Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Fri, 28 Aug 2015 18:00:39 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.2 Eagle Ford Loses More Rigs http://eaglefordshale.com/news/8358/ http://eaglefordshale.com/news/8358/#respond Fri, 28 Aug 2015 17:55:48 +0000 http://eaglefordshale.com/?p=8358 Eagle Ford Rigs

Eagle Ford Rigs

The Eagle Ford Shale rig count fell this week to 110 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, oil production in the region increased slightly during July. After production fell in May by 50,000 barrels per day, it increased a slighttly from June to July by 10,000 barrels a day. Average production throughout the region was 1.6 million b/d, about 17% higher than July 2014.

Read more: Eagle Ford Production up 1%

The U.S. rig count decreased by eight, ending with 877 rigs running by midday Friday.  A total of 202 rigs were targeting natural gas (nine less than the previous week) and 675 were targeting oil in the U.S. (one more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)  383 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties. The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table near the bottom of this article.

Eagle Ford Oil & Gas Rigs

Natural gas rigs in the Eagle Ford decreased again to 15 this week as natural gas prices traded at $2.71/mmbtu, a $.03 increase from the previous week.

The oil rig count was at 95 as WTI oil prices rose to $44.99, an increase of $4.54. A total of 101 rigs are drilling horizontal wells, one is drilling directional wells, and eight are vertical rigs. Karnes County continues to lead development this week running 19 rigs, with DeWitt (18), following closely behind. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by Count

County Previous Week Current Week County Previous Week Current Week
KARNES 21 19 COLORADO 1 1
DE WITT 17 18 GOLIAD 0 1
LA SALLE 11 11 GRIMES 1 1
MCMULLEN 11 11 LIVE OAK 2 1
WEBB 10 10 MADISON 1 1
DIMMIT 11 9 MAVERICK 0 1
GONZALES 4 5 WILSON 1 1
ATASCOSA 4 4 AUSTIN 0 0
BURLESON 4 4 FAYETTE 0 0
FRIO 3 3 LAVACA 2 0
ZAVALA 2 3 LEON 0 0
DUVAL 2 2 MILAM 0 0
LEE 2 2 ROBERTSON 0 0
BEE 2 1 WASHINGTON 0 0
BRAZOS 1 1 BASTROP 0 0

Eagle Ford Shale News

Will Re-Fracking Save the Eagle Ford?

Mexico Oil Swap Not Significant

NextEra Energy Moves into the Eagle Ford

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 Baker Hughes and not solely wells targeting the Eagle Ford 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

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Will Re-Fracking Save the Eagle Ford? http://eaglefordshale.com/news/will-re-fracking-save-the-eagle-ford/ http://eaglefordshale.com/news/will-re-fracking-save-the-eagle-ford/#respond Thu, 27 Aug 2015 17:27:13 +0000 http://eaglefordshale.com/?p=8354 Eagle ford

Re-fracking in the Eagle Ford

As Eagle Ford oil and gas producers tighten their budgets and look to new innovations to stay afloat, some are considering re-fracking as a way to cut costs and continue the boom.

Related: Shale Oil: The Sky’s the Limit

The Eagle Ford and other shale formations in the U.S. have been the source of an historic oil boom since 2008, but have only harvested a fraction of the available oil, according to the Houston Chronicle.

Re-fracking is when producers work to get more oil out of depleted or under-performing wells by blasting the shale oil deposits with water, chemicals and sand for a second time. This is a very cost effective measure that can be up to two-thirds less than new drilling.

Halliburton’s, Priyesh Ranjan, told the Chronicle that “There’s so much low-hanging fruit. There’s an obvious push for everybody to think about how to achieve more with less.”

Refracking certainly has its critics. It is a risky practice and seen as a gamble because if drillers re-frack too closely to an adjacent well, it can damage the other wells.

Jonathan Garret of wood Mackenzie commented, “This technology is very much in its infancy and it’s not going to be something that’s going to change the game or move the needle at least in the near term.”

Even with the controversy, re-fracking might be the answer for producers to stay competitive. In a recent study of 66 companies, the IHS found that in the first quarter of 2015 they had to write down nearly $29 billion in the value of their assets, which exceeded the total for the full year of 2014. Read more about the Fierce Competition in the Eagle Ford

Read the cmplete article at houstonchronicle.com

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NextEra Energy Moves into the Eagle Ford http://eaglefordshale.com/news/nextera-energy-moves-into-the-eagle-ford/ http://eaglefordshale.com/news/nextera-energy-moves-into-the-eagle-ford/#respond Wed, 26 Aug 2015 19:21:39 +0000 http://eaglefordshale.com/?p=8351 Eagle Ford Deals

Eagle Ford Deals

NextEra Energy Partners LP will purchase NET Midstream to gain foothold in the Eagle Ford.

