Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Tue, 27 Jan 2015 13:44:01 +0000 en-US hourly 1 http://wordpress.org/?v=4.1 Eagle Ford Rig Count Decreases by Three to 232 http://eaglefordshale.com/news/eagle-ford-rig-count-decreases-to-232/ http://eaglefordshale.com/news/eagle-ford-rig-count-decreases-to-232/#respond Tue, 27 Jan 2015 02:49:59 +0000 http://eaglefordshale.com/?p=7256 Eagle Ford Rig Map August 2012

Eagle Ford Rig Map 2012 | Courtesy Baker Hughes

The Eagle Ford Shale rig count decreased by three to 232 rigs running across our coverage area by the end of last week.

In recent Eagle Ford news, the U.S Geological Society registered close to a dozen quakes in the region ranging in intensity from a 2.6-3.7 on the richter scale within a 36 hour period. Earthquakes in Texas have been on the rise in recent years, causing many to make a connection between increased seismic activity and the fracking throughout the state.

Read more: Texas Quakes Alarm Residents

The U.S. rig count decreased by 43 to 1,633 rigs running by the end of last week. A total of 316 rigs were targeting natural gas (six more than the previous week) and 1,317 were targeting oil in the U.S. (10 more than the previous week).  753 of rigs active in the U.S. were running in Texas.

South Texas Oil & Gas News:

Be sure to visit our South Texas Oilfield Job Listings to search openings and come back weekly for updates or sign up for alerts – Every other Weekday or Weekly Email Alerts

 

Eagle Ford Shale Drilling by Count

County Previous Week Current Week County Previous Week Current Week
KARNES 38 37 GOLIAD 6 6
LA SALLE 28 28 LEON 3 4
DIMMIT 25 25 FRIO 3 3
LA SALLE 34 33 BASTROP 4 3
DUVAL 28 28 LIVE OAK 2 2
DIMMIT 25 25 ATASCOSA 0 0
LAVACA 23 21 BEE 0 0
MILAM 19 19 BRAZOS 0 0
WILSON 14 15 DE WITT 0 0
AUSTIN 14 14 FAYETTE 0 0
COLORADO 12 13 GONZALES 0 0
BURLESON 10 10 KARNES 1 0
GRIMES 11 10 MCMULLEN 0 0
LEE 10 10 ROBERTSON 0 0
MAVERICK 9 9 WASHINGTON 0 0
MADISON 7 7 WEBB 0 0
ZAVALA 0 0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Read more from bakerhughes.com

 

 

 

]]>
http://eaglefordshale.com/news/eagle-ford-rig-count-decreases-to-232/feed/ 0
Eagle Ford Rig Count Decreases to 235 http://eaglefordshale.com/news/eagle-ford-rig-count-decreases-235/ http://eaglefordshale.com/news/eagle-ford-rig-count-decreases-235/#respond Thu, 22 Jan 2015 14:49:23 +0000 http://eaglefordshale.com/?p=7242 Eagle ford rig counts

Eagle Ford Rig Counts Down

The Eagle Ford rig count decreased by 13 this week ending at 235, adding to the sharp decline seen in the region as we lost 26 active rigs in the last four weeks.

WTI crude prices have decreased by ~$9.59 since December 19th, trading at $55.99/bbl on Monday morning. As oil prices continue to drop, reports of deeper budget cuts and layoffs are now daily news.

Related: Energy Giants Announce Layoffs

Related: Halcón Plans to Reduce Rigs for 2015

Eagle Ford and Bakken are both experiencing a decrease in rig count, but other regions are also seeing a decline.  The U.S. rig count decreased to 1,676 rigs running by the end of last week with a total of 310 rigs targeting natural gas (down 28 from December) and 1,366 targeting oil in the U.S. (down 170 since December).

Previous Wk Current Wk
KARNES 36 34
DIMMIT 30 28
DE WITT 27 25
LA SALLE 23 23
MCMULLEN 20 19
ATASCOSA 16 14
WEBB 15 14
BURLESON 13 12
GONZALES 11 11
BRAZOS 10 10
LAVACA 9 10
MADISON 9 9
LIVE OAK 6 7
FRIO 7 6
ZAVALA 5 4
FAYETTE 3 3
LEE 3 3
LEON 2 2
GRIMES 1 1

 

What is the Rig Count?

The Bakken Shale Rig Count is an index of the total number of oil & gas drilling rigs running across Montana and North Dakota. The rigs referred to in this article are for ALL drilling reported by Baker Hughes and not solely wells targeting the Bakken formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count.

