Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Fri, 05 Feb 2016 19:43:28 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.2 Eagle Ford Rig Count Falls Below 70 http://eaglefordshale.com/news/eagle-ford-rig-count-falls-below-70/ http://eaglefordshale.com/news/eagle-ford-rig-count-falls-below-70/#respond Fri, 05 Feb 2016 19:43:28 +0000 http://eaglefordshale.com/?p=9205 Eagle Ford Rig Counts

Eagle Ford Rigs Counts Hold Steady

The Eagle Ford Shale rig count fell by five this week with 68 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, the Texas Work Force Commission announced that new layoffs in the oil and gas industry will total over 539 jobs, adding to the strain of the current downturn.

Read more: More Job Cuts for Texas

A total of 571 oil and gas rigs were running across the United States this week, which is a drop of 48 over last week. 104 were targeting natural gas (17 less than the previous week) and 467 were targeting oil in the U.S. (31 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 262 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 below.

Eagle Ford Oil & Gas Rigs

Natural gas rigs in the Eagle Ford are at five this week as natural gas prices declined, trading at $2.04/mmbtu, a $.36 decrease from the previous week.

The Eagle Ford oil rigs dropped to 63 with WTI oil prices ending the week at $31.32, a decrease of $4.67. A total of 64 rigs are drilling horizontal wells, zero are drilling directional wells, and four are vertical rigs.

Karnes County leads the region in development with 15 rigs this week. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

County Previous Week Current Week County Previous Week Current Week
KARNES 18 15 ROBERTSON 0 1
DE WITT 10 11 AUSTIN 0 0
WEBB 9 8 BEE 0 0
DIMMIT 5 6 BRAZOS 1 0
LA SALLE 7 5 COLORADO 2 0
LIVE OAK 1 4 FAYETTE 1 0
ATASCOSA 4 3 GOLIAD 0 0
ZAVALA 1 3 GRIMES 1 0
BURLESON 2 2 LEE 0 0
GONZALES 4 2 LEON 0 0
LAVACA 1 2 MAVERICK 0 0
MADISON 2 2 MILAM 0 0
MCMULLEN 3 2 WASHINGTON 0 0
DUVAL 1 WILSON 0 0
FRIO 2 1 BASTROP 0 0

Eagle Ford Shale News

NuStar Reports Record Earnings

More Job Cuts for Texas

Murphy Oil to Spend $340 in Eagle Ford in 2016

 

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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NuStar Reports Record Earnings http://eaglefordshale.com/news/nustar-reports-record-earnings/ http://eaglefordshale.com/news/nustar-reports-record-earnings/#respond Thu, 04 Feb 2016 20:15:49 +0000 http://eaglefordshale.com/?p=9201 NuStar 2015 Financials

NuStar 2015 Financials

NuStar Energy, a pipeline operator in the Eagle Ford, announces the highest recorded EBITDA in the company’s history for full year 2015.

Related:  First Eagle Ford Crude Ships to Europe

In a recent press release, NuStar reported $662.7 million of EBITDA for the year ending December 31, 2015,  a 21% increase over the same time last year.

In recent years, much of NuStar’s growth has been around their assets in Eagle Ford. Following are the company’s comments for the fourth quarter and full year 2015.

  • Total Eagle Ford volumes average about 238,000 barrels per day
  • Record Eagle Ford throughputs at our Corpus Christi North Beach terminal
  • Eagle Ford operations comprise less than 20% of our total 2015 segment EBITDA
  • Approximately 73% of our Eagle Ford revenues are committed under long-term take-or-pay contracts with strong creditworthy customers
  • Throughputs in the company’s Eagle Ford assets were down 18% in the fourth quarter of 2015 compared to the record throughput levels we reached in the first quarter of the year
  • The company forecasts Eagle Ford throughput slightly above our minimum volume commitments for all of 2016
“Our 2016 capital spending projections remain unchanged. We have budgeted to spend $360 to $380 million for strategic capital and $35 to $45 million on reliability capital spending. The Eagle Ford portion of our business is a narrow slice of our operations and comprises less than 20% of our total 2015 segment EBITDA.

In other NuStar news, the company partnered with ConocoPhilips to ship the first load of Eagle Ford sweet crude from Corpus Christi just two weeks after the Obama Administration repealed the 40-year oil export ban.

