021 and lead to as much as 120,000 barrels of output per day.

The oil resources lie in a well, called Horseshoe, that’s 75% owned by Denver-based Armstrong. Repsol owns the rest of this well.

The discovery is 20 miles south of where the two companies have already found oil in a project known as Pikka. That northern project is already in early development and is 51% owned by Armstrong, which is the operator on both developments.

“The interesting thing about this discovery is the North Slope was previously thought to be on its last legs. But this is a significant emerging find,” Repsol spokesman Kristian Rix told CNNMoney. Read the rest of this entry »

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Independence: Oil Imports Decline as Shale Revolution Supercharges Production

Andrew Burton / Getty Images

Andrew Burton / Getty Images

“Oil production gains from the Bakken and Eagle Ford shale formations are a major reason why U.S. imports of crude oil have dropped to levels not seen since the mid-1990s.”

— Benteck Director of Energy Analysis Jack Weixel

HOUSTON, Aug. 21 (UPI) — Oil production from shale basins in North Dakota and Texas are the primary reason for a decline innorth-dakota-oil-boom_61135_600x450 U.S. oil imports, data published Thursday show.

“Total U.S. crude oil production reached 8.5 million barrels per day in July, the highest monthly level since April 1987.”

Bentek Energy, the analytical division of Platts, said July oil production from the Bakken area in North Dakota and the Eagle Ford shale play in Texas increased 3.4 percent year-on-year, or more than 86,000 barrels per day.

From AEI:

The chart below shows the combined daily oil output in America’s three most productive oil fields — the Bakken in North Dakota, the Eagle Ford Shale in south-central Texas and the Permian Basin in west Texas — from January 2007 to June 2014, based on estimates released by the EIA. From combined output of 1 million barrels of oil per day (bpd) in 2007, total crude oil production in those three oil fields will top 4 million barrels in June, based on drilling rigs data and EIA estimates of changes in production from existing wells…(read more)

shale oil revolution

“Oil production gains from the Bakken and Eagle Ford shale formations are a major reason why U.S. imports of crude oil have dropped to levels not seen since the mid-1990s,” Benteck Director of Energy Analysis Jack Weixel said in a statement Thursday. Read the rest of this entry »


Energy Boom: Texas Creeping up on Iraq’s Crude Oil Production

bigSpringPeakHOUSTON, Texas–For Breitbart.comKristin Tate reports: 3 million barrels of crude oil are now being produced in Texas each day, according to new federal data from the U.S. Energy Information Administration (EIA). This means that the state has almost reached the production level of Iraq, the second-largest oil producer in the Organization of Petroleum Exporting Countries (OPEC).

Texas’ oil production has been increasing rapidly in recent years: in 2009, the state only produced about 1.1 million barrels of oil. The gas and oil industry continues to explode in the Lone Star State, thanks in part to the Eagle Ford Shale and Permian Basin.

The EIA reported, “Gains in Texas crude oil production come primarily from counties that contain unconventional tight oil and shale reservoirs in the Eagle Ford Shale in the Western Gulf Basin, where 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.”

North Dakota’s oil production also saw an increase; the state produces about 1 million barrels per day. Read the rest of this entry »


America’s Amazing Shale Revolution in One Chart

oil2-600x387

For AEIdeas,  writes: The chart above shows the combined daily oil output in America’s three most productive oil fields — the Bakken in North Dakota, the Eagle Ford Shale in south-central Texas and the Permian Basin in west Texas — from January 2007 to June 2014, based on estimates released this week by the EIA. From combined output of 1 million barrels of oil per day (bpd) in 2007, total crude oil production in those three oil fields will top 4 million barrels in June, based on drilling rigs data and EIA estimates of changes in production from existing wells.

Oil production for each of America’s three super-giant elite oil fields are displayed separately in the chart below, with June production levels estimated at 1.068 million bpd in the Bakken, 1.42 million bpd in the Eagle Ford Shale, and 1.53 million bpd in the Permian Basin. Read the rest of this entry »


Raw Power: American Energy Booms On

north-dakota-oil-boom_61135_600x450

From The American Interest:  America is sitting pretty when it comes to energy production, and a new report suggests things will be getting even better. In its January Short-Term Energy Outlook, the Energy Information Administration bumped up its forecasts for U.S. oil and gas production. Oil output is set to hit a 43-year high next year, while annual natural gas production is expected to rise to an all-time high for the fifth straight year in 2015.

Even better, burgeoning domestic production means less of a need to import oil and gas. Natural gas imports are forecast to drop to a near 30 year low next year, and as the WSJ reports, America’s oil trade balance is at its healthiest state in 20 years:

The trade deficit in petroleum products hit a 2013 low in November, falling to $15.2 billion, according to seasonally adjusted data released by the Commerce Department on Tuesday. Adjusted for inflation in 2009 dollars, the gap between petroleum imports and exports is the lowest since at least 1994.

Read the rest of this entry »


Sweet Crude: Texas Oil Production Data Reveals Spectacular Gains

AP Photo/Hasan Jamali)

AP Photo/Hasan Jamali)

HOUSTON — Simone Sebastian reports: Oil production in Texas has hit its highest monthly rate on record, more than doubling in less than three years, according new federal data.

The state pumped 2.7 million barrels of crude per day during September, the highest monthly average since at least January 1981. Texas oil production had been declining since the U.S. Energy Information Administration’s monthly record-keeping began in 1981. But the tide abruptly turned in 2008 with the beginning of the shale oil and gas boom.

For 25 straight months, the state’s oil production rate has increased by more than 25 percent year-over-year, notes economist Mark J. Perry, a professor at the University of Michigan’s School of Management.

“Output in America’s  No. 1 oil-producing state — Texas — continues its phenomenal, meteoric rise,” Perry wrote on his Carpe Diem blog. “That production surge has to be one of the most significant increases in oil output ever recorded in the U.S. over such a short period of time.”

Read the rest of this entry »