Eagle Ford Rig Count Flat at 267 – April 6, 2012

Happy Easter!

Drilling Rig PhotoThe Eagle Ford Shale drilling rig count held flat at 267 rigs working after dropping below 270 for the first time since early March.  The biggest change was realized in Webb County, where 9 rigs moved out. Webb County hit a peak of 41 rigs running in November of 2011, but the rig count has fallen in step with natural gas prices since. Much of the Eagle Ford formation is liquids rich in the northern part of the county, but almost all other development is natural gas focused.

Lewis Petroleum had the biggest change of any of the major operators. The company dropped 6 rigs from 11 to 5. Watching their operated count over the next few weeks will help us determine if this is just one week blip in the rig count statistics or if the company has slowed down in response to gas prices.

Eagle Ford Oil & Gas Rigs

The natural gas directed rig count fell 8 to 67 running this week. That marks the first time we’ve fallen below 70 gas rigs running in the past year. DeWitt with 19 and Webb with 14 lead the natural gas focused counties. Oil directed activity jumped to 199 rigs and is back near all time highs set in mid-March.

Natural gas prices held almost flat week over week at 10-year lows and are trading at $2.09/mmbtu as of Friday afternoon. That’s after trading below $2 intra-day earlier in the week. Oil prices remained flat at $103 per barrel (WTI). Not bad considering the equity market performance during the week.

250 horizontal rigs are running and we have 1 storage well being drilled in La Salle County. Karnes County leads development with 40 rigs. La Salle (39), DeWitt (28), McMullen (26), Dimmit (23), Webb (23), Gonzales (21),  Atascosa (12), and Live Oak (11) make up the top Eagle Ford counties.

Devorah Fox, from Mike Byrnes & Associates contributed a great article related to Compliance Safety Accountability in the Eagle Ford. Be sure anyone with a CDL reads here tips and notes.

It was a slow week for news in the Eagle Ford. There was a successful Eagle Ford Job Fair earlier in the week and Chevron-Phillips is breaking ground on a world class petro-chemical plant.

Visit our Eagle Ford Hotels page. We’ve negotiated discounted rates with hotels that are welcoming the Oil & Gas Industry.

Come back weekly for updates or sign up for alerts – Email Subscribe Link]

Drilling Rig Count by Operator


Operator Name Prior Week Current Week
Chesapeake 34 35
EOG Resources 29 28
Petrohawk (BHP) 20 19
ConocoPhillips 17 17
Marathon Oil (Hilcorp) 16 17
Pioneer Natural 12 12
Talisman Energy (Statoil) 11 12
Murphy Oil 9 10
Anadarko 9 9
Plains Exploration 9 8
Shell 6 6
SM Energy 6 6
Swift Energy 6 6
Lewis Petroleum 11 5
Rosetta 4 5
Exxon (XTO 4 5
Carrizo Oil & Gas 4 4
Cheyenne Energy 4 4
Hunt Oil 4 4
El Paso 3 3
All Others 57 52
Total 275 267

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 SmithBits 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.

Drilling Rigs by County

Texas County Prior Week Current Week Texas County Prior Week Current Week
KARNES 42 40 ZAVALA 3 3
LA SALLE 41 39 BEE 2 2
DEWITT 28 28 BRAZOS 2 2
MCMULLEN 23 26 FAYETTE 2 2
DIMMIT 19 23 LEE 2 2
WEBB 32 23 MAVERICK 2 2
GONZALES 22 21 GRIMES 1 1
ATASCOSA 10 12 Washington 0 1
LIVE OAK 10 11 AUSTIN 0 0
LAVACA 7 7 BASTROP 0 0
MADISON 7 7 BURLESON 0 0
FRIO 4 5 COLORADO 0 0
LEON 4 4 DUVAL 0 0
ROBERTSON 1 3 GOLIAD 0 0
WILSON 2 3 MILAM 1 0
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R.T. Dukes

R.T. Dukes

Managing Editor at EagleFordShale.com
R.T. is the managing editor of EagleFordShale.com. In prior roles, he advised major oil companies on strategy, the macro business environment, and opportunity screening. 2503 Robinhood, Houston, TX, 77005, U.S.A. | Telephone: 832.429.4790

Comments

  1. Brandon Hoggard says:

    I’m a motorman, working in North Texas right now. I’m looking at moving back to South Texas and get on a rig closer to home. Does anyone know which drilling companies are hiring right now and where their yard is located? thanks!

  2. Ted McVay says:

    Great support, thanks.

    I have mineral rights in Lavaca County. How can I find out the physical location in relation to the active drilling there.

    Thanks again for your help.

    Best regards,

    Ted

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