There are six regions in the country that accounted for 95 percent of U.S. oil and natural gas production growth between 2011 and 2013, and all of them are expected to to see additional increases in July and August, according to a report by the Energy Information Administration (EIA).
Those regions are the Bakken, Eagle Ford, Haynesville and Marcellus shale, as well as that Niobrara formation and Permian Basin. The EIA notes that since August 2013, production among new oil and gas wells has continuously increased, and will continue to do so. For example, an article on Natural Gas Intel highlights the EIA's projection that natural gas volumes at the Marcellus Shale will increase by 0.425 billion cubic feet per day in July and August.
Though some may worry that the rush to develop oil and gas resources will result in an economic bubble that will one day crash, new data shows that the industry may be more sustainable than previously believed. In fact, a recent report by investment bank Raymond James noted that increasing production efficiency is making it possible for production companies to worry less about commodity prices.
"With rising US production and falling costs per unit of production, US E&P companies are now poised to actually grow cash flows even in a flat or modestly lower energy price environment," Raymond James oil and gas analyst Marshall Adkins said in a recent statement. "We now think the US oil and gas business can be viewed as more of a sustainable growth industry rather than a pure commodity call."
This is a positive market development that will increase the likely hood of petrochemical companies doubling down on production. However, as the likelihood of environmental liabilities increases, it will be ever more crucial for these companies to work along side environmental consultants on major projects.