Nov 28 Crude oil extracted from the United
States shale formations is not likely to flood the global market
because only the Eagle Ford and Bakken formations are driving
significant growth, EOG Resources Inc's chief executive
Mark Papa said on Wednesday.
From 2011 to 2015, EOG expects U.S. oil production will grow
only 2 million barrels per day to 7.7 million barrels, driven
mostly by higher output from the Eagle Ford in South Texas and
the Bakken in North Dakota, Papa told the Jefferies Global
Energy Conference in Houston.
The Eagle and Bakken accounted for more than 80 percent of
U.S. crude oil extracted from shale and other rock from 2005 to
2012, while other basins like the Woodford and the Mississippian
have produced little crude, Papa said, citing data from energy
consulting firm IHS.
"Think of how many companies are saying the future of their
oil growth is those kind of plays," the executive said on a
webcast. "On a national basis, they are insignificant. It's a
lot of PR, is what it is."
Oil production from the promising Utica shale in Ohio will
be negligible over the long-term, he said.
EOG is a large operator in both the Eagle Ford and the
Bakken. In the third quarter, it said it expects its crude oil
production to rise 40 percent this year.
The International Energy Agency (IEA) said earlier this
month that U.S. oil output could top that of Saudi Arabia and
Russia by 2017, raising the prospect of energy self-sufficiency
for the biggest oil consumer on the planet.
The IEA said it saw U.S. oil production rising to 10 million
barrels per day (bpd) by 2015 and 11.1 million bpd in 2020
before slipping to 9.2 million bpd by 2035.