Read more at BakerHughes.com

]]>
http://eaglefordshale.com/news/eagle-ford-rig-count-decreases-235/feed/ 0
Urban Drilling Ordinance Hearing http://eaglefordshale.com/news/urban-drilling-ordinance-hearing/ http://eaglefordshale.com/news/urban-drilling-ordinance-hearing/#respond Wed, 21 Jan 2015 14:17:55 +0000 http://eaglefordshale.com/?p=7237 college station ordinance

College Station Proposes New Ordinance

Are you a mineral or royalty owner in the College Station area? If so, you’ll want to mark your calendar for an important city council meeting tomorrow and consider signing up to voice your opinions.

The College Station City Council will be considering an Urban Drilling Ordinance on January 22nd and the public is invited to attend and give comments. Speakers may present a 3 minute presentation.

For many royalty owners, restrictive ordinances such as this one prevent responsible oil and gas development and infringe on private property rights. Most concerning is the 1,500-foot setback requirement contained in the ordinance. Concerned owners assert that this requirement is unnecessary intervention because research confirms that 600-foot setbacks are enough to protect public health. If this is true, then this ordinance would amount to a de facto ban, if passed. These owners are calling for the community to base decisions about oil and natural gas activity on sound science.

College Station City Council Meeting

City Hall – Council Chambers 1101 Texas Avenue S., College Station, Texas

Thursday, January 22, 2015, 5:30 – 7 p.m.

Sign up to speak here

agenda item #14-897

 

More on Eagle Ford restrictions: Fracking Bans in Texas 

Read more about mineral owner rights here

 

 

 

 

]]>
http://eaglefordshale.com/news/urban-drilling-ordinance-hearing/feed/ 0
Wastewater Disposal to Continue in Texas http://eaglefordshale.com/news/wastewater-disposal-continue-texas/ http://eaglefordshale.com/news/wastewater-disposal-continue-texas/#respond Tue, 20 Jan 2015 02:13:59 +0000 http://eaglefordshale.com/?p=7229 Eagle Ford Injection Wells

Eagle Ford Disposal Well Map | Click to Enlarge

Landowner rights in Eagle Ford took another hit last week when Judge Russell Wilson denied a request to stop the further development of an underground wastewater disposal facility.

Sable Environmental, LLC obtained a permit from the Texas Railroad Commission (TRC) to store 20,000-25,000 barrels of wastewater underground in Karnes County, and the decision immediately drew fire from local landowners who are fearful that the water will contaminate their property. After banding together, they filed a lawsuit seeking an injunction to stop the company from proceeding. Judge Wilson denied the request on January 14th, choosing instead to wait on a decision in a similar case before the Texas Supreme Court that will set a precedent for future cases of this nature.

Attorney, Clinton Butler, commented in the San Antonio Business Journal that, “As the Eagle Ford Shale continues its development, I think that we are going to see more and more instances in which the rights of the property owners are going to collide with oil and gas industry’s operations. While property owners should consider the needs of the industry in their decision making, the industry needs to respect the rights that landowners have in their property when conducting their operations. Finding that balance is going to be crucial for the long-term success of the Eagle Ford Shale.”

Wasterwater disposal has become a hot topic as hydraulic fracturing has increased over the last few years. After drilling, the wastewater is cleaned and then pumped deep into injection wells. The potential risks of this practice are still unknown but are commonly connected to increased earthquakes, water contamination and danger to the ecosystem.

Related: New Texas Wastewater Disposal Rules

Related: Eagle Ford Disposal Wells

Read more at the bizjournals.com

]]>
http://eaglefordshale.com/news/wastewater-disposal-continue-texas/feed/ 0
Halcón Plans to Reduce Rigs for 2015 http://eaglefordshale.com/news/halcon-plans-reduce-rigs-2015/ http://eaglefordshale.com/news/halcon-plans-reduce-rigs-2015/#respond Fri, 16 Jan 2015 03:01:33 +0000 http://eaglefordshale.com/?p=7218 El Halcon Eagle Ford Play Map

El Halcón Eagle Ford Play Map | Click to Enlarge

Halcón Resources will reduce its rig count in the El Halcón in East Texas from three to one, according to the company’s press release on January 8th. This is the second round of cuts for the Houston – based company in less than two months with executives citing the continued decline in oil prices as the reason for the move.

Halcón’s spending for 2015 is projected at between $375 – 425 million, representing a steep decline from 2014 numbers of $950 million. Even with these drastic cuts, the company anticipates that production in 2015 will increase to an average of 40,000-45,000 barrels per day. This is compared to 43,554 b/d in the third quarter of 2014.

