C&B Notes

‘Carpe Oleum’ (Seize the Oil)

Horizontal drilling and hydraulic fracturing technologies have unlocked natural gas reserves from Pennsylvania to Texas that promise to change the U.S. energy picture.  These same techniques have promoted oil production in North Dakota, which has quickly become a meaningful international producer (and now is larger than regulation-bound Alaska).

At more than 700,000 barrels per day (bpd), North Dakota is now producing almost as much oil as the countries of Egypt (719,000 bpd) and Argentina (723,000 bpd).  At the current rate of production increases, it’s possible that North Dakota will be producing more than one million bpd of oil by the middle of next year and the state will then surpass oil output in the following countries: Indonesia (923,000 bpd), Oman (927,000 bpd), India (945,000 bpd), Colombia (960,000 bpd), and the U.K. (982,000 bpd).