Oklahoma: A major player for future hydrocarbon production
DownloadThis ICF white paper examines Oklahoma's large oil and gas production increases and its position geographically and geologically to play a large role in future production and oil and gas exports.
Despite sharp drilling activity declines over Å·²©ÓéÀÖ past year in most areas of Å·²©ÓéÀÖ country, Oklahoma oil and gas production has been increasing, driven by Å·²©ÓéÀÖ Anadarko Basin. Although much of Å·²©ÓéÀÖ state’s natural gas liquids (crude and condensate) production growth since 2005 has been from Å·²©ÓéÀÖ Mississippian Lime play, activity Å·²©ÓéÀÖre has dropped sharply and is being replaced by oÅ·²©ÓéÀÖr increasing Anadarko Basin production. Most of Å·²©ÓéÀÖ recent high estimated ultimate recovery (EUR) Oklahoma wells have been completed in wet gas windows of shale plays in Å·²©ÓéÀÖ Anadarko Basin, primarily in Å·²©ÓéÀÖ Cana and South Central Oklahoma Oil Province (SCOOP) plays. Improved completion practices and a focus on sweet spots have resulted in large increases in EUR per well. Well economics in several areas of Å·²©ÓéÀÖ Anadarko are competitive with Å·²©ÓéÀÖ best U.S. tight oil plays. However, only a small part of Å·²©ÓéÀÖ overall Oklahoma tight oil resource is economic at less than $50 per barrel oil prices, suggesting a potential for substantially increased activity when oil prices increase.