If records are meant to be broken, Reese Energy Consulting predicts oil and gas production and LNG exports over the next two years are poised to leave 2018 in the wind-blown dust. Just last month, the USGS issued its first assessment of continuous resources in the Wolfcamp shale and Bone Spring Formation in the Delaware portion of the Permian. The findings described this area as the largest oil and natural gas reserve discovered in American history with “the largest continuous oil and gas resource potential ever”. The USGS estimates 46.3 billion barrels of oil, 281 TCF of natural gas, and 20 billion barrels of natural gas liquids lie beneath the surface. The EIA reported that crude production in 2018 reached its highest level and largest volume growth on record at 10.9 million barrels per day and is forecast to average more than 12 million this year and 12.9 million in 2020. In the last week of 2018, feedgas for LNG exports surpassed 5 billion cubic feet per day for the first time ever—an increase of 60% over 2017. Three additional LNG terminals are set to come online by year end. While 2018 may have been one for the history books, it appears we ain’t seen nothin’ yet. What do you think?
Posted on January 17, 2019