Eagle Ford Shale Rig Count – August 26, 2011

Rig PhotoThis 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.

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 31 33 MAVERICK 1 3
WEBB 28 30 BRAZOS 2 2
DEWITT 22 25 MILAM 2 2
LA SALLE 24 23 ZAVALA 3 2
DIMMIT 25 22 COLORADO 1 1
MCMULLEN 18 18 GOLIAD 2 1
GONZALES 18 13 LAVACA 1 1
LIVE OAK 13 13 WILSON 1 1
LEON 7 6 AUSTIN 0 0
ATASCOSA 6 6 Bastrop 0 0
FRIO 6 6 BEE 0 0
MADISON 6 6 BURLESON 0 0
FAYETTE 4 3 DUVAL 0 0
ROBERTSON 4 3 GRIMES 0 0
LEE 2 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.

The following two tabs change content below.
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. R.T. Dukes rtdukes says:

    Hi Jane,

    Often, when commodity prices drop like they have over the past couple of weeks, you’ll see operators move rigs to areas where the economics are better. There are always plocations within a play that make more money than others.

    Many of these companies have huge acreage positions to drill, which would be lost if they didn’t. There’s a term (time limit) on your lease and everyone else’s. The companies have so long to drill to hold those leases and if they don’t they lose their investment. That essentially means they can’t stop drilling, but they’ll move rigs to the best areas in hopes that commodity prices will get better next week or next year when they will be pushing the limits and have to drill the lesser areas. With that, you’ll always have some land left behind that they just let expire.

    You can judge where the core is based on where the greatest number of rigs are working. Have a great weekend,

  2. Looks like the rig count is moving toward the core of the play to me…

    • This is all so new to me. I am leasing my mineral rights to my property near Panna Maria/Pawelekville to EOG, without active drilling to date involving my property. What does it mean when you say ‘the count is moving toward the core of the play’?

Add a Comment

MENU