Read more at NuStarEnergy.com

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More Job Cuts for Texas http://eaglefordshale.com/news/more-job-cuts-for-texas/ http://eaglefordshale.com/news/more-job-cuts-for-texas/#respond Tue, 02 Feb 2016 13:54:57 +0000 http://eaglefordshale.com/?p=9196 More Texas Jobs Cuts

More Texas Jobs Cuts

News of more Texas job cuts circulated around the news wires yesterday, adding to the strain of the current downturn.

Related: Upcoming Job Fairs in the Eagle Ford

The beginning of 2016 has been less than stellar as the situation in the oil and gas industry continues to deteriorate. Throughout January, crude prices fluctuated wildly dipping to below $30 at one point, while rig counts across the country dropped to 619 last week. Additionally,industry giants Halliburton and Schlumberger announced a new rash of layoffs last month that will cut 14,000 job cuts nationwide.

The news is Texas is not any better with the Texas Workforce Commission reporting new layoffs in the oil and gas industry that will total over 539 jobs.

The TWC is reporting the following job cuts since January 1st:

  • Maersk Drilling: 80 jobs in January
  • Noble Drilling: 120 jobs in March
  • Southwestern Energy Company:  376 jobs in March
  • Tenaris Corp.: 166 jobs in March
  • National Oilwell Varco: 129 jobs in May
  • Quicksilver Resources Inc: 164 jobs in April. The company filed for Chapter 11 bankruptcy in March of 2015 and plans to sell all of its assets while working to restructure its businesses.

After oil prices began their decent last year, it took a little time for the reality of the low oil prices to finally trickle down. But by October 2015, the industry lost an estimated 200,000 jobs with around 60,000 in Texas alone.

Read more at Texas Workforce Commission website

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Murphy Oil to Spend $340 in Eagle Ford in 2016 http://eaglefordshale.com/news/murphy-oil-to-spend-340-in-eagle-ford-in-2016/ http://eaglefordshale.com/news/murphy-oil-to-spend-340-in-eagle-ford-in-2016/#respond Mon, 01 Feb 2016 19:47:56 +0000 http://eaglefordshale.com/?p=9184 Murphy Oil's 2015 Financials

Murphy Oil’s 2015 Financials

Murphy Oil executives release 2015 numbers showing their Eagle Ford operations have remained resilient and exceed expectations.

Related: Murphy Oil’s Operations in the Eagle Ford

In a press release last week, Murphy Oil announced a net loss of $587.1 million for 2015. The company’s full year volumes were 200,753 boepd in the fourth quarter and 207,903 boepd for full-year 2015.
Eagle Ford Highlights for 2015

The Eagle Ford Shale outperformed company expectations for 2015, with highlights including:

  • Q4 production averaged over 57,000 boepd with 27 operated wells brought online.
  • Full-year 2015 production averaged over 61,200 boepd with 136 operated wells brought online.
  • Eagle Ford Shale had a fourth quarter operating expense of just under $8.50 per BOE. And we expect this to be a reasonable run rate going forward.

For 2016, Murphy is planning 2016 capital expenditures for operations to be $825.0 million with approximately 41 percent will be allocated toward the Eagle Ford Shale. This $340 million will be targeted primarily for drilling and completions in the Eagle Ford. The company also announced plans to drill a second Austin Chalk well in the first quarter of 2016.

When discussing cost-cutting measure, President and CEO, Roger W. Jenkins said “We have a lot of flexibility in the Eagle Ford. And we can go down $100 million there if we want to. And that’s the beauty of these plays is you can slow it down. More difficult in offshore.”

Murphy Oil End of Year 2015 Highlights

  • Produced volumes of 200,753 boepd in the fourth quarter and 207,903 boepd for full-year 2015
  • Spent $2.19 billion capital in 2015, $0.11 billion below guidance of $2.3 billion
  • Recorded total proved reserve replacement of 123 percent in 2015, including 10 percent Malaysian sell-down in first quarter 2015
  • Achieved first production at Dalmatian South #2 in the Gulf of Mexico
  • Delivered 136 Eagle Ford Shale wells during 2015, with 648 operated wells at year-end
  • Reduced lease operating expense per barrel by over 18 percent year-over-year
  • Lowered G&A expense by approximately 16 percent year-over-year

