This week the Eagle Ford Shale rig count is down four rigs to 223 active drilling rigs. The number of natural gas rigs working increased by two making a total of 108, while the oil rig count declined six rigs to 115. Zero disposal wells or injection wells are being drilled at this time. Horizontal rigs account for 204 of the 223 rigs drilling in the South Texas region. The biggest loses occurred in Gonzales and Dimmit counties, which lost eight rigs combined. DeWitt, Karnes, and Webb counties all experienced an increase in drilling in what might be an early indication of where rigs will move if oil prices trend lower.
Often times, you’ll see operators move rigs to the most prospective areas where commodity prices fall. If the commodity markets stay down, expect the rig count to lag by at least a few weeks and up to three months, but the rig count will be supported by the need for producers to hold lease.
Over the last week, Texon Petroleum reported a mid-year increase of 50% in its Eagle Ford Shale reserves bookings, we continued to hear good news from San Antonio’s commercial real estate market, and Eagle Ford Shale jobs are in great supply.
Drilling Rig Count by County
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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.