And, Bakken to contribute significantly to 2012 US production growth.
The dramatic rise in Bakken shale production had a notable impact on the market in 2011 and will continue to comprise a significant portion of domestic energy production growth in 2012, according to Ernst & Young's (E&Y) quarterly oil and gas update.I remember the naysayers back in 2007 and 2008 saying the Bakken was over-hyped, and one of the reasons I started this blog: to post an alternate reading of events.
E&Y anticipates further growth and transaction activity in the Bakken shale oil shale in North Dakota in 2012 as more undeveloped property comes online and begins to produce.
"Long thought of as an oil producing region in terminal decline, the combination of strong prices and improving technology has turned the U.S. into a growth area," E&Y said in a statement. "The application of shale gas technology to shale oil resources is largely to thank for a turnaround in U.S. production."
Other key events and trends in 2011 will continue to shape the oil and gas industry in 2012. The U.S. shale gas boom has elevated U.S. gas production to its highest level in nearly 40 years, despite supply and demand imbalance and continued uncertainty around shale production's impact on air, water and geologic formations.