Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Mon, 29 Jun 2015 13:04:30 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.2 Pipeline Inspectors May Soon Carry Guns http://eaglefordshale.com/news/pipeline-inspectors-may-soon-carry-guns/ http://eaglefordshale.com/news/pipeline-inspectors-may-soon-carry-guns/#respond Mon, 29 Jun 2015 13:00:58 +0000 http://eaglefordshale.com/?p=8165 Eagle Ford Roadways Used for Criminal

Eagle Ford Roadways Used for Criminals

The drug war is now affecting parts of the Eagle Ford as pipeline inspectors express concern for their safety.

As energy companies moved into the Eagle Ford, they have cleared brush and build dirt roads in order to make way for pipelines to carry their product.

This development has had the unintended consequence of providing potential pathways for those smuggling drugs and illegal immigrants, and officials now fear that criminals may come into contact with energy company employees, regulators and landowners.

The issue of the drug cartels exploiting the Eagle Ford Shale’s network of private roads has been a concern since 2012.

Related: Drug Smugglers Using Location Roads to Bypass Border Patrol

Texas Railroad Commission Chairman David Porter said “The federal government has been ineffective in preventing illegal activity along the border and with the unprecedented amount of oil and gas activity in the Eagle Ford Shale in recent years, Commission inspectors in South Texas have voiced concerns about their safety. It is the Railroad Commission’s duty to protect the health and safety of all Texans – and as Railroad Commissioners, this responsibility extends to ensuring that our staff is protected while doing this important work.”

Porter has implemented policy changes to keep inspectors safe including:

  • Ensuring that RRC staff and inspectors who want to carry firearms for self-protection on duty have the opportunity to obtain their concealed handgun license in a timely manner.
  • Requiring inspectors in areas of concern to use the “buddy system” to ensure they are not alone in potentially dangerous areas.
  • Purchasing cell phone boosters for inspector vehicles in remote areas of South Texas that are close to the border and have limited access to mobile communications.

For more  information, go to rrc.state.tx

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Eagle Ford Rig Count Up to 119 http://eaglefordshale.com/news/eagle-ford-rig-count-up-to-119/ http://eaglefordshale.com/news/eagle-ford-rig-count-up-to-119/#respond Fri, 26 Jun 2015 08:00:17 +0000 http://eaglefordshale.com/?p=8162 Eagle Ford Rigs Increase

Eagle Ford Rigs Increase

The Eagle Ford Shale rig count increased this week to 119 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, the Energy Information Administration reported last week that Eagle Ford Shale gas production increased by 349% in the past eight years, even as rig counts plummeted.

Read more: Eagle Ford Natural Gas up 349%

The U.S. rig count increased slightly, ending with 859 rigs running by midday Friay.  A total of 228 rigs were targeting natural gas (five more the previous week) and 628 were targeting oil in the U.S. (three less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)  361 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 stayed flat at 26 this week and natural gas prices traded at $2.77/mmbtu, an decrease of  $.05 from the previous week.

The oil rig count increased by two to 91 with WTI oil prices remaining stable at $59.63, an $.02 increase. A total of 109 rigs are drilling horizontal wells, one rig are drilling directional wells, and seven are vertical rigs. Karnes leads development this week and is running 20 rigs, while LaSalle (19) and Webb (16) follow closely. 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 19 20 FAYETTE 1 1
LA SALLE 20 19 FRIO 2 1
WEBB 16 16 GRIMES 0 1
DE WITT 16 15 LAVACA 1 1
DIMMIT 12 12 AUSTIN 0 0
GONZALES 7 7 BEE 0 0
MCMULLEN 5 6 COLORADO 0 0
MADISON 3 4 GOLIAD 0 0
ATASCOSA 3 3 LEE 0 0
BURLESON 2 2 LEON 0 0
DUVAL 1 2 MAVERICK 0 0
LIVE OAK 2 2 MILAM 0 0
ROBERTSON 2 2 WASHINGTON 0 0
ZAVALA 2 2 WILSON 0 0

Eagle Ford Shale News

Twin Eagle Expands Eagle Ford Operations

Japan Eyes Eagle Ford Natural Gas

Birthday of 2014 Oil Crash

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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Twin Eagle Expands Eagle Ford Operations http://eaglefordshale.com/news/twin-eagle-expands-eagle-ford-operations/ http://eaglefordshale.com/news/twin-eagle-expands-eagle-ford-operations/#respond Thu, 25 Jun 2015 11:20:03 +0000 http://eaglefordshale.com/?p=8146 Twin Eagle Acquires StarMex Big Wells

Twin Eagle Acquires StarMex Big Wells

Twin Eagle Resource Management announced this week it will acquire another 42 miles of pipeline in the Eagle Ford.

