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OIL AND GAS
It's not North Dakota, but the Eagle Ford shale in Texas that tops oil production
by Daniel J. Graeber
Washington (UPI) May 13, 2013


Schematic E-W section showing the Eagle Ford Shale among the geological strata beneath the DFW Metroplex.

Pipeline division of Chevron settles with EPA over two Utah oil spills
Washington (UPI) May 13, 2013 - Chevron Pipeline Line Co. agreed to pay close to $1 million to resolve issues stemming from two Utah oil spills, the Environmental Protection Agency said.

Nearly 800 barrels of oil spilled in 2010 into the Red Butte Creek in Salt Lake City, Utah, closing the city's Liberty Lake for nearly a year.

In March 2013, roughly 500 barrels of diesel fuel spilled into a wetland associated with the Great Salt Lake.

The EPA announced Chevron Pipeline Co., which no longer owns the latter pipeline, agreed to pay a civil penalty of $875,000 to resolve violations of the Clean Water Act. The penalty will be deposited into a trust fund used by federal agencies to respond to oil spills.

Chevron in December reached a similar settlement with the state of Utah to restore areas soiled by the 2013 spill.

Cynthia Peterson, a community involvement coordinator for the EPA, says the settlement was fair.

"Every case is different, but this penalty is significant, and it reflects the seriousness of the violations," she said Monday.

There was no statement from Chevron Pipeline Co. on the settlement with the EPA.

Oil production from the Eagle Ford shale play in Texas is expected to increase by 27,000 barrels per day next month, a U.S. government report said.

The Energy Information Administration published its drilling productivity report Monday showing anticipated production levels across the six regions -- Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara and Permian -- that combine to account for 90 percent of domestic oil production growth and nearly all of the gas production growth between 2011 and 2012.

For Eagle Ford, EIA said it expects oil production to increase by 27,000 bpd to reach 1.41 million bpd by June.

Texas is the nation's No. 1 oil producer, with a January output of 89 million barrels, more than twice the level of the No. 2 producer, North Dakota.

For North Dakota's Bakken formation, EIA expects production levels to increase by 22,000 bpd in June to reach 1.07 million bpd.

In a short-term market report published last week, EIA said total U.S. crude oil production averaged 8.3 million bpd in April, the highest monthly average since March 1988. By 2015, the average should reach 9.2 million bpd, the highest level in more than 40 years.

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