H2S Gas Found in Higher Concentrations – McMullen Co. Wells

Deep Faults in Wellbores of Wells Linked to Higher H2S Concentrations

McMullen County, TX includes some of the best development areas for the Eagle Ford Shale, but wells in the county have been found to yield higher concentrations of H2S gas compared to other areas.

According to experts, early Eagle Ford well results indicated the reservoir was a relatively sweet, yielding low concentrations of H2S gas, at less than one percent. Well results from some McMullen County wells, however, have yielded H2S gas concentrations greater than four percent.

In October of 2014, Patricia DuBois, a Staff Geologist at Murphy Exploration & Production Co., and Dr. Huzeifa Ismail, a Consultant at Maxoil Process Solutions, conducted an SPE Study Group to further discuss the reasons why McMullen County wells have higher H2S concentrations. It was found deep faults intersect the wellbores of wells with higher H2S gas concentrations. Mapping of these features ultimately allowed for the prediction of areas with high H2S. An economic model was then developed based on the expected H2S concentration and production forecast to direct long term drilling and completions strategy and selection of H2S treatment options.

For more on SPE Study Groups visit spegcs.org

RRC Adopts New Pipeline Permit Rule

Pipeline Operators Must Verify Common Carrier Status When Applying for T-4 Permit

Texas Railroad Commission (RRC) commissioners have adopted pipeline permit rule amendments designed to clarify how a pipeline operator may be classified by the commission as a common carrier*. Common carrier pipelines in Texas are pipelines which are contracted to carry crude petroleum, gas or carbon dioxide for hire.

The rule amendments require pipeline operators to verify their claim to be a common carrier when applying for a T-4 Permit to operate a pipeline or when renewing, amending or canceling an existing permit.

Commissioner Barry Smitherman said, “The Commission’s T-4 Permit to Operate is a permit to operate a pipeline in Texas. It does not change the rights of a property owner nor does it grant eminent domain powers to a pipeline operator. Our new rules require an attestation from the operator of their knowledge of Texas eminent domain laws and the Texas Landowners’ Bill of Rights.”

The adopted rule amendments take effect on March 1, 2015, and include the following requirements:

  • permit applications must now include additional information including requested classification and purpose of the pipeline or pipeline system as a common carrier, a gas utility or private line operator;
  • permit applications must include a sworn statement from the pipeline applicant providing the operator’s factual basis supporting the classification and purpose being sought for the pipeline;
  • if applicable, the pipeline operator must submit documentation such as a contract or tariff for third-party transportation in the case of a common carrier, along with any other information requested by the Commission;
  • the pipeline T-4 permit, if granted, shall be revocable at any time after a hearing if the Commission finds that the pipeline is not being operated in accordance with state laws and Commission rules and regulations.
  • the applicant must acknowledge the eminent domain provisions in the Texas Landowner’s Bill of Rights.

Common carrier – a common carrier offers its services to the general public under license or authority provided by a regulatory body.

Read more at rrc.state.tx.us

Merry Christmas!

merry christmas

SPE-GCS Shale Study Group to Be Formed in 2015

Group Will Look for Ways to Make Shale More Sustainable

The Society of Professional Engineers’ Gulf Coast Section (SPE-GCS) hopes to form a new group in 2015 to examine shale technologies, and collaborate with industry professionals on ways to make shale more sustainable.

“This group will help disseminate information on new technologies, new services, best practices, benchmarking, lessons learned, safety, regulation, etc., said the group’s organizer, Kim Thames, by email. “The group aims to bring together the best shale expertise and ultimately become SPEI’s leader in shale knowledge.”

It’s yet to be determined how group participants will meet, but Thames notes it will be similar to other SPE Study Groups, with monthly meetings, lunch and learns, networking, sporting events, etc. In-person meetings will be in Houston, TX.

If you are interested in getting involved in this new group as a supporter or in a leadership position, contact Kim at kim.thames@bhpbilliton.com to have her add your name and SPE member number to the petition.

The Studios at Carrizo Springs Provides State of the Art Eagle Ford Accomodations – Press Release

Fully Furnished Apartment Style Living
The Studios at Carrizo Springs

The Studios at Carrizo Springs | Click to Enlarge

Stratton Oilfield Systems has introduced a superior housing concept to the Eagle Ford Shale area.

Located one-half mile off of Hwy. 83 in Carrizo Springs, The Studios can accommodate almost 500 guests.  The fully furnished, apartment-style suites are outfitted with resort quality furnishings and amenities and are situated on a paved, 25-acre site. 

Stratton Oilfield Systems (SOS) has developed a keen understanding of the needs of oil field workers and the results are a resounding success. The Studios at Carrizo Springs is truly your Home Away From Home.

Accommodations for Oil Field Workers

“Stratton Oilfield Systems has developed a keen understanding of the needs of oil field workers and the results are a resounding success.”

A well-rested worker is a safer worker in the field, thus The Studios offer only full or king-sized beds in a quiet, secure environment.  Amenities include:  daily housekeeping, weekly linen service, on-site laundry facilities, keyless building and room entry, DirecTV, Wi-Fi, a fully equipped exercise facility, and private training/conference rooms. The gated grounds are protected by 24-hour security with management and maintenance staff on the premises at all times.

The Two Bedroom Suites are 770 sq. ft., with 2 full size beds in each bedroom, a kitchenette, full-size refrigerator, microwave, coffee maker, dining area, and a large comfortable living room.  The One Bedroom Suites are 322 sq. ft., with a kitchenette and a spacious, private bedroom featuring a king size bed and a desk.  All the Suites are equipped with flat screen TVs in the living areas and bedrooms.

