Roaring Shale oil investments across the United States

The United States gas and oil market is expanding at a rapid rate.  Fast growing technologies like hydraulic fracturing and horizontal drilling have increased the rate of natural gas production more than threefold. Technologies like these are extensively used for questing and drilling oil wells.  In this process, wells are drilled below 10,000 feet and water is pumped-in several times at tremendous pressure. This repeated process creates a crack in the rock and ejects the oil from the rocks. This exciting new extraction process has attracted many investors to oil investments as onshore production of oil has increased magnificently.

This method could furnish up to one million barrels of oil per day to the United States over the succeeding six to eight years. The oil extracted from these wells is equivalent to 10 percent of the oil that is imported daily to the United States.  The United States Geological Survey reported in 2005, for example, that an area predicted to yield around 151 million barrels of oil surpassed the figures and reached 4 billion in 2008, far exceeding the expectations for this example site.

Bakken Shale, the largest gas and oil field in the United States situated outside Alaska, contributed more than 2 billion barrels of oil according to the North Dakota Geological Survey.  This increases the overall oil potential of around 6 billion and with the continuous development of technology would raise the estimate even higher. The chief operating officer of Continental Resources, Harold Hamm, mentioned that due to technology limitations only one-third of the onshore oil is redeemable and it provides for plenty of oil investment opportunities.

The plunging natural gas prices across the United States have emerged thanks to the blooming of shale oil. Shale gas has decreased the price of the natural gas below 4 USD per million British thermal unit. This made the oil investment companies and natural gas companies focus towards shale oil.

Shale oil investments are flourishing across the United States with the tremendous support rendered by the independent oil companies. Investors are ready to provide for a great deal of shale oil investments, even selling their traditional natural gas stocks to come up with the capital.  Energy giants like Petrohawk Energy, Range Resources and EOG Resources consider shale oil investments as a worthy and lucrative business.

The potential of shale oil was primarily explored by EOG Resources.  During 2008, EOG Resources acquired the liquid rich areas of Bakken and Eagle Ford Shale in Texas, competing with hordes of other companies. EOG Resources plans to sell the dry gas assets worth around $1 billion USD to focus on the new venture.