Eagle Ford Shale Regional Rig Count at 264 – August 24, 2012

The Eagle Ford Shale drilling rig count settled at 264 for the week ending August 24th. In the biggest news of the week, Flint Hills Resources announced a $250 million upgrade of its 230,000 b/d West Refinery in Corpus Christi. The refinery currently handles a little more than 100,000 b/d of Eagle Ford crude and the addition of processing facilities will allow the company to accept even more South Texas oil. As many as 1,000 jobs will be required during peak construction. Flint Hills has spent more than $1 billion in the past decade expanding and upgrading the plant and this is the second $200 million dollar expansion in the past five years. Watch a video covering the story in our article Flint Hill Resources Plans $250 Million Refinery Expansion.

Eagle Ford Oil & Gas Rigs

The number of natural gas rigs running fell back to 60, after jumping to 65 last week. McMullen County (9) fell to single digits, while Karnes (12) and Webb (12) held as the only counties with more than 10 gas rigs running. There are 201 oil rigs working, which is up one week over week. One injection well is being drilled in Karnes County and two disposal wells are being drilled. One in Karnes County and one in Leon County.

Henry Hub futures were trading at ~$2.70 on Friday afternoon. That’s just a few cents off last week’s price.  Spot prices held roughly flat as well at $2.79/mmbtu.

WTI was trading at ~$96/bbl Friday afternoon and LLS crude prices stretched above $114/bbl. Oil traded above $98/bbl this week, but gave up gains in the past two days.

There are 245 horizontal rigs running in the region. The three counties leading development are Karnes with 41 rigs, La Salle with 31 and McMullen with 31. Dimmit (29), DeWitt (22), Webb (21), Gonzales (16), Frio (11), Live Oak (10), and Atascosa (8) round out the top Eagle Ford counties.

News items this week included:

Be sure to visit our South Texas Oilfield Job Listings to search openings and 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 28 28
Petrohawk (BHP) 27 27
EOG Resources 21 21
Marathon Oil (Hilcorp) 21 21
ConocoPhillips 13 13
Pioneer Natural 12 12
Anadarko 9 10
Murphy Oil 11 10
Plains Exploration 9 9
Talisman Energy (Statoil) 9 9
Lewis Petroleum 8 8
SM Energy 7 7
Rosetta Energy 6 6
Shell 6 6
Hunt Oil 5 5
El Paso Energy 4 4
Swift Energy 4 4
Cabot Oil & Gas 3 3
Carrizo Oil & Gas 3 3
Alamo Operating 2 2
Blackbrush O&G 2 2
All Others 58 54
Total 268 264

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 38 41 BRAZOS 2 3
LA SALLE 32 31 FAYETTE 4 3
MCMULLEN 30 31 ZAVALA 3 3
DIMMIT 27 29 BEE 2 2
DEWITT 22 22 BURLESON 2 2
WEBB 21 21 ROBERTSON 2 2
GONZALES 17 16 Washington 2 2
FRIO 12 11 AUSTIN 1 1
LIVE OAK 10 10 DUVAL 2 1
ATASCOSA 11 8 BASTROP 0 0
WILSON 7 7 COLORADO 0 0
MADISON 7 6 GOLIAD 0 0
GRIMES 4 4 LEE 1 0
LAVACA 5 4 MAVERICK 1 0
LEON 3 4 MILAM 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

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