Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Wed, 01 Apr 2015 15:37:35 +0000 en-US hourly 1 http://wordpress.org/?v=4.1.1 Oil Export Ban Hurts Eagle Ford http://eaglefordshale.com/news/oil-export-ban-hurts-eagle-ford/ http://eaglefordshale.com/news/oil-export-ban-hurts-eagle-ford/#respond Wed, 01 Apr 2015 12:26:51 +0000 http://eaglefordshale.com/?p=7548 Eagle ford

Eagle Ford Hurt Most by Export Ban

A new study from Rice University reveals that the decades-long oil export ban is having the greatest impact on producers in the Eagle Ford Shale region of Texas. The study takes a unique look at the dozens of crude types on the open market and tries to calculate their potential prices in the absence of trade barriers.

Related: Oil Prices Can Vary A Lot Across the U.S.

The oil that is pumped out of the Eagle Ford has less sulpher than WTI or Brent and would attract a higher price on the international market.

According to the report, the U.S. refining infrastructure isn’t designed to handle the domestic crude qualities that are in abundance today, which has caused prices to be lower relative to internationally traded crudes.

Ken Medlock, head of Rice University’s Baker Institute for Public Policy“If the ban were lifted, it would immediately allow the sale of domestic crude oils into the international market, where prices reflect differences in crude quality and therefore would be higher for the light crude oils being produced from shale plays,” Medlock said.

Earlier this month, IHS issued a report on the implications of the current ban and concluded that lifting the export ban could create hundreds of thousands of additional U.S. jobs and add billions to the U.S. economy. The report goes on to say that eliminating the ban will have far-reaching consequences for the U.S. economy including:

  • Further increases in domestic oil production
  • Lower gasoline prices
  • 964,000 additional jobs
  • Benefits to manufacturing and service-related sectors in every state
  • Strengthening national security and America’s position in the world

Related: Oil Export Ban Is Hurting Your Royalty Checks!

Read more at news.rice.edu

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Fracking in Texas Cities: Who’s the Boss? http://eaglefordshale.com/news/fracking-in-texas-cities-whos-the-boss/ http://eaglefordshale.com/news/fracking-in-texas-cities-whos-the-boss/#respond Tue, 31 Mar 2015 13:54:30 +0000 http://eaglefordshale.com/?p=7538

Texas drilling: Who’s in control?

When it comes to drilling oil in Texas, all cities aren’t created equally. Laws and regulations vary from town to town and what is okay in one, might be illegal in another. So, who ultimately gets to decide the rules for fracking in Texas cities?

Since the city of Denton outlawed drilling within the city limits in 2014, the debate over who has the authority to regulate the oil and gas industry has heated up. In recent weeks, the Texas legislature has introduced legislation in both houses that would remove that control from local governments and give it back to the states. 

Related: Fracking Bans in Texas?

SB 1165 and HB 40 both favor state control that would would limit a city’s ability to impose regulations on oil and gas industry activities. The “Denton Fracking Bill” (SB 1165) unanimously passed and asserts that current statutes are already so effective that additional local regulations aren’t necessary . It goes on to say that the act would further “preempt regulation of oil and gas operations by municipalities and other political subdivisions.”

Todd Staples, president of the Texas Oil & Gas Association, said that “The threat to Texas and our state’s biggest economic driver, oil and gas, is real and it’s urgent,” Staples said in his remarks. “This is the very sector that is building our schools, paving our roads and funding our universities. Please make no mistake, this attack is growing and it must be fixed. We join Texans who support local control, but local control does not mean out-of-control.”

Reactions have been swift from local officials, environmental groups and private citizens. The Texas Municipal League was one agency that blasted the decision saying that if city ordinances are nullified, homeowners could be robbed of their property values overnight and would be stripped of their property rights.

Read more at http://www.legis.state.tx.us/

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Eagle Ford Gas Headed to Mexico http://eaglefordshale.com/news/eagle-ford-gas-headed-to-mexico/ http://eaglefordshale.com/news/eagle-ford-gas-headed-to-mexico/#respond Mon, 30 Mar 2015 12:45:15 +0000 http://eaglefordshale.com/?p=7531 Eagle Ford Pipeline to Mexico

Executives from Pemex, BlackRock and First Reserve sign a trans-border pipeline deal.

Petróleos Mexicanos announced Friday that is has acquired the funding to complete the construction of the pipeline Los Ramones II for an estimated $900 million.

The deal was a collaboration between Blackrock and First Reserve will be one of the first projects for Mexico’s historic energy reform that will enable a low-cost energy supply and create jobs. The first part of this project, the Ramones I, ranges from Eagle Ford in Texas to Los Ramones, Nuevo León and phase II will reach Guanajuato to supply the central and western parts of the country.

Related: Eagle Ford Natural Gas is Headed for Mexico

Jim Barry, CEO of the Infrastructure Investment Group of BlackRock commented that “Participation of the private sector in infrastructure will be very important in Mexico, and around the world. Given the recent reforms, growth in Mexico and economic stability, investment opportunities in Mexican infrastructure have definitely drawn our attention and we hope to explore other opportunities in the near future.”

