Must-Know: The 7 Regions for Oil and Gas Production in the US
The EIA (Energy Information Administration) monitors seven key tight oil and gas regions in the US.
July 9 2015, Published 10:56 a.m. ET
Key oil and gas regions
The EIA (Energy Information Administration) monitors seven key tight oil- and gas-producing regions in the US. These regions accounted for 95% of US oil production growth and 100% of the natural gas production growth in the US during 2011 through 2013. Light crude oil from shale or tight resource formations is commonly referred to as “tight” oil.
The above graph shows the growth in oil and natural gas production in the seven regions projected through July 2015. The key oil production regions include the Bakken, the Eagle Ford, the Permian Basin, and the Niobrara formation.
The key natural gas production regions include the Marcellus, Eagle Ford, and Haynesville shale formations, and the Permian Basin. The Niobrara formation also contributes significantly to the US’s natural gas production.
Growth in production
Advances in drilling technology led to a rise in oil production in the Bakken region from less than 200,000 barrels per day in 2007 to 1,200,000 barrels per day in 2015. The Eagle Ford region also witnessed growth from less than 100,000 barrels per day in 2007 to 1,600,000 barrels per day in 2015. Targa Resources (NGLS) and Plains All American Pipeline (PAA) are among the midstream companies operating in the region. Together, these two form ~12% of the Alerian MLP ETF (AMLP).
The Permian Basin is currently the largest crude-oil-producing basin in the US. Magellan Midstream Partners (MMP) and Energy Transfer Partners (ETP) are among the MLPs operating in the region. Next, we’ll take a deeper look into the region-wise natural gas production in the US.