Dec 9 (Reuters) - If prices had not crashed over the
past five months, the oil market would have moved into a
substantial surplus in the first half of 2015, according to a
review of drilling and production statistics from major shale
plays in the United States.
The pace of drilling and production growth in the Eagle Ford
and Permian Basin shale plays in Texas, which together with
North Dakota's Bakken account for most of the increase in U.S.
output since 2008, was accelerating in the first eight months of
The combined crude output from the Eagle Ford and Permian
Basin surged by 400,000 barrels per day (b/d) in the eight
months, compared with an increase of 288,000 b/d in the previous
eight-month period, according to records published by the
Railroad Commission of Texas, which regulates the industry.
In August 2014, total production of crude and condensates
from the two plays topped 2.5 million b/d, up from 1.1 million
just three years earlier. Combined output was higher than some
members of OPEC.
And the industry was preparing to increase output even
further. Exploration and production companies were adding more
drilling rigs, especially in the Permian Basin, where the number
of rigs in operation exceeded 460 throughout the summer, up from
less than 400 in 2013, according to Baker Hughes, the oilfield
Record numbers of applications for permission to drill new
wells were being filed with the Railroad Commission. In
September 2014, regulators issued almost 2,000 new permits for
oil or combined oil and gas wells, up from less than 1,000 in
the same month a year earlier.
Last updated : 14 Sep 2019
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