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U.S. Tight Oil Production 2017

U.S. Tight Oil Production. Eagle Ford, Bakken, Spraberry, Bonespring, Wolfcamp, Niobrara-Codell, Woodford, Austin Chalk, Marcellus, Utica, Emanuel Martin

The total Tight Oil production in the United States in the month of August 2017 was 4,75MMbbl per day being the main producing fields Eagle Ford with 1,17MMbbl/d, Bakken with 1,02MMbbl/d, Spraberry with 0,93MMbbl/d, Wolfcamp with 0,55MMbbl/d, Bonespring with 0,35MMbbl/d and Niobra-Codell with 0,33MMbbl/d according to the monthly report submitted by the U.S. Energy Information Administration (EIA). These six shale plays produce 91,7% of the total tight oil production in the U.S.

Author:

Emanuel Omar Martin

Published online: 10/29/2017

© Creative Commons

United Stated Tight Oil Production 2017 by porcentages, Utica, Delaware, Yeso & Glorieta, Eagle Ford, Bakken, Spraberry, Bonespring, Wolfcamp, Niobrara-Codell, Haynesville, Marcellus, Woodford, Emanuel Martin.

Figure 1 shows the United Stated Tight Oil Production in percentages. We can see here in an easy way which are the main Tight Oil producers in U.S.: Eagle Ford, Bakken, Spraberry, Wolfcamp, Bonespring and Niobrara-Codell are the six bigges tight oil players in the United State controlling 92% of the total tight oil production in USA with Eagle Ford, Bakken and Spraberry producing near the 66% with 3,13 MMBbl per day.

U.S. historical production of Tight Oil

The historical production of Tight Oil in the United States had a smooth beginning with a constant production during the first years and since 2005 the implementation of the horizontal drilling combined with multi-stage hydraulic fracturing technology impulse the growth of production.

The recovery in the oil price from January 2009 produced a constant and aggressive increase in drilling activity in all Tight Oil Fields achieving an eight-fold increase in crude production in only six years from 0,57MMbbl/d in January 2009 to a maximum of 4,70MMbbl/d in March 2015. From this value the oil production has begun to decline month after month to have reached 4,11 MMbbl/day in September 2016 as a result of the great disinvestment produced in the drilling activity after the barrel price fall in August 2014.

United Stated Historical Tight Oil Production 2017, Utica, Delaware, Yeso & Glorieta, Eagle Ford, Bakken, Spraberry, Bonespring, Wolfcamp, Niobrara-Codell, Haynesville, Marcellus, Woodford

Figure 2 shows the historical tight oil production in United Stated by Play.

With the increase in the oil price since the middle of 2016 the production has begun to recover reaching in August of this year 4.75MMbbl/day, which is set as a new world record in the shale oil production.

Historical drilling activity in the United Stated together with the WTI crude oil spot 2009-2017

Figure 3 shows the historical drilling activity in United Stated together with the WTI crude oil spot. We see here how the drilling activity is matching perfectly the curve of the WTI prices and how the oil companies make the investments (in macro scale) to develop the oil fields in function of the oil prices (Source: EIA, Baker Hughes, Bloomberg).

Historical monthly production of Tight Oil by play:

Eagle Ford Tight Oil

The Eagle Ford Tight Oil Play is the biggest tight oil producer in the U.S. It’s located in the Texas State and it’s divided in three areas: dry gas, gas condensate and oil and there are more than 200 companies working in the play in 2017.

The well features vary between counties and operators throughout the play but despite of this all of them have followed the tendency to increase the lateral length of the wells and the number of hydraulic fracturing stages; thus obtaining an increase of the Estimated Ultimate Recovery (EUR) and a significant reduction in operating costs making the play more competitive.