Related: Eagle Ford Shale Midstream Sold

Houston-based Twin Eagle says the deal gives them 100 percent interest in StarMex Big Wells, LLC,  a crude oil gathering system pipeline that connects to the major long-haul pipelines in the Gardendale area.

“The acquisition of StarMex Big Wells is exciting for the Twin Eagle brand as we continue to diversify our logistics and midstream offerings to our clients,” said Griff Jones, Twin Eagle’s chief executive officer. “We are looking forward to working with producers in the area to develop valuable gathering solutions to move their crude oil.”

The company’s press release states that the pipeline system has capacity of 35,000 bopd and is backed by long-term, fee-based contracts with existing customers that are committed to ship approximately 24,000 bopd.

StarMex Big Wells will be renamed Twin Eagle Gardendale Pipeline, LLC.

While many companies have curbed spending during the downturn, others have taken advantage of new opportunities to expand their operations:

  • Enterprise Products Partners (EPD) will acquire Eagle Ford Shale (EFS) Midstream for a total price of $2.15 billion. Read more
  • Repsol completed its acquisition of Talisman Energy last month and became one of the largest companies in the energy sector worldwide. Read more
  • Houston -based EP Energy plans to expand its presence in the Eagle Ford by adding new training, office and warehouse space to its operations in Dilley. Read more

Read the press release at twineagle.com

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Japan Eyes Eagle Ford Natural Gas http://eaglefordshale.com/news/japan-eyes-eagle-ford-natural-gas/ http://eaglefordshale.com/news/japan-eyes-eagle-ford-natural-gas/#respond Wed, 24 Jun 2015 12:18:44 +0000 http://eaglefordshale.com/?p=8132 Japan Eyes Eagle Ford Natural Gas

Japan Eyes Eagle Ford Natural Gas

Natural gas from the Eagle Ford Shale may soon be making its way to Japan.

A delegation from the Consulate General of Japan is in Texas this week touring facilities in Freeport, Houston, Moulton and San Antonio as they look to the Eagle Ford as a potential source of much needed natural gas.

Related: More Pipelines Cross Texas-Mexico Border

In 2011, Japan suffered a devastating earthquake that wrecked a great deal of its energy infrastructure, which centered on nuclear power. None of Japan’s nuclear reactors reactors have reopened since the quake and officials have turned to natural gas as a way to to generate electricity as an alternative to nuclear power.

While this seems like a win-win for all sides there are some serious administrative hurdles to getting Texas gas to Japan.

Former Japanese Ambassador Yasuo Saito told the San Antonio Business Journal that “Japan and the United States do not currently have a free trade agreement, which means that natural gas producers in Texas need to obtain an extra permit from the U.S. Department of Energy before they can ship natural gas to Japan.”

Many are looking to the Trans-Pacific Partnership to ease the burden and make trade possible. This will be important as our domestic production continues to outpace our demand. EIA analysts predict that America will transition from a net importer of natural gas to a net exporter by 2017 as we increase domestic production, which will reduce our demand for gas imports from Canada and support growth in exports to Mexico, Asia and Europe.

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Birthday of 2014 Oil Crash http://eaglefordshale.com/news/birthday-of-2014-oil-crash/ http://eaglefordshale.com/news/birthday-of-2014-oil-crash/#respond Tue, 23 Jun 2015 16:41:13 +0000 http://eaglefordshale.com/?p=8102 Crude Price History

Crude Price History

This week marks the birth of the 2014 oil crash and a closer look suggests that things aren’t as bad as some predicted.

What started as a slow decline in June 2014 accelerated into a full-blown crash throughout the fall. When prices finally bottomed out in March, they had dropped by more than half from over $105.00 to $48.00.

By last December, uncertainty fueled the news machines and cries of doom became commonplace. Some analysts predicted 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.

Read more:  Oil Bust Brings Opportunities

Cutting Costs: Over the last few month, producers have been forced to tighten their budgets and change their strategies in order to stay competitive. These tactics have worked well and first quarter results show many companies have been able to stay the course and gain strength by slashing costs associated with drilling through greater efficiencies and supplier reductions.

  • Sanchez reported Q1 costs at 30 to 40% below fourth quarter 2014
  • Matador reduced operating costs 30% to 40% for Q1
  • Continental’s drilling and completion costs fell by 15%
  • EOG announced it has benefitted greatly from the pull-back in activity and progress is being made to lowering cost in each phase of their operations

Innovation: Cutting edge producers are pushing the science and technology to new levels as they work to get the most out of their resources. These include advancements in 3-D seismic research, telemetry, remote guidance and innovations in  CO2 or nitrogen-style completions.