Read here for more about El Halcón

Halcon CEO Floyd Wilson says that, “Our plan is to deploy capital to assets where results indicate EURs and initial production rates higher than our published type curves. We are comfortable with our current liquidity position and we expect our strong hedge portfolio to continue generating income well into 2016. Although we are significantly hedged, the continued weakness in crude oil prices, combined with elevated service costs, calls for conservative planning. We expect to see these costs come down dramatically during 2015.”

Read the full report at halconresources.com.

Eagle Ford companies are still hiring. For more information go to jobs.eaglefordshale.com

 

]]>
http://eaglefordshale.com/news/halcon-plans-reduce-rigs-2015/feed/ 0
Sanchez Reduces 2015 Capex by 60% http://eaglefordshale.com/news/sanchez-reduces-2015-capex-60/ http://eaglefordshale.com/news/sanchez-reduces-2015-capex-60/#respond Tue, 13 Jan 2015 22:17:30 +0000 http://eaglefordshale.com/?p=7204 sanchez reduces eagle ford rigs

2015 Sanchez Energy Capital Plan | click to enlarge

As oil prices hit new lows, Eagle Ford producers are scrambling to revise budget projections for 2015.

On January 7th, Sanchez Energy joined other companies who are forced to update 2015 capex projections from just two months ago. The company reports that the initial 2015 estimate of $1.15 billion will be slashed almost 60% to $400 – $450 million.

Related: Matador Reduces Eagle Ford Rigs in 2015

Related: ConocoPhillips Announces Capex Reduction in 2015

Tony Sanchez, III, President and Chief Executive Officer of Sanchez Energy, responded to the announcement by saying that due to “the deteriorating commodity price environment, Sanchez Energy has elected to further reduce its 2015 capital plan. Our 2015 drilling plan calls for us to move from 8 gross (7 net) rigs across our Eagle Ford position and 1 gross and net rig in the TMS in the fourth quarter of 2014 to 4 gross (3.5 net) rigs focusing on Catarina and Palmetto in the Eagle Ford and .25 gross and net rigs in the TMS. This represents an approximately 60% reduction in average rig count from fourth quarter 2014 to 2015.”

Despite the drastic cuts, the report predicts that the company will maintain 2014 Q4 production numbers. It is also expected that oil production will continue to rise in 2015 and should average 40,000 to 44,000 barrels a day.

Read complete report at sanchezenergycorp.com

]]>
http://eaglefordshale.com/news/sanchez-reduces-2015-capex-60/feed/ 0
Texas Quakes Alarm Residents http://eaglefordshale.com/news/texas-quakes-alarm-residents/ http://eaglefordshale.com/news/texas-quakes-alarm-residents/#respond Fri, 09 Jan 2015 22:32:20 +0000 http://eaglefordshale.com/?p=7192 Texas Earthquakes

Irving Areas Earthquakes in 2015

Residents in the north Texas community of Irving were rattled on Tuesday by a series of earthquakes that have many anxious for answers. Within a 36 hour period, the U.S Geological Society registered close to a dozen quakes in the region ranging in intensity from a 2.6-3.7 on the richter scale. Though there were no reports of injury, the tremors drew huge concern in an area where quakes are, historically, rare.

Though the amount of earthquakes in Texas hardly compares to our west coast neighbors, they have been on the rise in recent years, causing many to make a connection between increased seismic activity and the fracking throughout the state.

Related: Is Eagle Ford Oil Production Causing Earthquakes?

Several studies including from SMU and UT in Texas and a USGS study in Ohio have linked earthquakes to wastewater injection wells. But this seems unlikely here since there are no such wells in the county and experts warn against jumping to conclusions.

“It’s premature to speculate on the cause of this current series of seismic events,” said Brian Stump, Albritton Chair of Geological Sciences at SMU, in a statement reported in the Dallas Morning News yesterday. “We’re just getting started. We want to support the local community in understanding these earthquakes.”
Robert Williams, a geophysicist with the USGS, told NBC News that “It could just be a natural event that just happened to occur. We’re going to be exploring all possibilities, including any contributions that the oil and gas industry might have in terms of injection of fluids or extraction of fluids in the subsurface.”

Whatever the cause, North Texas residents were clearly shaken and taxed emergency response systems with an overwhelming amount of 911 calls. Additionally local school districts went into quick action and initiated mandatory emergency earthquake drills for school children.

Read more at nbcnews.com

]]>
http://eaglefordshale.com/news/texas-quakes-alarm-residents/feed/ 0
Matador Reduces Eagle Ford Rigs in 2015 http://eaglefordshale.com/news/matador-reduces-eagle-ford-rigs-2015/ http://eaglefordshale.com/news/matador-reduces-eagle-ford-rigs-2015/#respond Wed, 07 Jan 2015 22:48:50 +0000 http://eaglefordshale.com/?p=7183 Matador Pulling Two Rigs in the Eagle Ford in 2015

Matador Pulling Two Eagle Ford Rigs in 2015

Matador Resources Company, a Dallas-based energy company heavily invested in the Texas shale oil industry, announced yesterday that it plans to reduce its operation by cutting production from two rigs in Eagle Ford in 2015.

