Today’s Wealth Daily is written with awe, remorse, and reflection.
We learned over the weekend that “the father of fracking,” George Mitchell, passed away at the age of 94 at his home in Texas.
I’ll tell you more about George Mitchell in a minute.
First, let’s talk about his legacy…
Not a month goes by that I don’t remind you about Mitchell’s herculean accomplishment — an accomplishment that took him decades to achieve.
Mitchell’s accomplishment is the monthly increases in oil production in North Dakota and Texas.
Last week, Texas’ Eagle Ford Shale field announced another record for oil production.
This past May in our sister publication, Energy and Capital, I explained how oil production in the Eagle Ford grew a staggering 2,983% since 2010. I also shared with you this chart:
And now, based on the most current numbers, the growth is even more impressive…
In May, the Eagle Ford reported production of 581,923 barrels per day.
Go back to 2008, the year the Bakken was taking off: Oil production in the Eagle Ford has grown a mind-blowing 165,219% since.
According to Bloomberg:
Oil production in Texas’s Eagle Ford shale formation rose 58% in May from the prior year.
The nine fields that make up the majority of Eagle Ford yielded 581,923 barrels of crude a day, according to preliminary data released by the Texas Railroad Commission, which oversees oil and gas drilling in the state. The fields produced 368,770 barrels daily in May 2012.
February output was revised to 574,032 barrels a day from the preliminary report of 530,689, the commission said. Production totals typically increase in subsequent months as the state receives revised, corrected or late reports.
Growing production out of Eagle Ford is helping fuel a renaissance in Texas crude. The state produced a total of 2.45 million barrels a day in April, the highest monthly level since April 1985, according to the Energy Information Administration, the statistical arm of the Energy Department. The EIA hasn’t released May production data for the state.
Here’s the kicker: Based on this rate of growth, the Eagle Ford is on pace to overtake the Bakken sometime next year.
Imagine having two Bakkens — maybe three, or even four.
But news gets even better. Because drillers are going back to legendary oil fields like the Permian — once left for dead — and using Mitchell’s hydraulic fracturing technology to extract the oil that’s been left behind.
Some speculate that Texas could once again regain its dominance on the global oil market. It’s already the 11th largest producer of oil worldwide.
And if there’s a eulogy for George Mitchell, it’s just that: His story is the American dream come true.
Mitchell was the son of a poor Greek immigrant. But that didn’t stop him from rising fast…
He graduated at the top of his class at Texas A&M with degrees in petroleum engineering and geology.
During his career, he was involved in drilling more than 8,000 wells.
But it was Mitchell’s development in the technology of hydraulic fracturing and horizontal drilling that made him a legend…
He proved his concept by making the Barnett Shale of North Texas a prolific producer of natural gas.
The process launched a revolution in U.S. energy — and prompted international environmental debate.
Mitchell Energy & Development, the company he built and later sold for $3.1 billion, was responsible for more than 200 oil and 350 natural gas discoveries.
George Mitchell, rest in peace.
Forever wealth,
Brian Hicks for Wealth Daily