Related:  Oil & Gas Deals in the Eagle Ford

NextEra Energy Partners LP announced this month that they are moving forward with a deal to purchase NET Midstream, which will include seven natural gas pipelines in Texas.  The $2.1 billion deal will give the company future potential to ship 1billion cubic feet of shale gas a day. The largest asset in NextEra’s acquisition will be pipelines that deliver gas to Mexico under a 20-year contract with Pemex, the state-owned energy company.

Related:Eagle Ford Shale and Mexico: An Important Partnership

NextEra Chief Financial Officer Moray Dewhurst told Bloomberg that “Natural gas demand in Mexico has been growing substantially. At the same, time Mexico-based natural gas supply has been declining, which we believe increases Mexico’s need for U.S. gas.”

Through this deal, NextEra will move into the Eagle Ford by purchasing a pipeline that connects to U.S. and Mexican markets and the Monument Pipeline, along with four smaller lines that supply power plants and households.

Mexico has been anxious to increase its imports for natural gas and has been working lots of deals since the country’s energy reforms were passed last year. Mexico’s current demand for the commodity is currently outstripping its ability to provide the demand.

Read more at nexteraenergyresources.com

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Mexico Oil Swap Not Significant http://eaglefordshale.com/news/mexico-oil-swap-not-significant/ http://eaglefordshale.com/news/mexico-oil-swap-not-significant/#respond Tue, 25 Aug 2015 13:59:40 +0000 http://eaglefordshale.com/?p=8348 Oil Exports

Oil Exports

Last week’s buzz surrounding the U.S. swapping oil with Mexico may end up being more hype than reality.

Read more: Swapping Oil with Mexico

The U.S Commerce Department opened the door last week for a limited amount of oil to be exported to Mexico when it approved an application from Pemex that would allow for the U.S. to exchange our light crude for Mexico’s heavy crude.

Many were hoping this signified a shift in opinion about the oil export ban that has been in effect since the 1970’s, but some analysts are now saying that the effort may be mostly symbolic.

Mark Broadbent, an analyst at Wood Mackenzie told FuelFix that there’s little evidence that regulators are prepared to offer a similar exception for crude exports to more far-flung countries. “In terms of the actual impact on the U.S. refining, it’s a small step.”

Despite the ban on oil exports since the 1970s, the U.S. still imports a large amount of heavy oil from Mexico and Canada. Between January and May 2015, it is estimated that U.S. refineries imported about 700,000 barrels per day of Mexican crude.

Mexico wants our lighter crude oil because it allow their refineries to shift their output toward valuable gasoline and away from less valuable fuel oil. Wood Mackenzie estimates that Mexico uses about 300,000 barrels per day of gasoline more than it produces.

Read more at fuelfix.com

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Eagle Ford Production up 1% http://eaglefordshale.com/news/eagle-ford-production-up-1/ http://eaglefordshale.com/news/eagle-ford-production-up-1/#respond Mon, 24 Aug 2015 13:39:09 +0000 http://eaglefordshale.com/?p=8344 Eagle Ford Oil

Eagle Ford Oil

Eagle Ford oil production increased slightly during July, according to Bentek Energy

After peaking in April are the highest levels since 1971, analysts predicted that U.S. oil production would continue to decline through the early part of next year bringing supply and demand back into balance.

Related:EIA: U.S. Oil Production Has Peaked

Eagle Ford production fell in May by 50,000 barrels per day and then increased10,000 barrels a day, a slight 1% from June to July. Average production throughout the region was 1.6 million b/d, about 17% higher than July 2014.

Analyst Sami Yahya said, “Initial production (IP) rates have been improving, especially in the oily window of the Eagle Ford Basin. As well, producers in the Eagle Ford are currently drilling 2.5 wells per rig per month, which is higher than the national average of 1.5 wells. Drill times have been improved from an average of 15 days per well in 2014 to roughly 11 days per well in 2015.”

The Eagle Ford continues to lead other shale basins in efficiency gains and internal rates of return of around 18%. Bentek reports that the Bakken formation is just behind the Eagle Ford with drilling decreasing from about 15 days per well in late 2014 to about 13 days per well during the second quarter of this year.

