The Future Of U.S. Oil: Wolfcamp And The Gulf Of Mexico
Mark Perry links to the latest EIA data suggesting that the U.S. has now become the largest producer of petroleum liquids in the world.
This includes liquids that are extracted from natural gas wells (natural gas liquids). Traditionally, natural gas liquids have traded at prices similar to crude oil and from an economic standpoint were best understood as part of the oil supply, though that has changed due to the surge in U.S. production.
Nonetheless, U.S. production of petroleum is going through the roof. North Dakota's Bakken formation retains marque status in America's oil boom even as it plays a less important role. Increasingly, production out of Texas, particularly the Eagle Ford shale, is driving America's record output.
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