Texas field set for 2mn barrels a day by 2020
Eagle Ford Formation also likely to attract $20bn investment this year
The Eagle Ford formation in Texas is forecast to produce 2mn barrels of oil per day by 2020, while investment in the field is likely to total $20bn this year, according to Wood Mackenzie.
The firm said that production growth from the Eagle Ford is proving resilient to the slowdown, with sweet spots emerging across all active sub-play areas.
Latest analysis found that its core areas still hold some of the most attractive oil and gas investment opportunities in the world, with companies increasing production beyond 2014 averages and active rigs yielding more.
Furthermore, while capex cuts have been drastic across the upstream landscape, the Eagle Ford remains the focus of North America tight oil development, attracting spend of around $20 billion in 2015.
“Thanks to lower oil prices being moderated by improved recoveries, our forecasted crude/condensate production of two million barrels per day in 2020 is largely unchanged from our last update, although the largest phase of growth will be pushed out due to slower activity in the near-term,” said the research note.
“Three core sub-plays (Karnes Trough, Edwards Condensate and Black Oil) account for around 75% of the play's remaining NPV10 and will be the source of much near-term growth as operators retrench to core areas.”