Eagle Ford Shale Regional Rig Count at 248 – Dec 14, 2012

Eagle Ford Shale From Space - NASA

Eagle Ford Shale From Space – NASA Click to Enlarge

Eagle Ford Shale drilling dropped 18 rigs to 248 running this past week. No single operator accounted for more than two of the rigs that were taken out of action during the week. ConocoPhillips, EOG, and Pioneer led the decline by dropping two rigs each.

Plains All American and Chesapeake dominated headlines. Chesapeake sold over $2 billion in midstream assets in a package that included pipelines and gathering in the Eagle Ford. Plains acquired an Eagle Ford rail facility and oil & condensate pipelines and facilities from Chesapeake.

NASA  gave us a better feel for how big the Eagle Ford really is by sharing new satellite photos that show oil & gas development in South Texas is visible from space. Wow.

Eagle Ford Oil & Gas Rigs

The natural gas rig count fell three rigs to 43 and prices fell further. NYMEX natural gas was trading ~$3.30 on Friday. Nice weather across the country has put a damper on demand and natural gas prices. Prices are down more than 15% since Thanksgiving. Ethane prices are not helping either. Prices for the natural gas component are low enough that gas is beginning to be rejected from plants- meaning natural gas that is usually taken out of the system and processed will remain in pipelines. It’s not huge volumes, but it adds to the surplus.

The oil rig count fell 15 rigs to 200 running in the area. WTI crude futures were down slightly on the week. Oil was trading ~$87 per barrel on Friday. Eagle Ford crude priced at $98.25/bbl on the 14th of December. Eagle Ford light crude and condensate in the area traded at $83.25 and $82.25, respectively.

There are 239 horizontal rigs running in the region and one storage well is being drilled in Zavala County.

La Salle County leads development with 39 rigs running. Karnes with 33 rigs, McMullen (25), Dimmit (22), Webb (21), Gonzales (20), DeWitt (17), Live Oak (11), Lavaca (8), Atascosa (7), Fayette (7), Frio (7), and Madison (7) round out the top counties in the region.


South Texas Oil & Gas News:

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Eagle Ford Rig Count by Operator

Operator Name Prior Week Current Week
BHP (Petrohawk) 29 30
Chesapeake 21 20
EOG Resources 20 18
Marathon Oil (Hilcorp) 18 18
Lewis Petroleum 11 11
Murphy Oil 11 11
Anadarko 9 9
ConocoPhillips 11 9
Pioneer Natural 11 9
Talisman Energy (Statoil) 10 9
Plains Exploration 7 7
Halcon Resources 7 6
Hunt Oil 6 5
Shell 5 5
EP Energy 4 4
Rosetta Resources 5 4
Sanchez Energy 4 4
SM Energy 5 4
Carrizo Oil & Gas 3 3
Penn Virginia 3 3
All Others 66 59
Total 266 248

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.

Eagle Ford Shale Drilling by County

Texas County Prior Week Current Week Texas County Prior Week Current Week
LA SALLE 39 39 ZAVALA 6 5
KARNES 35 33 BRAZOS 6 4
MCMULLEN 28 25 GRIMES 3 2
DIMMIT 22 22 MAVERICK 1 1
WEBB 22 21 MILAM 1 1
GONZALES 22 20 ROBERTSON 1 1
DEWITT 19 17 AUSTIN 0 0
LIVE OAK 13 11 BASTROP 0 0
LAVACA 8 8 BEE 0 0
ATASCOSA 9 7 BURLESON 0 0
FAYETTE 8 7 COLORADO 0 0
FRIO 6 7 DUVAL 0 0
MADISON 7 7 GOLIAD 0 0
LEON 5 5 LEE 1 0
WILSON 4 5 Washington 0 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. charles vandever says:

    thanks for the opportunity to comment or a question i see where Bee County is included on the map
    i have it does show Bee County in a Directly Impacted County what does mean. i have a farm along
    Hy 888 is this apart of could become a part of the Eagle Ford Shale area i also see no wells now are
    being drilled in that area

    • R.T. Dukes RT Dukes says:

      Mr. Vandever,

      The Northern portion of Bee County is the area most affected by the play. As you move South/Southeast, the play produces more natural gas and will not likely be developed until Natural Gas prices improve/increase significantly.

  2. Bill Kornmayer says:

    Love the Rig Count but was wondering if it were possible to do one more breakdown. Is it possible to provide County by Company for at least the largest companies.

    • R.T. Dukes RT Dukes says:

      Mr. Kornmayer,

      I try to publish different breakdowns from time to time. I have plans for an article in the next few weeks. Keep checking back.

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