A Wall Street Journal article recently said that this increased efficiency has fundamentally changed the industry. “Oil production is becoming a modern manufacturing process. The frackers are engaged in ‘just-in-time’ production, analogous to the methods pioneered by Japanese manufacturers in the 1970s and 1980s, which led directly to hyper-efficient global supply-chain management perfected by Wal-Mart in the 1990s.”[/sws_blue_box

Economic Impact: Thousands of jobs have been cut across all sectors of the industry, but both Texas and North Dakota report that the oil crisis has had minimal impact on their states. Data shows that Texas dipped in the first quarter but is already showing signs of a rebound and the North Dakota Department of Commerce boasts that the ND economy is still booming.

Dropping Rig Counts: The national and regional rig counts took a big hit this year as producers pulled rigs offline to save money. Many report that these wells are waiting in the wings and are ready to be put back into production later this year.

Record Production: Even in light of the price drop, production over the last 12 months has been at record levels. The EIA data published this month shows that global petroleum oversupply has more than doubled to 2.6 million bpd since the end of the second quarter last year and they expect the oversupply to last at least until 2017.

 

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Eagle Ford Natural Gas up 349% http://eaglefordshale.com/news/eagle-ford-natural-gas-up-349/ http://eaglefordshale.com/news/eagle-ford-natural-gas-up-349/#respond Mon, 22 Jun 2015 13:09:01 +0000 http://eaglefordshale.com/?p=8092 Eagle Ford Natural Gas May 2015 | click to enlarge

Eagle Ford Natural Gas May 2015 | click to enlarge

The Energy Information Administration reported last week that Eagle Ford Shale gas production increased by 349% in the past eight years, even as rig counts plummeted.

Related: Eagle Ford Shale Midstream Sold

In May 2007, the region was producing 1.63 Bcf per day with less than 100 rigs, and one year ago 260 drilling rigs were producing around 6.2 Bcf per day. In May 2015, the region produced a record 7.33 Bcf per day while running about 120 rigs.

At the start of 2014, the Eagle Ford was producing less gas than either the Barnett or the Haynesville. However, as of June 2015, Wood Mackenzie estimates that the Eagle Ford is producing approximately 5.2 bcfd of gas, which is 34% more than the Barnett and 15% more than the Haynesville.

For the first time in many months, Webb County has taken over Texas top gas production spot for the month of March, producing 55,645,145 MCF compared to Tarrant County’s 53,003,565 MCF.

Eagle Ford is quickly gaining ranks as a major natural gas producer with companies such as Anadarko, Chesapeake, Swift and Rosetta growing production as they successfully reduced cycle times and maximize scale in the play.

 

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Eagle Ford Rig Count at 115 http://eaglefordshale.com/news/8086/ http://eaglefordshale.com/news/8086/#respond Sat, 20 Jun 2015 12:57:47 +0000 http://eaglefordshale.com/?p=8086 Eagle Ford Rig Count Increases

Eagle Ford Rig Count Increases

The Eagle Ford Shale rig count increased by one to 115 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, XTO and Enervest were summoned to Austin last week to try and persuade the Texas Railroad Commission that their operations are not to blame for recent earthquakes in North Dallas.

Read more: Producers Defend Fracking Practices

The U.S. rig count slowed its decline this week falling by two to 857 rigs running by midday Friday.  A total of 223 rigs were targeting natural gas (dtwo more than the previous week) and 631 were targeting oil in the U.S. (four less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)  363 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 rose another four to 26 this week and natural gas prices traded at $2.82/mmbtu, an increase of $.06 from the previous week.

The oil rig count decreased by three to 89 with WTI oil prices moving down this week to $59.61, an $.37 decrease. A total of 109 rigs are drilling horizontal wells, one rigs are drilling directional wells, and five are vertical rigs. LaSalle led the Eagle Ford count with 20 rigs, while Karnes (19), Webb (16) and DeWitt (16)following closely. 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
LA SALLE 21 20 DUVAL 1 1
KARNES 19 19 FAYETTE 2 1
DE WITT 16 16 LAVACA 1 1
WEBB 16 16 AUSTIN 0 0
DIMMIT 11 12 BASTROP 1 0
GONZALES 8 7 BEE 0 0
MCMULLEN 4 5 COLORADO 0 0
ATASCOSA 2 3 GOLIAD 0 0
MADISON 3 GRIMES 0 0
BURLESON 2 2 LEE 0 0
FRIO 3 2 LEON 0 0
LIVE OAK 2 2 MAVERICK 0 0
ROBERTSON 2 2 MILAM 0 0
ZAVALA 2 2 WASHINGTON 0 0
BRAZOS 1 1 WILSON 0 0

Eagle Ford Shale News

Pipeline Explodes in DeWitt County

EP Energy Expands Operations

Karnes County Explosion Proves Costly

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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Karnes County Explosion Proves Costly http://eaglefordshale.com/news/karnes-county-explosion-proves-costly/ http://eaglefordshale.com/news/karnes-county-explosion-proves-costly/#respond Thu, 18 Jun 2015 12:36:09 +0000 http://eaglefordshale.com/?p=8079 Encan Corp Q1

Encan Corp Q1

Almost one month after a fiery oil rig explosion in Karnes county, Encana Corp released final figures to state regulators.