Recognizing the need for community space, SOS created a large recreation facility on the premises, aka “The Man Cave”.  Residents can enjoy gathering around the 82” HDTV or the pool / domino / gaming /ping pong tables.  Out of doors, guests can enjoy the NBA quality basketball goal, huge gazebos & professional horseshoe pits, all set in a grassed, four acre area.

Convenient Dining for Eagle Ford Workers

There is also a state-of-the-art Dining Facility operated by Taylors International.  This is a full service, commercial kitchen, capable of serving three meals each day to 1,000 guests, in four separate dining rooms, if needed.  There are three hot entrées offered at every meal service, always a salad bar and boxed lunches available to go.  Guests have access to a fully stocked snack & drink area 24 hours a day.

Reasonable Daily Rates

With daily rates starting at $49.95, SOS has catapulted The Studios at Carrizo Springs to the top of the list for employee housing in the area.  It is a safe, clean, comfortable, full-service location that sets a new standard for remote accommodations.  Creating this type of model is not easy, but SOS clearly has it mastered.  Of particular benefit to smaller companies is the fact that long-term contracts are not required.  Stay a night, a week or a month.

More About Stratton Oilfield Systems

SOS’s parent company, Stratton Securities, Inc. was established in 1987 and has an impeccable record of success working with the United States Military in providing housing to our servicemen and women.  Stratton Oilfield Systems brings that same work ethic, experience, integrity, and attention to detail to the oil field industry to provide remote housing for your business’s most important asset – your employees.

For Reservations Contact: 
Tom Caufmann, Director of Operations
909 Munson Road, Carrizo Springs, Texas
Email: thomas@strattonoilfieldsystems.com
Website: www.studiosatcarrizosprings.com

The article above was published through EagleFordShale.com’s press release distribution service. Learn more about Eagle Ford Advertising Here.

Eagle Ford Regional Rig Count 266 – Eagle Ford Spending Could Reach $30 Billion in 2014 – Jan 13, 2014

Eagle Ford Oil Production

Eagle Ford Oil Production | Click to Enlarge

The Eagle Ford Shale rig count dropped by two rigs to 266 running over the past week.

In recent Eagle Ford news, development spending is anticipated to hit $20 billion dollars, with some estimates pushing that figure up to $30 billion.

Read the full article: Eagle Ford Spending Could Reach $30 Billion in 2014

The U.S. rig count increased by three rigs from 1,751 to 1,754 running over the past week. A total of 357 rigs are targeting natural gas (15 less than last week) and 1,393 (15 more than last week) are targeting oil in the U.S. The remainder are drilling service wells (e.g. disposal wells, injection wells, etc.). 825 or 47% of rigs active in the U.S. are running in Texas.

Baker Hughes rig count is quoted here. Baker Hughes also releases its own Eagle Ford Rig Count that covers the 14 core counties (229 rigs). The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table near the bottom of this article.

Eagle Ford Oil & Gas Rigs

The natural gas rig count increased by two rigs to 30 running this past week. Average rig counts for natural gas production in 2012 were around 82 and then dropped to around 41 in 2013. Don’t be surprised if this is the bottom and we see more natural gas rigs this year. Natural gas essentially stayed level around ~$4/mmbtu on Friday afternoon.

The oil rig count decreased by 4 to 236 rigs running. WTI oil prices took a slight hit as trading resumed for the new year, dropping to just under $92/bbl by the end of the week. Eagle Ford light crude traded at $88/bbl on January 13th.

A total of 227 rigs are drilling horizontal wells, 23 rigs are drilling directional wells, and 16 rigs are drilling true vertical wells. Karnes, DeWitt, La Salle, and McMullen counties all have between 29 and 31 rigs running. See the full list of drilling by county below.

South Texas Oil & Gas News:

Be sure to visit our South Texas Oilfield Job Listings to search openings and come back weekly for updates or sign up for alerts – Daily or Weekly Email Alerts

Eagle Ford Shale Drilling by County

County Previous Week Current Week County Previous Week Current Week
MCMULLEN 30 29 BEE 1 2
ATASCOSA 18 15 LEE 1 1

Eagle Ford Operated Rig Count By Company

SmithBits no longer reports its operated rig count, but we’ll have updated number for you from a new source soon. Until then, you can reference our numbers from mid-April. There has not been a significant change in the overall rig count since this date:

Operator Name Apr-13
BHP (Petrohawk) 28
EOG Resources 25
Marathon Oil 18
Chesapeake 16
ConocoPhillips 10
Pioneer Natural 10
Anadarko 9
Lewis Petroleum 8
Murphy Oil 7
Plains Exploration 7
Talisman Energy (Statoil) 7
EP Energy 6
Halcon Resources 6
Hunt Oil 6
Swift Energy 6
Rosetta Resources 6
Cabot Oil & Gas 5
SM Energy 5
Shell 4
Carrizo Oil & Gas 3
All Others 50+

What is the Rig Count?

The Eagle Ford Shale Rig Count is an index of the total number of oil & gas drilling rigs running across a 30 county area in South Texas. The South Texas rigs referred to in this article are for ALL drilling reported by Baker Hughes and not solely wells targeting the Eagle Ford formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count and/or Smith Service Co’s (Schlumberger) Smith Rig Count.