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Hail Shale
Old Texas Oil Fields Boom Anew

Crude production in Texas’s Permian Basin has nearly doubled over the past seven years, and producers in the West Texas region expect to squeeze out even more oil in the coming years. What’s changed? In a word: fracking. The WSJ reports:

One of the state’s oldest oil fields, the Permian Basin in West Texas, is booming again, thanks to advanced technologies such as hydraulic fracturing and horizontal drilling. And Permian oil output shows no signs of stopping at its current 1.7 million barrels a day. […] The hot, new Bakken oil field in North Dakota pumps about 1 million barrels a day now. The Eagle Ford in South Texas: 1.5 million.

Texas has plenty of oil services and infrastructure to bring crude to market, but even the Lone Star State is struggling to keep up with the rapid pace of the shale boom:

The Permian is producing more oil than local pipelines can handle. Count on the next couple of years being full of pipeline planning, construction and community fights. Trains full of crude also will continue to rumble out of towns like Wink, Texas, to California and the Gulf Coast.

Across the country, oil and gas production is booming. Hydraulic fracturing and horizontal well drilling have set off an energy revolution in North Dakota and South Texas, unlocking previously fallow oil fields, but as we’re seeing in Texas’s Permian Basin, those dual technologies are also squeezing more crude out of already productive regions.

This flood of hydrocarbons is boosting our economy and lowering our dependence on foreign supplies, and both of those trends look set to continue as American innovation remakes our energy future.

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  • Duperray

    It is a good new for everybody, less money reaching Middle East suppliers means less money to terrorists.

  • Fat_Man

    If the Shia Sunni war escalates any further, it might result in a closure of the Straits of Hormuz. In that event oil would double in price. It would devastate the EU, China, and Japan. But the US would be OK. Oil producing states would prosper at the expense of oil consuming states like NY and CA. It would be a severe test of their environmentalist religion and their desire to keep men from wounding their mother goddess, Gaea.

    • rheddles

      The US would not prosper if the price of oil doubled. It would cause an enormous recession. And oil producing states would not necessarily benefit. The boom they are currently experiencing would grow even greater and booms are inevitably followed by busts.

      • Fat_Man

        Better to have boomed and busted than never to have boomed at all.

      • Fat_Man

        I think that a deep recession that afflicts the Bos-Wash and CA would be a good thing. They have sucked up too much of the nations prosperity and the time has come to redress the balance.

  • Josephbleau

    Every played out oil well ever drilled from 1860 on in Pennsylvania to Ohio, Ill, KY, OK KS LA TX NM UT CA CO and Canada and Mexico is waiting for enhanced secondary recovery. Add the shale plays and supply will not bust for a looong time. Price will fluctuate a bit within a more stable market. Add gas and I predict a movement of medium and heavy industry to the US that will actually create good low and high skill middle class jobs at the expense of the EU and China. Labor and energy are equally summed in final cost. Once the people in the US who need to work get a taste of this ( they can get a bass boat and send the kids to school) the trust babies and “intellectuals” will not be able to hold the poor back anymore, Gaia’s needs not withstanding.

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