Yesterday I asserted shale is being underestimated in the press and public, and I received push-back from knowledgeable investors. The world has changed fast. Perhaps the estimates quoted and linked were aggressive. But not by much. “The Eagle Ford produced no oil in April 2008. This April it accounted for 4.6 percent of U.S. production.” The Texas RRC estimates May Eagle Ford production was 262,563 barrels of crude a day and April’s production was 279,000 bbl/d. Yet they are so far behind that April’s number was revised higher by 56,000 bbl/d. Oops. Expect May to be revised much higher too. Fuel Fix.
The Eagle Ford compares favorably with the Bakken: Oil & Gas Journal. Forbes piece on Continental’s (CLR) Harold Hamm: Forbes.
Cenovus Energy Inc. Target $44 for Bakken and Oil Sands Values at AMP 2012.
The shale boom is remarkable, but it is not a panacea for world oil production rates. The treadmill is too fast Exxon Mobil (XOM) and ConocoPhilips (COP) who reported second quarter production was lower by 5.6% and 6.5%, respectfully. Mighty Suncor (SU) is holding back in the oil sands and Shell scales back Arctic drilling plans at Fuel Fix.
Commentary: How much oil growth do we need to support world GDP growth? ASPO
Largest crude oil producers: API Who owns big oil? API
Margins by industry: API. Effective tax rates by industry: API.
Later today we’ll have more on natural gas with its relationship with coal.