Breitbart – by Kristin TateOne billion barrels of oil have officially been produced from the Eagle Ford shale formation.
More than 70 percent of the production from the shale has occurred during the last two years alone, according to the Houston Chronicle.
The good news, however, comes as the future of Texas’ gas and oil industry looks somewhat bleak. As Saudi Arabia continues to inundate the U.S. with cheap oil, some Texas producers could be pushed out of the global energy market. The Saudis’ recent efforts have already wiped “hundreds of billions of dollars in equity value from the market capitalization of U.S.-traded securities,” the Dallas Morning News reported.
Texans will likely see an immediate impact from the plummeting prices of crude oil. Major U.S. energy companies — many of which are located in the Lone Star State — are expected to start downsizing. Rating agency Moody’s predicted that exploration and production will cut spending by 20 percent next year.
Such significant downsizing could have a profound impact on Texas’ job market as well as the state economy.
Still, oil producers in the Eagle Ford should be able to turn a profit — for now. A barrel of oil currently costs around $66.81, according to the Chronicle, and the break-even price for Eagle Ford producers is around $50.
Many experts assert that the shale will be the most lucrative U.S.-based drilling area as oil prices continue to fall. Wood Mackenzie Research Analyst Cody Rice told the Chronicle, “If you’re a strong operator, you can expect to realize robust returns [in the Eagle Ford shale] — even in the current price environment.”
Follow Kristin Tate on Twitter @KristinBTate.