Tuesday, February 25, 2014

Saudi American

Two items of interest in the petroleum production sector. Thanks for the information Mark Perry [Professor of economics at the University of Michigan].

"For the 12th month in a row starting in November 2012, “Saudi America” took the top spot again in October as the No. 1 petroleum producer in the world. Also, for the 12th straight month, total petroleum production (crude oil and other petroleum products like natural gas plant liquids, leased condensate, and refined petroleum products) in the US during the month of October at 12.77 million barrels per day (bpd) exceeded petroleum production in No. 2 Saudi Arabia (11.82 million bpd)... During the 2004 to 2008 period before America’s shale boom started, Saudi Arabia was routinely producing 20-30% more petroleum than the US. But when America’s shale revolution started in 2009, there was a surge of nearly 50% in the supply of petroleum produced in the US and America surpassed Saudi Arabia at the end of 2012 to become the world’s No. 1 petroleum producer." and "In October, the US produced more petroleum products (12.77 million bpd) than the combined petroleum output of all of the countries in Europe, Central America, and South America (11.82 million bpd) for the fifth straight month".

The second item of interest is the following from Schlumberger [almost went to work for them before I graduated undergrad school]:

"New ‘broadband sequence’  fracturing technology increases shale output by 20% and cuts well completion time in half" and broadBand sequence fracturing technique has enabled customers in South Texas to increase production from new completions in unconventional reservoirs by more than 20%. It has also reduced well completion time by up to 46% in plug-and-perf operations by stimulating longer intervals compared with conventional methods. In addition, this technology was applied to a well in South Texas for a refracturing operation, which resulted in double the production with a fourfold increase in flowing pressure."

I like the term that is used, "Saudi America"...and this with no increase of production on federal lands.....lot of private land owners are making some good money....


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