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113 Rigs in the Eagle Ford http://eaglefordshale.com/drilling-rig-count/113-rigs-in-the-eagle-ford/ http://eaglefordshale.com/drilling-rig-count/113-rigs-in-the-eagle-ford/#respond Sat, 22 Aug 2015 01:04:23 +0000 http://eaglefordshale.com/?p=8342 Eagle Ford Rigs

Eagle Ford Rigs

The Eagle Ford Shale rig count fell this week to 113 rigs running across our coverage area as crude prices continue to fall. 

In recent Eagle Ford news, the Commerce Department has given permission for a limited amount of oil to be exported to Mexico. The agency approved an application from Pemex, Mexico’s national oil company, that would allow for the U.S. to exchange our light crude for Mexico’s heavy crude.

Read more: Swapping Oil with Mexico

The U.S. rig count increased by one, ending with 885 rigs running by midday Friday.  A total of 211 rigs were targeting natural gas (the same as the previous week) and 674 were targeting oil in the U.S. (two more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)   383 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties. The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table near the bottom of this article.

Eagle Ford Oil & Gas Rigs

Natural gas rigs in the Eagle Ford increased to 22 this week and natural gas prices traded at $2.68/mmbtu, a $.13 decrease from the previous week.

The oil rig count was at 91 as WTI oil prices dropped again to $40.45, a decrease of $1.68. A total of 102 rigs are drilling horizontal wells, one are drilling directional wells, and 10 are vertical rigs. Karnes County continues to lead development this week running 21 rigs, with DeWitt (17), following closely behind. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by Count

County Previous Week Current Week County Previous Week Current Week
KARNES 21 21 ZAVALA 2 2
DE WITT 18 17 BRAZOS 1 1
DIMMIT 10 11 COLORADO 1 1
LA SALLE 10 11 GRIMES 1 1
MCMULLEN 11 11 MADISON 1 1
WEBB 11 10 WILSON 1 1
ATASCOSA 5 4 AUSTIN 0 0
BURLESON 4 4 FAYETTE 0 0
GONZALES 4 4 GOLIAD 1 0
FRIO 3 3 LEON 0 0
BEE 2 2 MAVERICK 1 0
DUVAL 2 2 MILAM 0 0
LAVACA 2 2 ROBERTSON 0 0
LEE 2 2 WASHINGTON 0 0
LIVE OAK 2 2 BASTROP 0 0

Eagle Ford Shale News

David Porter: EPA Rulings Will Kill Jobs

Is it “Doomsday” in the Eagle Ford?

Rancher Sues Fracking Operators

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 Baker Hughes and not solely wells targeting the Eagle Ford 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

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David Porter: EPA Rulings Will Kill Jobs http://eaglefordshale.com/news/david-porter-epa-rulings-will-kill-jobs/ http://eaglefordshale.com/news/david-porter-epa-rulings-will-kill-jobs/#respond Thu, 20 Aug 2015 15:01:54 +0000 http://eaglefordshale.com/?p=8338 EPA to Limit Emissions

EPA to Limit Emissions

New federal regulations designed to cut methane emissions in the oil and gas industry have the Texas Railroad Commission up in arms.

Related: New Ruling to Slash Methane Emissions

President Obama revealed the latest regulations as part of his broader plan to fight climate change. The plan requires oil and gas companies to cut methane pollution from drilling sites, distribution systems and in other areas of operation by 32 percent from 2005 levels by 2030.

Oil and gas producers are already fatigued from months of low crude prices and new regulations may be more than most can handle. The EPA estimates that the ruling might cost the industry as much as $420 million.

Commenting on the new ruling, Texas Railroad Commission Chairman David Porter said, “Like the Clean Power Plan, these burdensome rules will be used by the EPA as a weapon in President Obama’s war on fossil fuels. These excessive regulations are another blatant attack on the oil and gas industry that will further impede America’s energy security, kill jobs and put even more stress on our national and state economies.”

Methane is the key component of natural gas and has a high impact on global warming — up to 25 times that of carbon dioxide. In April, a nationwide study showed that methane emissions across the United States had dropped significantly in the past two decades and are much lower than current Environmental Protection Agency estimates.  Read more here

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Is it “Doomsday” in the Eagle Ford? http://eaglefordshale.com/news/8331/ http://eaglefordshale.com/news/8331/#respond Wed, 19 Aug 2015 14:48:10 +0000 http://eaglefordshale.com/?p=8331 Oil Prices Fall to Six Year Low

Oil Prices Fall to Six Year Low

The oil bust is taking its toll on the Eagle Ford.

Since June 2014, crude oil prices that have plunged from over $100 down to new lows of under $43. The U.S hasn’t seen these types of prices in almost seven years and the effects of the prolonged pricing is being seen, especially in the small towns of the Eagle Ford.