Read more at MurphyOilCorp.com

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Eagle Ford Rig Count Remains Steady http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-remains-steady-4/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-remains-steady-4/#respond Sat, 30 Jan 2016 18:54:14 +0000 http://eaglefordshale.com/?p=9182 Eagle Ford Rig Counts

Eagle Ford Rigs Counts Hold Steady

The Eagle Ford Shale rig count remained flat this week with 74 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, Juan Martin Bernal of Eagle Pass was sentenced to 21 months in federal prison for his role in stealing $1.4 million in Eagle Ford Shale oil. Bernal was one of three defendants who pleaded guilty to one count of theft from an interstate shipment.

Read more: Eagle Ford Oil Thief Behind Bars

A total of 619 oil and gas rigs were running across the United States this week. 121 were targeting natural gas (six less than the previous week) and 498 were targeting oil in the U.S. (12 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 281 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 below.

Eagle Ford Oil & Gas Rigs

Natural gas rigs in the Eagle Ford are at two this week as natural gas prices climbed, trading at $2.30/mmbtu, a $.16 increase from the previous week.

The Eagle Ford oil rig stayed at 71 with WTI oil prices ending the week at $35.99, an increase of $3.81. A total of 68 rigs are drilling horizontal wells, zero are drilling directional wells, and six are vertical rigs. Karnes County leads the region in development with 18 rigs this week. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

County Previous Week Current Week County Previous Week Current Week
KARNES 18 18 LAVACA 1 1
DE WITT 10 10 LIVE OAK 1 1
WEBB 9 9 ZAVALA 1 1
LA SALLE 7 7 AUSTIN 0 0
DIMMIT 5 5 BEE 0 0
ATASCOSA 4 4 DUVAL 0 0
GONZALES 4 4 GOLIAD 0 0
MCMULLEN 3 3 LEE 0 0
BURLESON 2 2 LEON 0 0
COLORADO 2 2 MAVERICK 0 0
FRIO 2 2 MILAM 0 0
MADISON 2 2 ROBERTSON 0 0
BRAZOS 1 1 WASHINGTON 0 0
FAYETTE 1 1 WILSON 0 0
GRIMES 1 1 BASTROP 0 0

Eagle Ford Shale News

Eagle Ford Production Up Slightly

Oilfield Waste is Still Big Business

Abraxas’ Leadership Team Cuts Pay

agle Ford Oil Thief Behind Bars

 

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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Eagle Ford Production Up Slightly http://eaglefordshale.com/news/eagle-ford-production-up-slightly-2/ http://eaglefordshale.com/news/eagle-ford-production-up-slightly-2/#respond Thu, 28 Jan 2016 18:05:02 +0000 http://eaglefordshale.com/?p=9175 Eagle Ford Shale January 2016Oil volumes coming out of the Eagle Ford increased slightly in December, as producers remain engaged in a ‘survival of the fittest’ struggle.

Related: Eagle Ford Counties Lead Production

Analyst group, Platts Bentek, reported this week that oil production in the Eagle Ford went relatively unchanged in December. Though the slight increase of 11,000 barrels a day is statistically irrelevant, it is a welcome relief after months of decline.

December’s average oil production from the Eagle Ford was 1.5 million barrels per day, a 7% decrease year-over-year from 2014.

Analyst Sami Yahya said “The small increase in crude production in the Eagle Ford shale is attributed to a slight resurgence in drilling activity in the region. In December, the number of active rigs in the Eagle Ford reached 80, an increase of five rigs over the previous month. The brief rebound of active rigs is likely due to producers balancing their drilling programs and budgets for the fourth quarter and meeting their goals for wells drilled for the year.”

Looking to the future, the U.S. Energy Information Administration (EIA) predicted that volumes from the seven major shale regions in the U.S. will drop by 116,000 barrels a day in February with the Eagle Ford having the biggest losses, possibly dropping 72,000 barrels a day to 1.15 million.

Producers in the region are feeling the pinch as more and more struggle to stay afloat amidst this unstable environment.

“It is survival of the fittest: the best and most efficient rigs and crews remain standing on the field,” Yahya noted. 

