Eagle Ford Shale Rig Count – September 2, 2011

This week the Eagle Ford Shale rig count is down one rig to 222 active drilling rigs. The number of natural gas rigs working increased by six making a total of 114, while the oil rig count declined seven rigs to 108. Zero disposal wells or injection wells are being drilled at this time. Horizontal rigs account for 200 of the 222 rigs drilling in the South Texas region. The biggest loses occurred in Atascosa and Dimmit counties, which lost eight rigs combined. La Salle, Webb, and Zavala counties all experienced an uptick in drilling activity.

We mentioned this last week, but we think it is worth stating again. You’ll see operators move rigs to the most prospective areas of a play when commodity prices fall. If the commodity markets stay down, the rig count to lags but usually falls correspondingly. At play in the Eagle Ford, is the need to hold leases by drilling and producing hydrocarbons. An operator can hold a 640 acre lease with one gas well and only 160 acres with one oil well. That is likely playing a factor in supporting the gas rig count. More acreage HBP’d sooner.

It was a quiet week in terms of news, but we had a few noteworthy events:

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 33 MAVERICK 3 2
WEBB 30 33 MILAM 2 2
LA SALLE 23 27 ROBERTSON 3 2
DEWITT 25 23 ATASCOSA 6 1
DIMMIT 22 19 BRAZOS 2 1
MCMULLEN 18 18 DUVAL 0 1
GONZALES 13 15 GRIMES 0 1
LIVE OAK 13 12 LAVACA 1 1
LEON 6 7 Washington 0 1
MADISON 6 5 WILSON 1 1
ZAVALA 2 5 AUSTIN 0 0
FRIO 6 4 BASTROP 0 0
COLORADO 1 3 BEE 0 0
FAYETTE 3 3 BURLESON 1 0
LEE 3 2 GOLIAD 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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