This is a big move for the company considering that their oil, natural gas and total oil production were at record levels at the end of 2014. Management says that their strategy to narrow drilling efforts to three rigs in its Permian Basin operations is necessary in light of lower oil prices, which have dropped from $100 per barrel in June to below $50. But the company insists that it isn’t abandoning the region entirely.

The report states, “As a result of the Company’s strong execution in the Eagle Ford over the past three years, this asset has become an “oil bank” that Matador can return to and develop further at a future time when commodity prices are more favorable.”

Related: What Lower Oil Prices Mean for Texas and Eagle Ford

Matador was originally scheduled to release its full operational report by mid January, but have moved it to February 15th in order to have more time to better assess their current situation.Everyone is invited to listen in to this presentation and the details can be accessed through the Company’s website on the Presentations & Webcasts page under the Investors tab.

Find out more at matadorresources.com

]]>
http://eaglefordshale.com/news/matador-reduces-eagle-ford-rigs-2015/feed/ 0
Low Crude Prices Not Good for All http://eaglefordshale.com/news/low-crude-prices-not-good/ http://eaglefordshale.com/news/low-crude-prices-not-good/#respond Mon, 05 Jan 2015 12:49:50 +0000 http://eaglefordshale.com/?p=7175 Low prices impacts Texas economy

Impact of Lower Oil Prices

Texas gasoline prices are averaging under $2.00, the lowest we have seen in years. While this was a nice perk for consumers over the holiday season, it is still unclear how cheaper crude will impact the overall health of the Texas economy.

One Washington think tank has estimated that, though many parts of the country will experience a slight economic stimulus in 2015, the lower oil prices will bring a significant downturn in the economic health of energy dependent states.

Unprecedented production in the United States shale plays have contributed to an increase in worldwide oil supplies, resulting in gasoline prices plummeting to their lowest level in almost five years. This has proven to be an economic boom of sorts to American families who are pocketing an additional $25-$75 per month. An additional perk will come as reduced fuel costs will eventually affect the pricing of consumer goods and services.

Stephen Brown with Resources for the Future writes that, “The reduction in oil prices provides US consumers with what amounts to an annual increase in disposable income of $350 billion (about 2.0 percent of US GDP) through reduced prices for gasoline, diesel fuel, other petroleum products, and goods and services whose production uses petroleum products. The average US household will see a raw gain that amounts to $2,790 per year.”

The economic picture is not so rosy for everyone. Energy producers and states that are heavily invested in oil production will take a hit in 2015. Some companies have announced they will slash their budgets, with many predicting cuts in their exploration efforts. This will have a ripple effect that will impact local economies and support industries as tax revenues are reduced and layoffs are inevitable.

And Texas is not immune. The New york Times reports that Hercules Offshore has plans to lay off some 300 employees. This is in addition to the already 2,300 oil and gas jobs lost in Texas from October – November.

Download the entire report from rff.com.

]]>
http://eaglefordshale.com/news/low-crude-prices-not-good/feed/ 0
2014: Record Breaking Year for Texas Oil http://eaglefordshale.com/news/texas-has-record-year/ http://eaglefordshale.com/news/texas-has-record-year/#respond Sun, 04 Jan 2015 01:04:34 +0000 http://eaglefordshale.com/?p=7164 2014 Great Year for Texas Oil

Eagle Ford has record Breaking 2014

With plummeting oil prices garnering much of the recent energy news, it may be easy to forget that 2014 was a record-breaking year for the shale oil industry and Eagle Ford Play specifically.

Here are a some of the record-breaking news stories we covered during 2014:

  • January began with predictions that 2014 would be a banner year for Eagle Ford Shale as analysts suggested that Texas could become the eighth largest oil producing country in the world passing Iraq, Kuwait, and Mexico within the year. This bold announcement was due in part because the EIA noted that U.S. oil production grew faster in 2013 than any other country in over two decades.
  • Even as oil prices declined through the fall months, it was only good news for producers in Eagle Ford. Wood Mackenzie announced in November that Eagle Ford finally hit a long-anticipated milestone as crude production topped one billion barrels.

While the low oil prices make the 2015 uncertain, most analysts predict that U.S. shale will remain strong.

]]>
http://eaglefordshale.com/news/texas-has-record-year/feed/ 0