Powerhouse: History of the Eagle Ford Shale

The economic recession hit the U.S. hard in 2008. But it was during this time that a blessing in the form of a shale came for Texas, helping the state get back up on its feet and outperform most of the states economically the subsequent years.

The Eagle Ford Shale is named after the town of the same name where outcrops were first observed. It is a sedimentary rock formation that produces hydrocarbon substances, such as oil and natural gas. It is of utmost significance due to its production capacity, which is greater than many other traditional shale plays.

Image source: wsj.com

Since its discovery in 2008, thousands of wells have been drilled on the 50-mile wide and 400-mile long shale that has a depth of approximately 4,000 to 12,000 feet. Innovation in oil extraction resulted in effective techniques such as horizontal drilling and hydraulic fracturing. And because of such technology, Eagle Ford Shale has been producing 1.5 million barrels of oil per day as of December 2015.

Image source: saconxepts.biz

The shale is believed to have been formed in the late Cretaceous period. Ninety million years later, its contribution to the economy of the state and the entire nation is unmatched. Based on capital invested, it ranks as the largest oil and gas development in the world. And hundreds of thousands of jobs were, directly and indirectly, created, because of the powerhouse that is the Eagle Ford Shale.  

Brian Alfaro is the founder and president of Primera Energy LLC, an oil and gas industry leader in Texas with major operations in the Eagle Ford Shale. Read more about the industry when you visit this blog.

US oil production at its finest since 1972

In 2008, the United States was producing an estimated four million barrels of crude oil per day and importing more than twice that amount from other countries. This oil was then refined into useful substances such as gasoline, kerosene, heating oil and other products. But, even though the country produces a lot, it is not enough. To keep up, oil companies keep looking for new sources of petroleum, and improving ways of extracting oil from these.

Image Source: news.forexlive.com

Since 2008, US crude oil production has been seeing a steady rise, 80 percent to be exact, and it is forecast to reach its highest level, since 1972, in the coming year, according to U.S. Energy Information Administration gave the forecast.

The United States has already overtaken Saudi Arabia and Russia in crude oil production this year, when the country has already reached 11 million barrels of oil produced daily, just in the first quarter.

Image Source: bizjournals.com

The reason behind this surge can be found in Texas and North Dakota where shale formations provide the best locations for oil extraction. Oil companies split rocks using high-pressure liquid. This process is known as hydraulic fracturing, or fracking. Texas and North Dakota are now responsible for almost half of the total US oil production.

Image Source: usnews.com

With the conflicts in Iraq continuing to affect oil production and oil supply rising locally, it is expected that the U.S. will loosen its dependence on oil exports from this country in the coming years. Although there has not been a significant change in oil prices in the global market, changes will soon come in the following years.

Headed by Brian Alfaro, Primera Energy, LLC operates its oil business in Southern Texas. Learn more about the company here.