Well types:

  • Freedom Oil & Gas reported a well type this year with a lateral length between 6000ft and 8000ft with 30 to 40 hydraulic fracture stages using 1200-3200 pounds/ft of sand obtaining EURs from 550MBoe to 695MBoe for a price of $4 to $5 million dollars (respectively) per well.
  • Murphy Oil Corporation also reported the well type with lateral length from 5000ft to 8700ft and 20 to 33 fracture stages obtaining EURs from 385MBoe to 600MBoe for an approximate price of $4,2 million dollars.
  • Carrizo reported a well type in August of this year in the Play Core with a lateral length of 6300ft with 31 hydraulic fracture stages obtaining a EUR of 553MBoe for a price of $4,0MM. In the Tier 1 the company well type has a lateral length of 6400ft with 32 hydraulic fracture stages obtaining a EUR of 403MBoe for a price of $4,2MM.

The Eagle Ford break even prices for tight oil production are between 28 to 45 dollars per barrel (WTI).

Eagle Ford Historical Tight Oil Production, Emanuel Martin

Figure 4 Eagle Ford tight oil Production August 2017.

The large-scale development of the play began in 2010 from which it had a sustained growth reaching a maximum production of 1,63MMbbl/d in March 2015 and since this month it started to decline reaching a minimum production of 1,08 in December of 2016. With the increase of the oil price the activity in the play started to grow again reaching 1,17 MMbbl per day in August of this year, 30% less than the maximum level of production reached in March 2015.

Bakken Tight Oil

The Bakken Tight Oil Play is the second biggest tight oil producer in the U.S. It’s located in the North Dakota and Montana States.

The main operators working in the play are Statoil, ConocoPhillips, Marathon, Continental, XTO Energy, EOG Resources, HESS Corporation and Whiting Petroleum.

The well type between counties and companies has (in average) a lateral length from 6000ft to 10000ft with 25-30 fracture stages using 3,5 to 4,6 MM lbs of proppant and 3 to 4,4 MM gallons of fluid giving a EUR between 420MBoe/well and 800MBoe/well for a price from $6,5 to $12 million dollars (Continental Resources-Abraxas 2017).

Bakken Historical Tight Oil Production, Emanuel Martin

Figure 5: Bakken tight oil Production, August 2017.

The large-scale development of the play began in 2005 from which it had a sustained growth reaching a maximum production of 1,20MMbbl/d in June 2015 and since this month it started to decline to reach 0,93MMbbl per day in December 2016. With the recovery of the oil prices the production is growing slowly with 1,02 MMbbl per day in August of this year.

Spraberry Tight Oil

The Spraberry Tight Oil Play is the third biggest tight oil producer in the U.S. It’s located in the Texas State in the Midlan Basin and the main companies working in the play are Pioneer Natural Resources, Encana Corporation, Diamondback, Parsley Energy, Laredo Petroleum Inc, XTO Energy, Apache and Concho Resources.

Well type:

In the play the companies drilling vertical and horizontal wells as follow:

  • The average vertical well (Well type) are drilled to a depth of 9000ft with 8 frac stages using around 0.8 MM Lbs of proppant and 0,8 MM gallons of fluid with an average EUR of 185,136Boe and a cost of $2,5MM (Energen and Diamondback 2016).
  • Encana Corporation reported this year (2017) a new horizontal well type with a lateral length of 7500ft with an EUR of 1020MBoe for a cost of $5,4 Million dollars and an operative cost of $7/Boe.
  • Pioneer Natural Resources reported this year the new well type with a lateral length of 9500ft using 2000-3000 lbs/ft of proppant and 50 bbls/ft of fluid given an EUR of 1,0MMBoe for a price of $7,5 Million dollars (production costs per well are between $4/Boe and $5/Boe).
  • Old well design has a lateral length of 4500-5000ft and an EUR of 700MBoe.

The Spraberry break-even price for the tight oil production is around 24 dollars per barrel making its production highly competitive against other tight oil and better than the North Sea oilfields (WTI, Pioneer Resources 2017).

Spraberry Historical Tight Oil Production, Emanuel Martin

Figure 6: Spraberry tight oil Production, August 2017.

The large-scale development of the play began in 2010 from which it has maintained a sustained growth reaching a current production of 0,93MMBcf/day in August of this year.

Wolfcamp Tight Oil

Wolfcamp Tight Oil Play is the fourth biggest tight oil producer in the U.S, It’s located in the Texas and New Mexico States and the top companies working in the play are ExxonMobil/XTO, Concho Resources, Anadarko Petroleum/JV Partner (Shell), Noble Energy, Jagged Peak Energy, Centennial Development and Occidental Petroleum.