Related: Summary of the Oil Bust

Hydraulic fracturing literally changed the landscape of many rural areas in the Eagle Ford. As the surge in oil production it unleashed a whirlwind of growth, construction and population explosions. But as the low oil prices hang around, the bankruptcies, mergers and layoffs are affecting these towns the most.

Vi Malone, the Karnes County treasurer, told NYTimes that “Everybody is waiting for doomsday. Everything was good, and everybody was getting these big checks, and everybody waited for their land to be leased, and then it all came to a screeching halt around the beginning of the year.”

Producers have been forced to tighten their budgets and change their strategies in order to stay competitive. And while these tactics have worked for some, the prolonged low prices are forcing many to resort to extreme measures to save their bottom line.

Related: Fierce Competition in the Eagle Ford

In a recent study of 66 companies, the IHS found that in the first quarter of the year alone they had to write down nearly $29 billion in the value of their assets, which exceeded the total for the full year of 2014. These measures by big producers are squeezing out many local service companies who are being forced to drastically reduce their prices and fees, causing a ripple effect that negatively impacts all parts of small local economies. 

The future is unclear and uncertainty and predictions of doom are now commonplace. Some analysts forecasted possible economic ruin for oil-dependent states and others warned of the crippling of the industry. But many seasoned oilmen saw the downturn as a wake up call of sorts and an opportunity for producers to take a hard look at their systems, processes, personnel, technology and strategies outside of the frenetic pace the boom required.

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Rancher Sues Fracking Operators http://eaglefordshale.com/news/rancher-sues-fracking-operators/ http://eaglefordshale.com/news/rancher-sues-fracking-operators/#respond Tue, 18 Aug 2015 16:39:14 +0000 http://eaglefordshale.com/?p=8328 Explosion

Explosion

A rancher in Perrin, Texas sues several fracking operators after a serious explosion on his property left him permanently disfigured and disabled.  

Related: Karnes County Explosion Proves Costly

Cody Murray, a 38-year-old husband and father, sustained extensive burns when a giant fireball erupted from the pump house on his property in early August. Murray’s father, wife and four year old daughter also sustained injuries.

Court records claim that the explosion was caused by methane gas that leaked into the well from nearby fracking operations run by EOG Resources, Fairway Resources LLC and three Fairway subsidiaries.

The complaint states that  “Rigorous scientific testing, including isotope testing, has conclusively demonstrated that the high-level methane contamination of the Murrays’ water well resulted from natural gas drilling and extraction activities. The high levels of methane in the Murrays’ well were not ‘naturally occurring.'”

Shale gas is composed of 90 percent methane. The colorless, odorless and tasteless gas is very explosive and has been in the center of the debate over natural gas drilling. A peer-reviewed study out of Duke University found that methane levels in private water wells averaged 17 times higher in wells that are within 1,000 feet of a natural gas drilling site.

Cody also suffered significant neurological damage in the fire, as well as paresthesias and extreme weakness in his hands and arms. In the lawsuit filed last week, the Murrays are seeking damages for negligence, trespass, nuisance, lost wages, physical impairment, pain and suffering, continuing medical care, disfigurement and loss of consortium. 

Read more at courthousenews.com

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Swapping Oil with Mexico http://eaglefordshale.com/news/swapping-oil-with-mexico/ http://eaglefordshale.com/news/swapping-oil-with-mexico/#respond Mon, 17 Aug 2015 16:16:14 +0000 http://eaglefordshale.com/?p=8323 Oil Export Ban

Oil May Soon Flow to Mexico

Producers in the Eagle Ford are one step closer to being able to ship light crude to Mexico, thanks to a new policy by the U.S. Commerce Department last Friday.

Related: Eagle Ford Companies Eye Mexico

The Commerce Department has given permission for a limited amount of oil to be exported to Mexico. The agency approved an application from Pemex, Mexico’s national oil company, that would allow for the U.S. to exchange our light crude for Mexico’s heavy crude. The amount of crude that would be involved is minimal, but the new policy is significant because it signifies a shift in opinion about the oil export ban that has been in effect since the 1970’s.

Representative Henry Cuellar released a statement saying, “Texas will gain tremendously from this oil swap agreement. The petroleum industry in Texas, in large part due to shale production, such as the Eagle Ford Shale in my district, has revitalized our nation’s economy. These swaps will further positively impact energy exploration in Texas and the United States.”

Many senators hope that lifting the export ban will level the playing field by doing away with restrictions that hinder America’s economic growth and that threaten our long-term goal of becoming energy independent. In June, Heidi Heitkamp took to the Senate floor to try and persuade fellow lawmakers that the oil export ban is not good for the country. Read more

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