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World hydrocarbon supply ‘relatively boundless,’ SEG told

HOUSTON, Sept. 23

09/23/2013

By Alan Petzet
OGJ Chief Editor-Exploration

Geophysical advances have contributed to the identification of a
"relatively boundless supply" of oil and gas worldwide, Barry Smitherman,
chairman, Texas Railroad Commission (RRC), told the Society of Exploration
Geophysicists annual meeting Sept. 23.

Texas oil production alone, 1.76 million b/d in the first 6 months of 2013,
would rank third behind 2.9 million b/d of imports to the US from Canada
and 2.2 million b/d of imports from the Persian Gulf, Smitherman said.
Imports from Saudi Arabia would rank fourth.

Including natural gas liquids, Texas is producing well above 2 million b/d
of petroleum liquids and could double the figure by 2020 and triple it by
2025, Smitherman estimated.

The Eagle Ford shale alone is making about 600,000 b/d of oil, up from
nothing 5 years ago, and could attain 1 million b/d within a year.

The state issued more than 13,400 drilling permits in the first 6 months
and estimates that the 2013 total will reach a near record of more than
23,000, he said. RRC has reduced permitting time to 5 days/well and is
shooting for 3 days, he added.

Texas gas production fell to 20 bcfd in the first half, 5 bcfd of that from
the Barnett shale, from the record 22.6 bcfd in 2011. The Barnett has
yielded 13 tcf, and a recent study estimated its remaining potential at
44-80 tcf.

So much oil and gas have been located in unconventional formations
worldwide that the so-called “Peak Oil” web site has shut down, Smitherman
noted.

SEG, which had 9,400 people registered for the Houston meeting and expects
upwards of 10,000, has 40% of its members as US residents and only 5% of
student members in the US, said David Monk, SEG president.

Monk said 25% of SEG members express interest in near-surface geophysics.
The organization is building a new headquarters scheduled to open at the
end of 2014 in Tulsa.


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