Well type:

  • The Wolfcamp well type are different between companies and in average it has a lateral length of 5578ft with 20 frac stages per well using 6,2 MM Lbs of proppant and 6,6MM gallons of fluid given an EUR from 500 to 641MBoe by a cost between 5,5 and $7,7MM per well.
  • Encana Corporation reported well type with a lateral length of 7500ft and a cost of $5,6 million dollars with an Estimated Ultimate Recovery of 1100MBoe and operative cost from $11 per boe to $7 per Boe.
  • Carrizo reported a well type for Wolfcamp A and B with a lateral length of 7000ft with 42 frac stages for a cost of $8,2MM with an EUR of 1539MBoe and 1272Mboe respectively.

The Wolfcamp break-even prices for the tight oil production are between 27 and 32 dollars per barrel (WTI, Pioneer Resources 2017).

Wolfcamp Historical Tight Oil Production, Emanuel Martin

Figure 7: Wolfcamp tight oil Production, August 2017.

The large-scale development of the play began in 2011 from which it has maintained a sustained growth reaching a current production of 0,55MMBcf per day in August of this year.

Bonespring Tight Oil

Bonespring Tight Oil Play is the fifth biggest tight oil producer in the U.S, It’s located in the Texas and New Mexico States.

Well type:

  • EOG Resources reported in October 2016 a well type with a lateral length of 7000ft and an EUR of 950MBoe for a price of $7,3 million dollars.
  • Oxy reported this year a well type with a lateral length of 4500ft with 19 frac stage using 1,700lbs/ft sands and 165Mbbl SW for a cost of $6,6MM with and operative cost between 7 and 9USD.

Bonespring Historical Tight Oil Production, Emanuel Martin

Figure 8: Bonespring tight oil Production, August 2017.

The large-scale development of the play began in 2010 from which it had a sustained growth reaching a maximum production of 0,32MMbbl/d in September 2015 and since this month it started to decline to 0,27 MMbbl/day in September 2016. With the increase of the oil price the activity in the play started to grow again reaching a 0,35 MMbbl per day in August of this year.

Niobrara-Codell Tight Oil Play

Niobrara-Codell Tight Oil Play is the sixth biggest tight oil producer in the U.S. It’s located in Colorado and Wyoming States being the mains companies working in the play Anadarko, Noble Energy, PDC Energy, EOG Resources, Carrizo and Synergy Resources Corporation.

Well type:

The well features vary between counties and operators throughout the play so we’re going to show the well type of two companies in order to have they as a reference.

  • XOG reported a well type in Codell with a lateral length of 6800ft using 2000-3000lbs/ft of sand and a EUR of 611MBoe by a price of $3,50MM; in Niobrara the well type has a lateral length of 6800ft using 2000-3000lbs/ft of sand and a EUR of 575MBoe by a price of $3,96MM.
  • Murphy Oil Corporation also reported the well type with a lateral length from 5000ft to 8700ft and 20 to 33 fracture stages obtaining EURs from 385MBoe to 600MBoe by a price of $4,2 million dollars.

The Niobrara break-even price for the tight oil production is around 34 dollars per barrel (WTI, Chesapeake Energy 2017).

Niobrara-Codell Historical Tight Oil Production 2017 Emanuel Martin

Figure 9: Niobrara-Codell tight oil Production, August 2017.

The large-scale development of the play began in 2010 from which it had a sustained growth reaching a maximum production of 0,335MMbbl/d in January 2015 and since this month it started to decline to reach a minimum production of 0,27MMbbl/d in February 2017. With the increase in the oil price there was a recovery of the drilling activity together with the oil production level which reached 0,33bcf per day in August of this year.

Woodford Tight Oil

Woodford Tight Oil Play is the seventh biggest tight oil producer in the U.S. It’s located in Oklahoma State in the Anadarko, Ardmore and Arkoma Basins.

