Tidal Petroleum On The Increase In U.S. Oil Production
Tidal Petroleum is a company involved in petroleum drilling and production in South Texas. Companies located in the U.S. like Tidal Petroleum have significantly reduced our need to rely on foreign imports. Despite such a spike in U.S. oil production over the past few years, prices have seemed to remain the same. This has left many Americans wondering why there hasn’t been a price change – and if one is coming anytime soon.
Tidal Petroleum Discusses the Shale Revolution
Shale production has become an important resource in the United States as of late. It is a natural gas and oil that have been found in formations all over the country. Over the past decade, the percentage of the U.S.’s natural gas and oil supply coming from shale have skyrocketed. It is predicted that this trend will only continue in the future.
Rising oil prices brought on this domestic production. Because of the cost, it became more feasible to look into other production methods such as shale. Soon, shale formations became such a huge success that self-sufficiency seemed within reach. In fact, exports of refined oil began increasing. Just this past July, records from the Commerce Department displayed that petroleum exports were at an all-time high. According to TheMotleyFool.com, it is estimated that we will pass the domestic production record created in 1970 by 2015.
Why has all of this progress not been reflected in oil prices? Although we have come a long way in the past few years, we are not yet at the end of the journey to total self-sufficiency. With current tension overseas, such as the unrest in Syria, threatening global imports, prices are bound to be at a standstill. However, if the situation improves, it is estimated that the oil prices could be reduced by about $10 per barrel over the next year.
The Obama Administration has at times even encouraged shale gas because it is believed to emit fewer greenhouse gases than coal. However, scientists on both sides of the issue have repeatedly argued over this claim. Some believe that the fracking technique used to acquire gas underground releases toxins into the atmosphere and drinking water. However, a study released by the Department of Energy argues against this idea. According to Forbes.com, researchers studied wells in Western Pennsylvania for up to a year. During this time, they assigned fracking chemicals with identifiable markers. Although aquifers are typically much closer to the surface, the researchers studied liquid as far into the ground as 5,000 feet. No fracking chemicals were identified in the water supplies, which professionals found both relieving and exciting.
While the media has often contributed negative outcomes to fracking and shale gas extraction, the most recent reports are finding there is not much concrete evidence to support that view. In fact, some of the arguments made in popular documentaries about the subject are now believed to be more likely attributed to natural factors in the region rather than gas and oil extraction. For example, some areas naturally leak methane and have been doing so before fracking ever entered the area. While methane may contaminate water supply in these areas, there is no real evidence that fracking is responsible.
With new research emerging everyday and untapped formation consistently being discovered, the shale revolution could very well be the key to an economic revolution. Not only could oil become less expensive, but thousands of jobs are created with each new shale endeavor.
Oil pricing includes so many different factors that it is often unclear how we come to a final price. As you can tell from the above information, even political issues on the other side of the world can cause the price of oil to soar or drop. People usually find this confusing, but you need to think about oil production as a business that, like any other, needs profit to survive as well as improve.
Given the fact that extracting crude oil is a particularly expensive process, oil companies need to add onto the face value price of each barrel to pay for equipment and labor. After surveying the area, the company will drill several thousand feet into the earth and pump the raw material out of the ground. Next, the crude oil is refined – another costly project. The crude oil is transported from the drilling site to a refinery where it is introduced to various temperatures and pressures to create a usable resource. The refined products such as natural gas or kerosene are then shipped all over the world.
A lot of work goes into each barrel of oil. In addition to the labor, leasing and permits must be acquired before drilling can begin. As a business, companies like Tidal Petroleum must pay their employees, for the leases, the tools and they still need to make a profit. All of these factors affect the oil’s pricing. However, when paying attention to the price per gallon, you will see that most companies only charge a few cents over face value.
For the past 22 years, Tidal Petroleum has produced gas and oil for several counties in South Texas. During this time, they have honed their operation practices to include low overhead and low expenses as well as impeccable management organization. They concentrate on deeper drilling programs to reduce the risk of encountering dry holes. Deeper drilling also allows for a longer production life.
Primarily, drilling has taken place on the Eagle Ford Shale formation, which spans over 15 counties in Texas. Some of the largest oil providers in the world also drill on this formation. This company uses only the latest technology and tools such as 3D seismic surveys and top-of-the-line fracturing technology to accomplish their everyday work. For these reasons, Tidal Petroleum has developed a sensational reputation.
Tidal Petroleum is a team of oil and gas providers centered on the Gulf Coast in South Texas. They work in all stages of production including development, acquisition and exploration.