November 28, 2012 / 5:41 PM / in 5 years

U.S. shale oil won't flood global market-EOG CEO

Nov 28 (Reuters) - 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.

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