Rob Wile| Dec. 4, 2012, 8:30 AM Business Insider
We recently told you how people now think America could become the next Saudi Arabia of oil production.
One of big reason is North Dakota’s Bakken formation, which we showed you around earlier this year.
But another huge factor is the Eagle Ford formation in Texas, which many believe has become the most profitable oil play in the world:
In August, research firm IHS said drilling results there appeared “to be superior to those of the Bakken” — 300 to 600 barrels-per-day for a peak month production average, compared with 150 to 300 barrels-per-day in North Dakota.
BHP Billiton CEO Michael Yeager says Eagle Ford wells cost $7 million to $10 million, but pay back within half a year (h/t Michael Giberson). “Fifty percent of every well is oil, and we get $100 a barrel for that oil,” he said.
The Eagle Ford’s proximity to the Gulf also gives it a huge advantage. According to Becca Followill of U.S. Capital Advisors LLC, moving oil by rail from the Bakken field in North Dakota can add $10 to $12 to the production cost per barrel.
We wanted to take a look at what the country’s southwestern oil bonanza looks like