Image courtesy of Sten Dueland/Flickr.

Production at the Eagle Ford shale play in Texas hit 1 billion barrels during November, research firm Wood Mackenzie said Thursday.

Over 70 percent of total production has happened within the last two years.

Production numbers include crude oil and condensate output.

The U.S. Geological Survey estimates Eagle Ford holds recoverable reserves of about 7 billion to 10 billion barrels of oil.

The production milestone comes amid concern that U.S. shale producers will have to curb investments and output as oil prices continue to hover around 4-year lows.

Moody’s said last month it expects producers to slash capital expenditure budgets by about 20 percent in 2015.

Eagle Ford is expected to attract the most investment dollars of all U.S. shale formations next year, with producers projected to spend about $30.8 million, UK-based Wood Mackenzie said.

Analysts have pegged the break even price for Eagle Ford producers at about $50 per barrel in most of the play.

The chief economist at the International Energy Agency Faith Birol said Friday that he believes oil prices will rebound back to about $100 per barrel “in the next years to come.”

“We shouldn’t be blinded with what’s happening now. Looking at the geology, looking at the economics of the oil markets, one shouldn’t be surprised if we see in a few years’ time, again, a rebound of prices,” Birol said.

ExxonMobil CEO Rex Tillerson said low prices could “sort out” the market by pushing out smaller unconventional drillers and bringing output in line with demand.


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