As a company who serves the crude production industry, we are interested in seeing how this industry is performing. Currently, Iraq is the world’s No. 3 oil producer and Texas is expected to surpass it. HSBC predicted it will exceed OPEC members Iran and Iraq by 2019. Not only would it surpass Iraq, but be right behind Russia and Saudi Arabia. The rise of Texas oil and the U.S. pumping more oil than ever before — which makes the U.S. less reliant on the Middle East.
Where is the Largest Crude Production Located?
Texas’ Permian Basin is home to over 40% of all active U.S. drilling production and receives the most credit for the rapid growth of crude production in the U.S.. Texas also has Eagle Ford, another large oilfield in the south. According to HSBC, the combined output from Permian and Eagle Ford could rise from 2.5 million barrels per day to 5.6 million barrels per day in 2019. Right now, Iraq’s daily production is about 4.8 million barrels, and Iran projected at 3 million. But, due to sanctions from the U.S., Iran oil supplies will most likely plunge. Currently, Texas is experiencing pipeline shortages which are hurting local prices. Some oil companies are tapping the brakes to avoid growing too fast in a constrained system. Another issue is the cost to service oilfields, and the prices have risen to 15% for some companies.
But, Texas isn’t the only significant producer in the U.S., Pennsylvania is close behind. The Marcellus Shale play has been setting record levels of domestic natural gas production. The Marcellus Shale is producing more oil than before — and its accredited to improved technology. Now, drillers can extract more gas for each well pad.
- Shale plays are located all over the U.S., but there are a few critical plays you should watch. Other plays involved in the oil boom are:
- Ohio’s shale natural gas production has risen by 43% due to a combination of the Marcellus and Utica Shale wells.
- The Department of Mineral Resources in North Dakota reported that the state’s crude production increased by over 5% and that oil companies developed drilling rigs that are twice as efficient as they were in 2014.
- The Texas Cheniere Energy’s Sabine Pass LNG had a resurgence in production from the Haynesville Shale region.
- The Colorado DJ Basin has seen oil grow by about 10,000 barrels per day every month and expects this to continue in 2018.
- The Gulf of Mexico oil and gas production in deepwater is expected to reach a record high with 1.9 million boepd, which is a 13% growth year of year.
Technology and Strategies
New technology will help tap massive new reserves of energy and reduce environmental risk. In an industry that uses technology in many aspects, from reducing costs to create robots to run drill rigs — they are taking it further by strategizing the future of crude production.
During the crude production stage, companies are collecting data to conduct preemptive maintenance on critical components. Reliability creates the most significant return on investment.
There is a massive hype around blockchain for the oil and gas industry. Blockchain makes sense in different scenarios and is transforming the way energy is bought and sold.
Now before a worker flies out to the crude oil platform, they can walk through that platform virtually to learn where everything is and how the process responds.
Liners for Crude Production
We developed our reinforced polyethylene liners with specialty geosynthetic material that follow the requirements for the EPA for the oil, gas, and mining industries. We provide liners for the crude oil pits, containment, and also help protect the environment and preserve your product during the transportation and storage stage.
As you can see the boom is expanding all across the country with Pennsylvania and Texas as the two states benefiting the most from the oil and gas industry growth. While energy independence could be the future of the U.S., it is interesting to watch the trends in technology and jobs for this industry. BTL Liners support the new era of economic growth and energy independence of North America. For more information about our liners for the oil and gas industry please contact us or get a quote, we’d be happy to help supply your needs.