Nordheim Waits For Word On Fracking Fate
Sometime in November the one billionth barrel of oil was pumped out of the Eagle Ford Shale play – that’s according to the research firm Wood Mackenzie.
More than 70 percent of that production has occurred in the last two years.
The milestone comes at a time when oil prices are going through a steep drop. Right now a barrel of U.S. crude is going for under 70 dollars a barrel. And many in the industry have discussed plans to pull back on U.S. shale production.
But for the Eagle Ford, many speculate that break-even price for production to remain profitable is around $50 in much of the play.
The Karnes Trough, one of the best areas of 30 county area of the Eagle Ford, analysts predict it would be profitable, even if the price of oil fell into the $40s range.
The region has had more than 10,000 completed wells and now accounts for 16 percent of the total U.S. oil production. In 2013, it generated $87 billion in total economic output for the state of Texas.
The rig count is holding steady. But no one knows what the Eagle Ford will look like in the coming year – but for the tiny town of Nordheim – they’re wondering if they are fated to become the dump site for the Eagle Ford.