Eagle Ford Shale Regional Rig Count at 270 – August 31, 2012

A record 215 rigs are drilling for oil in the region

The Eagle Ford Shale drilling rig count grew to 270 as operators added six rigs during the week. In the biggest shift of the week, the oil rig count grew by 14 to 215 active rigs. That’s more than 300% growth in the oil rig count since the beginning of 2011. Don’t expect that dynamic to change any time soon. Oil prices have come under some pressure, but $96 oil is much more attractive than sub-$3 natural gas.

Eagle Ford Oil & Gas Rigs

Oil Drum ImageThe number of natural gas rigs running fell to 52 this week. That’s a decline of 13 in the past two weeks alone. Webb County fell out of double digits and Karnes County is the now the only county with more than ten natural gas rigs running. Almost the entire shift in Webb County was due to SM Energy’s rigs being reclassified from gas to oil. There are now 215 oil rigs working the region, which surpasses the record of 210 hit twice earlier in the year. One injection well is being drilled in Karnes County. Two disposal wells are being drilled – one in Karnes County and one in Leon County.

Henry Hub futures were trading at ~$2.80 on Friday afternoon. Spot prices and future prices flipped positions from last week as spot prices now trail futures prices at $2.73.

WTI was trading at ~$96/bbl Friday afternoon. We had another week where prices varied quite a bit during the week, but settled flat before the weekend. Eagle Ford crude priced at $102/bbl on August 31st and light crude and condensate traded at $93 and $92, respectively.

There are 252 horizontal rigs running in the region. The three counties leading development are Karnes with 43 rigs, La Salle with 34 and McMullen with 31. Dimmit (30), Webb (23), Gonzales (20), DeWitt (19),  Frio (10), and Live Oak (11) 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 28
EOG Resources 21 21
Marathon Oil (Hilcorp) 21 21
ConocoPhillips 13 14
Pioneer Natural 12 11
Anadarko 10 10
Lewis Petroleum 8 9
Murphy Oil 10 9
Plains Exploration 9 9
Talisman Energy (Statoil) 9 9
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
Forest Oil 2 3
Alamo Operating 2 2
All Others 54 58
Total 264 270

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 41 43 ZAVALA 3 3
LA SALLE 31 34 BEE 2 2
MCMULLEN 31 31 BURLESON 2 2
DIMMIT 29 30 FAYETTE 3 2
WEBB 21 23 GRIMES 4 2
GONZALES 16 20 ROBERTSON 2 2
DEWITT 22 19 Washington 2 2
LIVE OAK 10 11 AUSTIN 1 1
FRIO 11 10 BASTROP 0 0
ATASCOSA 8 7 COLORADO 0 0
MADISON 6 7 DUVAL 1 0
WILSON 7 7 GOLIAD 0 0
BRAZOS 3 4 LEE 0 0
LAVACA 4 4 MAVERICK 0 0
LEON 4 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

Comments

  1. Bob Gavlik says:

    Mr Duke is there anyway you can find out when Chesapeake is going to bring a well we have interest in to production? the well # is ACH33231 Abstract is A299 located on CR469 in LaSalle Co.

  2. Craig Manning says:

    Mr. Dukes, I just today ran across your site and found it very informative. We are in the final stages of opening a service center in the Alice area and find the info helpful. Keep up the good work….Craig Manning

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