Read more at platts.com

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Oilfield Waste is Still Big Business http://eaglefordshale.com/news/milestone-environment-adds-eagle-ford-assets/ http://eaglefordshale.com/news/milestone-environment-adds-eagle-ford-assets/#respond Wed, 27 Jan 2016 19:34:09 +0000 http://eaglefordshale.com/?p=9164 Milestone Adds to its Eagle Ford Portfolio

Milestone Adds to its Eagle Ford Portfolio

One waste management company is adding to their assets in the Eagle Ford region of South Texas and plans for further expansion in 2016.

Related: Natural Gas Will be a Boom for Eagle Ford Companies

In the middle of the downturn, many operators and oil and gas service industries are shrinking, but Milestone Environmental Services, LLC announced this week that it will expand.

Milestone has acquired an oilfield waste facility currently under construction near Smiley, in Gonzalez County, Texas through a newly-formed subsidiary with Intervale Capital.

Houston-based Milestone manages oilfield waste through their state-of-the-art disposal facilities. The company already has an extensive footprint in the Eagle Ford region that includes four injection locations, with two other locations in Katy and Jasper, Texas.

Tuan Tran, Partner at Intervale commented, “The Smiley transaction marks the successful completion of the first stage of Milestone’s geographic expansion.”

Acquisitions have become an attractive growth option for Milestone. Even in the middle of the downturn, the company believes that waste management in the oilfield is underserved. In a separate press release, the company announced plans to fund acquisitions throughout 2016.

President and CEO Gabriel Rio said “We recognize we are pursuing a contrarian strategy to build service capacity during the worst downturn in a couple decades. We want to put capacity in places where the industry needs it. We can do this with good returns today that should be excellent down the road when the market recovers.”

For more information go to milestone-es.com

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Abraxas’ Leadership Team Cuts Pay http://eaglefordshale.com/news/abraxas-leadership-team-cuts-pay/ http://eaglefordshale.com/news/abraxas-leadership-team-cuts-pay/#respond Tue, 26 Jan 2016 18:17:22 +0000 http://eaglefordshale.com/?p=9159 Abraxas Leadership Team Takes Pay Cut

Abraxas Leadership Team Takes Pay Cut

The leadership team of Abraxas Petroleum is following the example of their CEO by voluntarily cutting their fees in a drastic measure to stay afloat.

Related: Abraxas Chief Slashes Salary

In a Securities and Exchange Commission filing this week, the executive officers of Abraxas announced that they will take a voluntary reduction in salary of 20%, effective February 1, 2016. Also taking cuts will be Abraxas employees who meet certain salary thresholds and the Board of Directors, who have agreed to take a 20% reduction in their fees.

In September, 2015, Abraxas’ president and CEO, Robert Watson voluntarily cut his salary by 20 percent due to stressful market conditions. This was in the middle of a rough quarter where Abraxas posted a net loss of $52.4 million  and the company’s production fell to 552,000 barrels of oil equivalent from 645,000 barrels.

Things changed drastically since 2014, when the company reported its best year on record and compensated Robert Watson over $900,000.

2016 has gotten off to a rough start as the Eagle Ford rig count continued its decline, ending last week with only 74 rigs running across the area. Analysts are predicting that the Eagle Ford will lead the pack for huge losses in early 2016. Read more: 

Abraxas currently operates on ~10,891 net Eagle Ford acres in Atascosa, McMullen, DeWitt and Lavaca counties.

Access the SEC filing here

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Eagle Ford Oil Thief Behind Bars http://eaglefordshale.com/news/eagle-ford-oil-thief-behind-bars/ http://eaglefordshale.com/news/eagle-ford-oil-thief-behind-bars/#respond Mon, 25 Jan 2016 14:50:29 +0000 http://eaglefordshale.com/?p=9156 Texas oil theft

Texas Lawmakers Go After Oil Theft

One Eagle Ford oil thief is now behind bars and two of his buddies are soon to follow.

Related: Oil Theft Climbs in the Eagle Ford

Last Wednesday, United States District Judge Alia Moses sentenced Juan Martin Bernal of Eagle Pass to 21 months in federal prison for his role in stealing $1.4 million in Eagle Ford Shale oil. Bernal was one of three defendants who pleaded guilty to one count of theft from an interstate shipment.

As part of his sentence, Bernal will also be required to pay a monetary judgment of $150,000 and will be placed on supervised release for a period of three years after completing his prison term.