Well types:

  • Well designs are diverse between companies and normally it has a lateral length between 4500ft and 10000ft with an EUR from 650MBoe to 1,600Mboe for a cost ranging from $4 million to $13 million dollars.
  • Continental Resources reported in October 2016 for SCOOP Woodford a well type with a lateral length of 9800ft an EUR of 1700MBoe for a price between $9 and $11 million dollars. On the other hand the company reported a well type in SCOOP Springer with a lateral length of 4500ft an EUR of 940MBoe for a price of $7 million dollars.

The Woodford break-even price for the tight oil production is around 27-29 dollars per barrel (WTI, Pioneer Resources 2017).

Woodford Historical Tight Oil Production 2017 Emanuel Martin

Figure 10: Woodford tight oil Production, August 2017.

The large-scale development of the play began in 2012 from which it had a sustained growth reaching a maximum production of 92,9Mbbl/d in November 2015 from which it has started to decline to reach 77,3Mbbl per day in August of this year.

Austin Chalk Tight Oil

Austin Chalk Tight Oil Play is the eighth biggest tight oil producer in the U.S. It’s located in Texas and Louisiana States and there are more than 100 oil operators working in the play this year.

It’s a play with more than 100 years of history in the USA oil production, since it isn’t a shale itself if not is a conventional oilfield but in the places with very poor petrophysical properties the well production is increased using lateral well and multi stages of hydraulic fracture. This new technology (massive frac stages) gave to the play a new life increasing its production from 35,4MBbl per day in May 2013 to 69MBbl per day in August of this year.

Austin Chalk Historical Tight Oil Production 2017, Emanuel Martin

Figure 11: Austin-Chalk tight oil Production, August 2017.

Well type:

Murphy Oil Corporation (09-2016) reported a well type with lateral length of 5000ft with a EUR of 450 MBoe for Karnes County and 415MBoe for Catarina County by a cost of $5Million dollars.

Utica Tight Oil

The Utica Tight Oil Play is the ninth biggest tight oil producer in the U.S. It’s located in the Ohio, Pennsylvania and West Virginia States (active areas) and the four Top Companies working in the play are Chesapeake Energy, Consol Energy, Gulfport Energy and Antero. The average well has a lateral length between 8200ft and 9800ft using 2900lbs/ft of sand with a cost of $11Million dollars.

Utica Historical Tight Oil Production, Emanuel Martin

Figure 12: Austin-Chalk tight oil Production, August 2017.

The large-scale development of the play began in 2012 from which it had a sustained growth reaching a maximum production of 80,2Mbbl/d in April 2016 and since this month it started to decline having a current production of 46,75Mbbl/d in August of this year.

Historical U.S. Tight Oil Production Monterey, Austin Chalk, Granite Wash, Woodford, Marcellus, Haynesville, Niobrara-Codell, Wolfcamp, Bonespring, Spraberry, Bakken, Eagle Ford, Delaware

Figure 13 Tight Oil Production per month and play.

Reference:

  1. U.S. Energy Information Administration (EIA). https://www.eia.gov/
  2. Pioneer Resources http://www.pxd.com/
  3. Continental Resources www.contres.com/
  4. Chesapeake Energy www.chk.com/
  5. Murphy Oil Corporation www.murphyoilcorp.com/
  6. Extraction Oil & Gas
  7. EOG Resources http://www.eogresources.com
  8. Encana Corporation
  9. Carrizo Oil & Gas, Inc.
  10. Freedom Oil & Gas

U.S. Tight Oil Production 2017

The total production of tight oil in the United States in the month of August 2017 was 4,75MMbbl per day being the main producing fields Eagle Ford with 1,17MMbbl/d, Bakken with 1,02MMbbl/d, Spraberry with 0,93MMbbl/d, Wolfcamp with 0,55MMbbl/d, Bonespring with 0,35MMbbl/d and Niobra-Codell with 0,33MMbbl/d according to the monthly report submitted by the U.S. Energy Information Administration (EIA). These six shale plays produce 91,7% of the total tight oil production in the U.S.
Emanuel Martin
Emanuel Martin is a Petroleum Engineer graduate from the Faculty of Engineering and a musician educate in the Arts Faculty at National University of Cuyo.
http://www.allaboutshale.com

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