Bakken Shows Huge Potential as Premier U.S. Oil Hub
The recent oil production boom in North Dakota and Montana’s Bakken formation helped it emerge from being a little-known region to an eminent oil hub. Many foresee that this region will compete with the Gulf Coast in terms of oil production, especially if oil investments for infrastructure keep pouring in.
According to experts, Bakken is going to be the U.S.’ premier oil exploration and production site in which more infrastructure, including pipeline systems, will be put up to maximize oil output.
Statistics from the EIA reveal that oil production in the region has increased by more than two-fold, from 274,000 bpd to more than 670,000 bpd over the past two years.
But those from the private sector disclosed that the stats presented are quite low, citing that oil output is actually higher, at around 800,000 bpd. This could even move up to a million bpd in the coming years. In the long-term, experts estimate that drilling will be conducted on more than 30,000 oil wells in the area.
The U.S. also gets a big chunk of its crude oil requirements from this region. Although its current infrastructure is no match to what is in Texas, many believe that, in time, it might even seize Texas’ title as the U.S.’ leading oil exploration and production center.
However, while North Dakota can boast of its Bakken region, Texas too has an ace in Eagle Ford. This oil hub can turn out around 750,000 bpd. Also, a U.S. appraisal of the region reveals that Eagle Ford holds more than 850 million barrels of untapped oil deposits.
Meanwhile, an oil and gas specialist disclosed that oil investment opportunities in the Bakken have drawn a lot of capitalists from the Asian and European regions. As U.S. current crude oil prices continue to trend at beyond $90, oil drillers in the area will continue to make sizeable profits.
Crude experts say that Bakken crude is about 90 percent oil, so it is by far one of the cleanest. Still, the same group warns that, despite the high quality of crude, the lack of pipelines and infrastructure in the region might slow down expansion if it doesn’t start building now.