Last year, Bernal and two co-defendants, 26-year-old Carlos Samuel Pena of Del Rio and 38-year-old Victor Manuel Guerra, Jr., the owner of Las Lomas Vacuum Services and AVG Vacuum Services in Laredo, pleaded guilty to one count of theft from an interstate shipment.

Bernal and two co-defendants–26–year-old Carlos Samuel Pena of Del Rio and 38-year-old Victor Manuel Guerra, Jr., admitted that between January 2011 and August 2014, they devised a scheme to steal oil from Newfield Exploration Company, and Anadarko Petroleum Corporation.

Guerra owned Las Lomas Vacuum Services and AVG Vacuum Services in Laredo and the trio used his wastewater removal trucks to transport the stolen oil. The oil was transported to Guerra’s property where he would sell the stolen product to third-party buyers who paid for the oil by wire transfer.

Guerra and Pena face up to ten years in federal prison. Guerra’s sentencing is April 25 and Pena’s is June 20. Both are scheduled to appear in Del Rio before Moses.

The case relied on an army of local, state and federal officials who were involved in the investigation including the FBI, the IRS Service Criminal Investigation, the Texas Attorney General’s Special Investigations Unit, the Bexar County District Attorney’s Office, the Texas Department of Public Safety, the Texas Rangers, the Dimmit County Sheriff’s Office and the Texas Railroad Commission.

In December,Texas lawmakers met in Austin to discuss the growing problem of oil theft in the Texas oil patch and to craft a bill that would increase the penalties for the crime. This is likely to be one of the top energy issues for the next legislative session in 2017, as lawmakers aim to send Abbott an anti-theft bill he can stomach.

House Speaker Joe Straus asked lawmakers to “Examine whether current statutes are adequate for the successful prosecution of oilfield theft. Consider the potential economic impact of increasing penalties for oil and gas theft and make recommendations establishing an effective law enforcement response.”  

Read more about this case at www.justice.gov

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Eagle Ford Rig Count Drops to 74 http://eaglefordshale.com/news/9149/ http://eaglefordshale.com/news/9149/#respond Sat, 23 Jan 2016 15:20:28 +0000 http://eaglefordshale.com/?p=9149 Eagle Ford Rig Counts

Eagle Ford Rigs Counts Hold Steady

The Eagle Ford Shale rig count declined by four this week ending with 74 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, the Energy Information Administration (EIA) reported that in 2017, natural gas exports will surpass imports for the first time since 1955. With hundreds of miles of natural gas pipelines heading from the Eagle Ford and Permian Basin to the Gulf Coast, the liquefied natural gas industry is poised to deliver the majority of those exports.

Read more:Natural Gas Will be a Boom for Eagle Ford Companies

A total of 637 oil and gas rigs were running across the United States this week. 127 were targeting natural gas (eight less than the previous week) and 510 were targeting oil in the U.S. (five less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 294 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 below.

Eagle Ford Oil & Gas Rigs

Natural gas rigs in the Eagle Ford are at two this week as natural gas prices dipped, trading at $2.14/mmbtu, a $.04 increase from the previous week.

The Eagle Ford oil rig count fell to 72 with WTI oil prices ending the week at $32.19, an increase of $2.77. A total of 72 rigs are drilling horizontal wells, zero are drilling directional wells, and six are vertical rigs. Karnes County leads the region in development with 18 rigs this week. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

County Last Week This Week County Last Week This Week
KARNES 18 18 LAVACA 1 1
DE WITT 11 10 LIVE OAK 1 1
WEBB 9 9 ZAVALA 1 1
LA SALLE 10 7 AUSTIN 0 0
DIMMIT 4 5 BEE 0 0
ATASCOSA 5 4 DUVAL 0 0
GONZALES 4 4 GOLIAD 0 0
MCMULLEN 2 3 LEE 0 0
BURLESON 2 2 LEON 0 0
COLORADO 2 2 MAVERICK 0 0
FRIO 2 2 MILAM 0 0
MADISON 2 2 ROBERTSON 0 0
BRAZOS 1 1 WASHINGTON 0 0
FAYETTE 1 1 WILSON 1 0
GRIMES 1 1 BASTROP 0 0

Eagle Ford Shale News

Eagle Ford Counties Lead Production

Iranian Oil and Crude Prices

BHP Writes Down Billions

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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