Austin Chalk Play an Opportunity for Oil tank trailers

Oakville, Ontario – April 1, 2021, Austin Chalk Emerging Play is an Opportunity for Oil tank trailers and oil haulers.  For years the Austin Chalk located in the Texas Eagle Ford has seen oil production growth stagnating.  Modern high-intensity completions techniques have resulted in a step-change improvement in oil well performance in the Austin Chalk.  The area is now an emerging, high-growth asset with extensive inventory of potential and significant oil wells.   Crude oil production growth creates a great opportunity for tank trailer operators to haul crude oil.

The Austin Chalk has been producing oil and gas in Texas since at least the early 1920’s and has cumulative production of 948 million barrels and 5.6 trillion cubic feet of natural gas through the end of 2016.  The largest Austin Chalk oil field is the Giddings Field, located in parts of 7 counties, with cumulative production of 526 million barrels of oil and 4.7 trillion cubic feet of gas.

The combination of horizontal drilling with the innovation of multi-stage fracture stimulation in horizontal wells created the shale revolution.  This is the single largest innovation in the oil and gas industry in at least the last 50 years.  Austin Chalk is benefiting for horizontal drilling with the innovation of multi-stage fracture stimulation, operators forecast to produce some 263,000 bopd.  Horizontal drilling ahs been a growth engine for tank trailers and crude oil haulers.

Oil tank trailers are used to truck crude oil in the Austin Chalk to existing established pipelines or rail facilities. Due to crude oil production growth new pipelines are required.  Pipeline construction in the Eagle Ford/Austin Chalk can take a long time to construct connections at the gathering pipelines resulting in the need for crude oil hauling by tank trailers.

Key Oil & Gas Producers in the Austin Chalk Include

MAGNOLIA OIL & GAS OPERATING LLC – a publicly traded oil and gas exploration and production company with operations primarily in South Texas in the core of the Eagle Ford Shale and Austin Chalk formations. We create value for our investors by growing our premier asset platform, generating substantial free cash flow, maintaining financial flexibility, and ensuring thoughtful capital allocation. https://www.magnoliaoilgas.com/

Eog Resources, Inc. – The Eagle Ford is a world-class crude oil field which has produced in excess of 3.4 billion barrels of crude oil and condensate. With approximately 516,000 of its 579,000 total net acres in the prolific oil window, EOG continues to be the largest crude oil producer in the Eagle Ford with cumulative gross production in excess of 600 MMBbl of crude oil and condensate. In 2019, EOG completed 321 net Eagle Ford wells and 14 net Austin Chalk wells. http://www.eogresources.com/

BPX – Oil production from the US shale business, known as BPX, has tripled to 127,000 b/d after the purchase of BHP’s assets mostly in the Eagle Ford and Permian shale basins.  The investment rationale for BP’s US shale oil and gas assets “remains strong,” with expected cost savings set to boost earnings from the business, Auchincloss told analysts on a strategy presentation.  www.bp.com