Eagle Ford Shale Rig Count – August 12, 2011

Drilling RigThis week the Eagle Ford Shale rig count is up four rigs to 233 active drilling rigs. The number of natural gas rigs working increased by two to 106 working, while the oil rig count jumped from 124 active rigs to 126. One rig is drilling a storage well in Milam County, TX. Horizontal rigs account for 205 of the 233 rigs drilling in the South Texas region.

Even with the stock market fluctuating, activity has held strong. If the commodity markets stay down, expect the rig count to lag by at least a few weeks and up to three months. Often drilling contracts are in place for multiple wells and operators don’t have the ability to slam on the brakes at a moments notice.

In another week of earnings releases, we had several companies detail well performance in targets that are secondary to the Eagle Ford. Gastar’s EagleBine wells disappointed, but there were positive results in Goodrich Petroleum’s Buda Lime well tests and Swift Energy’s Olmos success has added a prolific secondary drilling target. Rosetta Resources announced it will test 50-acre spacing in an early attempt to establish full downspacing potential in the Eagle Ford. The Eagle Ford Job Market is hot, but it risks being cooled off by a lack of water. Concerns are being raised as South Texas experiences the second worst drought on record.

Stay tuned each week for an update on the South Texas rig count. Better yet, Subscribe by RSS or Subscribe by Email.

Drilling Rig Count by County

Texas County Prior Week Current Week Texas County Prior Week Current Week
KARNES 33 29 WILSON 3 3
WEBB 25 28 ZAVALA 3 3
DIMMIT 29 25 BRAZOS 1 2
DEWITT 19 24 COLORADO 2 2
LA SALLE 21 21 GOLIAD 1 2
GONZALES 20 19 LEE 2 2
MCMULLEN 16 16 LAVACA 1 1
LIVE OAK 11 13 MAVERICK 1 1
ATASCOSA 11 10 AUSTIN 0 0
LEON 9 8 Bastrop 0 0
MADISON 5 7 BEE 0 0
FRIO 6 6 BURLESON 0 0
FAYETTE 2 4 DUVAL 0 0
ROBERTSON 4 4 GRIMES 1 0
MILAM 3 3 WASHINGTON 0 0

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 Shale.

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.

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Kenneth E. DuBose

Kenneth E. DuBose

Kenneth DuBose is the past President of Cheyenne Minerals Inc., an independent oil and gas operator. He began his energy industry career with ARCO Oil & Gas. Mr. DuBose then directed development of natural gas storage projects with Tejas Power Corp. He was a founding member of U.S. Minerals, (acquired by Torch Energy in 1999) a provider of internet based education for America’s mineral owners. Mr. DuBose holds a BS in Petroleum Engineering from Mississippi State University. He has served on various industry steering committees, non-profit boards, and is an active member of the Society of Petroleum Engineers, the National Association of Royalty Owners, the American Association of Professional Landmen, as well as being a Registered Investment Advisor. He writes on topics of oil and gas investing, wealth management and personal finance, having appeared in the Wall Street Journal, Kiplinger’s, Kiplinger’s Personal Finance, Houston Business Journal, Financial Advisor and various radio and TV outlets.
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