Encana Corp. reported that the accident released over 760,000 pounds of crude oil and possibly tens of thousands of pounds of gas and into the air. The company estimates that the crude was worth more than $197,000.

The county sheriff called the May 19th accident the ‘worst environmental disaster in more than 20 years’, leaving trees, fields, roads and houses covered in oil and displacing numerous families.

Related: Karnes County Accident Worst in 20 Years

The clean up has been a massive effort and has included subcontractors to control runoff, pump out nearby stock tanks, evaluate livestock, take soil samples, evaluate vegetation, clean homes and repair nearly half a mile of roadway on FM 792.

First quarter results for Encana show improved production and lower costs for its Eagle Ford operations. Highlights include:

  • Drilled its fastest three wells to date and reduced normalized drilling costs by 15%
  • Reduced drilling and completion costs by $1 million per well
  • Promising early results from new wells in an area known as the Graben
  • Base optimization efforts reduced decline rates by 50%
  • 27 net wells were drilled
  • Liquids production averaged 36,000 bbls/d

Read more at encana.com

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EP Energy Expands Operations http://eaglefordshale.com/news/ep-energy-expands-operations/ http://eaglefordshale.com/news/ep-energy-expands-operations/#respond Wed, 17 Jun 2015 12:31:45 +0000 http://eaglefordshale.com/?p=8076 EP Energy Expands in Texas

EP Energy Expands in Texas

Houston -based EP Energy plans to expand its presence in the Eagle Ford by adding new training, office and warehouse space to its operations in Dilley.

Related: Penn Virginia Invests in the Eagle Ford

EP Energy currently holds over 91,000 acres in the Eagle Ford with activity in La Salle and Atascosa counties. In addition to adding 8,300 square feet of work, the $1.3 million construction project will likely add new jobs to the area.

The company reported strong first quarter results for its Eagle Ford operations and touted improved well performance and significantly lowering well costs. Additionally, about two-thirds of the Q1 capital was allocated to the Eagle Ford program.

Clay Carrell – COO, said “We also continue to see execution improvements. We have reduced our average drilling cycle times from 10 days to 9 days and this is in an asset that we have been drilling in for over five years. Our 40-acre development is driving cost efficiencies, due to the use of three and four well pads. Importantly this development is improving our reserve recoveries per section which results in improved returns from our capital program.”

Q1 Highlights for Eagle Ford:

  • Completed 38 wells across its Eagle Ford program
  • Grew oil production to 38.0 MBbls/d, a 20 percent increase compared with the same period in 2014
  • Total equivalent production was 54.7 MBoe/d, an 18 percent increase compared with the same period in 2014
  • Reducing the midpoint of our per unit cost ranges by over 5%
  • Reduced the average drilling cycle times from 10 days to 9 days
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Pipeline Explodes in DeWitt County http://eaglefordshale.com/news/dewitt-county-explosion/ http://eaglefordshale.com/news/dewitt-county-explosion/#respond Tue, 16 Jun 2015 14:23:11 +0000 http://eaglefordshale.com/?p=8035 DeWitt County Pipeline Explosion

DeWitt County Pipeline Explosion

An underground pipeline belonging to Energy Transfer Partners exploded late Sunday in DeWitt County near the town of Cuero.

The explosion sparked a massive fire and caused several area homes to be evacuated as a precaution. There were no injuries and all residents were able to return home safely.

Clean-up from the blast will involve crews replacing sections of the pipeline that were damaged. include repairs on a stretch of roadway that melted under the heat of the fire as well as

The San Antonio Business Journal reported that “Sheriff Zavesky said the fire died down around 11:30 pm Sunday, but a trench where the affected pipeline was buried could still be seen smoldering on Monday afternoon.”

Officials from Texas Railroad Commission, Energy Transfer Partners and county officials are investigating the accident.

This is the second explosion of its kind in the Eagle Ford since the beginning of the month. An accident at an Encana Corp well last month is still wreaking havoc on a small area of Karnes County.

Related: Karnes County Accident Worst in 20 Years

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