iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Commodities Buzz: Crude Oil Output In Texass Eagle Ford Region Rising Since February 2022

29 Aug 2022 , 03:45 PM

The US EIA stated in a latest update that according to latest Drilling Productivity Report, crude oil production in the Eagle Ford region in southern Texas will average 1.2 million barrels per day (b/d) during September 2022. Despite recent increases, less crude oil is being produced in the Eagle Ford region than before the pandemic—1.4 million b/d in April 2020—and much less than the all-time high of 1.7 million b/d in March 2015. Because prices increased, EIA estimates that economically recoverable oil resources (the amount of recoverable oil that producers believe can be profitably produced) in the Eagle Ford formation, increased to 8.4 billion barrels in the first half of 2022, an increase from 0.5 billion barrels in 2020. Between 2020 and the first half of 2022, crude oil prices more than doubled, according to our analysis, incentivizing future development in previously marginal areas. This analysis of the Eagle Ford formation focuses on proved reserves and economically recoverable resources. Proved reserves are volumes of crude oil and natural gas that data demonstrate with reasonable certainty can be recoverable in future years from known reservoirs, considering existing economic and operating conditions. In contrast, economically recoverable resources vary considerably depending on price and cost assumptions. Economically recoverable resources represent a less certain estimate of future crude oil and natural gas volumes and production. If prices are too low to provide a return on the investment of developing the well, producers will not invest in drilling the well. The Eagle Ford formation produces both crude oil and natural gas, so profitability is not only based on past crude oil or natural gas production rates but also on producers’ forecasts of future prices for natural gas and crude oil.Powered by Commodity Insights

Related Tags

  • capital market
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.