Known for its outstanding shale drillers, the United States once again made a good impression when it broke another record in oil production. Recent reports say it is generating up to 10.619 million barrels of oil per day. This is primarily due to one area called the Permian Basin.
Since 1921, the Texas-based oilfield has been producing shale oil or tight oil. It is proving worldwide that there is an abundant supply. The sedimentary basin also known as the West Texas Basin can be found in the western part of Texas and the southern part of New Mexico.
The International Energy Agency (IEA) is a well-known organization that secures affordable and clean energy for its members. It recently reported that the total oil production worldwide is estimated to increase to 6.4 million barrels per day by 2023. The United States is responsible for 60 percent of that projection, all thanks to the Permian Basin.
According to Rob Thummel, Managing Director at Tortoise, the Permian Basin has a gigantic size of the oil deposits. Also, it is in the continuous usage of heightened technology and competencies.
Enhanced oil recovery, multi-stage hydraulic fracturing, and horizontal drilling are just some of the technological applications that Permian Basin is using.
Thummel added, “The technology is the biggest driver. The basin in and of itself could end up being the largest oil field in the world even bigger than Ghawar in Saudi Arabia.” To date, Ghawar is the largest oilfield on Earth and is located in Al-Ahsa Governorate, Eastern Province, Saudi Arabia.
One company that helps the Permian Basin produce more oil is Encara. The Calgary-based firm has been producing, transporting, and selling natural oil and gas from the Permian Basin. Critics say that the method of Encana called ‘The Cube’ could make the reserves of America last longer. ‘The Cube’ has the capability to target various layers at the same time.
The bold action of the Permian Basin has resulted in benefits that would definitely impact society. America would become independent by cutting off some of its oil imports. The country could also provide high-paying jobs in communities, and could reduce the customer prices of gasoline for as low as 37 percent.
Beating Some of the Leading Countries in Oil Production
Late last year, the United States was able to dethrone Saudi Arabia as the second leading producer of oil worldwide. In 2018, America is optimistic that it will snatch the top spot away from Russia. Its output in oil production is high. It can deliver a market record of 10.98 million barrels of oil every day.
The United States Energy Information Administration (EIA) forecasted that the Northern American country would have the capability to produce 11 million barrels of oil per day by the end of 2018. This would end the reign of Russia.
In a report, IEA mentioned, “All the indicators that suggest continued fast growth in the U.S. are in perfect alignment; rising prices leading, after a few months, to more drilling, more completions, more production, and more hedging.”
Because of its oil production success, the US is expanding its oil exports. The country is now gaining traction after it penetrated the largest and fastest growing markets in Asia.
Permian Basin Getting Help from Other U.S. Oilfields
Surely, the Permian Basin is becoming the most important place in the U.S. for oil production. The success as a whole is also because of the presence of other oilfields based in America.
Aside from the Permian Basin, the Bakken Formation is also another important source of oil production in the US. The basin drills most of its oils in North Dakota and extends to Montana. It has an abundant source of rock for oil. Bakken Formation has a record of producing 1.23 million barrels of oil per day.
The Eagle Ford Group, also known as the Eagle Ford Shale mainly consists of marls with interbedded thin limestone and organic matter-rich fossiliferous marine shales. Eagle Ford contains unusual gas and oil in the US. It generates around 1.3 million barrels of oils per day.
These are just some of the oilfields that help the Permian Basin make America the number one producer of shale oil on Earth.
Experts believe that the US has the capability to continue its record-breaking streak in oil production.
Moreover, America’s oil market could reach its full potential if shale drillers and authorities step up their game.