[credit provider=”Google Earth”]
Oil companies will pour $28 billion into Texas’ Eagle Ford formation next year, reports MySanAntonio’s Jennifer Hiller.This is according to a new study from energy research firm Wood Mackenzie.
It’s equivalent to 27 per cent of the industry’s capital investment in the lower 48 states next year will go to the Eagle Ford, she says.
By 2015, the industry will have invested $115 billion, she reports.
The study also put that figure in perspective:
In terms of overall investment, from 2012 through 2015, Wood Mackenzie expects capital expenditure in the Eagle Ford to surpass the projected capex of the entire Kashagan project in Kazakhstan, the world’s most expensive standalone energy project.” The latest figures show the Kashagan project will require a total capital investment of US$116 billion.
The Eagle Ford’s popularity stems from its liquids-rich character. An expert cited by Hiller compares the ease with which oil and liquid natural gas can be tapped to squeezing water from a sponge.
If you have water in a sponge, you can get the water out more easily,” he said. “If you have honey in a sponge it’s a lot more difficult to extract.”
Its position near the Gulf also makes it highly lucrative — and could help immunize it from falling oil prices.