Wood Mackenzie projects dominant role for U. S. upstream | Russell T. Rudy Energy LLC
Phjani Gadde with the consulting group Wood Mackenzie addressed the recent North American Prospect Expo in Houston. According to a recent article in “Rigzone”, Phjani stated that global upstream spending is, and will continue to be, dominated by North America in general, and the U. S. in particular.
With global outlays projected at about $625 billion, fully a quarter of this is expected in the U. S. and $72 billion of this on tight oil development. These investments, and subsequent production increases, are scheduled for Eagle Ford (South Texas), Bakken (North Dakota) and Permian Basin (West Texas) shale projects. In turn Wood Mackenzie anticipates tight oil production in the U. S. to reach 8.6 million barrels per day (bopd) by the end of the decade. By then the Eagle Ford will be producing 2 million bopd, the Bakken 1.7, and the Permian Basin over 1.1 .
Wood Mackenzie sees the Northeast dominating the domestic natural gas market in terms of both supply and demand. Industrial demand will increase but so will supply. By 2020, it is anticipated that the Marcellus shale will increase production to 21 billion cubic feet per day (bcfd) from the current rate of 12.8. With supply and demand expected to increase at approximately the same rates, natural gas prices would remain stable at $3-4 dollars per thousand cubic feet.
To read the article in its entirety, please go to www.rigzone.com/news/oil_gas/a/134673/Wood .