The terms of the deal commit BlackRock to $4.6 billion and First Reserve to $30 million over 25 years and gives them a combined 45 percent control of the project.

Related: Eagle Ford Shale in Mexico Needs Private Investment

Mexico’s rising demand for natural gas has created a lucrative export industry for Eagle Ford producers in recent years. The country hopes to lessen its dependence on other sources by tapping into its own shale oil and natural gas within the next five to 10 years.

Read more at pemex.com

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Eagle Ford Rigs Down to 153 http://eaglefordshale.com/drilling-rig-count/eagle-ford-rigs-down-to-153/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-rigs-down-to-153/#respond Fri, 27 Mar 2015 18:58:46 +0000 http://eaglefordshale.com/?p=7529 be safe. be smart.

TxDot Works to Make Roads Safer

The Eagle Ford Shale rig count decreased by three to 153 rigs running across our coverage by midday Friday.

In recent Eagle Ford news, TxDOT reveals that Texas oil regions saw a surge in traffic deaths in 2014 including 272 people who died  in traffic accidents in the Eagle Ford. Roadways have continued to deteriorate over the past few years as more traffic and heavy trucks damage roads and make for unsafe conditions.

Read more: Eagle Ford Traffic Deaths Increase 13%

The U.S. rig count fell another 21 to 1048 rigs running as of today. A total of 233 rigs were targeting natural gas (down nine from the previous week) and 814 were targeting oil in the U.S. (41 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 462 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 declined by three to 13 rigs by midday Friday. Natural gas prices decreased $.18 from the previous week at $2.61/mmbtu on Friday afternoon.

The oil rig count remained flat at 137 rigs running by midday. WTI oil prices increased $4.33 from the previous week, trading at $50.05/bbl on Friday afternoon and EF light ended up $5.75 at $48.00. A total of 144 rigs are drilling horizontal wells, two rigs are drilling directional wells, and vertical rigs fell to four.  Karnes (24), DeWitt (21), and Webb (19)and LaSalle (17),  have the highest rig counts this week. 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 26 24 FAYETTE 1 1
DE WITT 21 21 MADISON 0 1
WEBB 19 19 ROBERTSON 1 1
LA SALLE 17 17 AUSTIN 0 0
DIMMIT 15 14 BEE 0 0
MCMULLEN 12 13 COLORADO 0 0
GONZALES 10 11 GOLIAD 0 0
LIVE OAK 7 6 GRIMES 0 0
ATASCOSA 3 5 LEE 0 0
LAVACA 7 5 LEON 1 0
FRIO 3 4 MAVERICK 1 0
BURLESON 3 3 MILAM 0 0
ZAVALA 3 3 WASHINGTON 0 0
BRAZOS 1 1 WILSON 1 0
DUVAL 1 1 BASTROP 0 0

Eagle Ford Shale News

Chesapeake to Reduce Spending by $500 Million

Enlink Midstream Aquires Pipeline Company

Talisman Energy Cuts Jobs

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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Enlink Midstream Aquires Pipeline Company http://eaglefordshale.com/news/enlink-midstream-aquires-pipeline-company/ http://eaglefordshale.com/news/enlink-midstream-aquires-pipeline-company/#respond Thu, 26 Mar 2015 15:14:33 +0000 http://eaglefordshale.com/?p=7524 Victoria Express Pipeline

Victoria Express Pipeline |Click to Enlarge

Enlink Midstream Partners announced Monday it will acquire Victoria Express Pipeline (VEX) from Devon, giving the new company a “strategic footprint” into the Eagle Ford Shale play.

Read more about the VEX

The deal is estimated to be worth $220 million and includes the following assets:

  • A 56-mile multi-grade crude oil pipeline
  • Facilities at the Port of Victoria with an eight-bay truck unloading terminal and 200,000 barrels of above ground storage
  • Facilities near the origin of the pipeline (under construction) including an eight-bay truck unloading terminal and 160,000 barrels of above-ground storage
  • A condensate pipeline from the Eagle Ford Shale to Victoria

The transaction, expected to close on or about April 1st, is the first of many between Devon and Enlink (formerly Crosstex), who announced a partnership in 2014.

Read more about Devon in the Eagle Ford

Barry E. Davis, EnLink President and Chief Executive Officer. “This transaction marks the first dropdown from Devon to EnLink, and we expect transactions like this to play a significant role in our future growth. These assets will give EnLink a tremendous growth platform in the Eagle Ford Shale. We look forward to providing high-quality midstream services to producers and marketers in the Eagle Ford area.”

Read more at enlink.com

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Eagle Ford Traffic Deaths Increase 13% http://eaglefordshale.com/news/eagle-ford-traffic-deaths-increase-13-percent/ http://eaglefordshale.com/news/eagle-ford-traffic-deaths-increase-13-percent/#respond Wed, 25 Mar 2015 17:48:17 +0000 http://eaglefordshale.com/?p=7520 Gravel Road In The Eagle Ford

Gravel Road In The Eagle Ford

Texas oil regions saw a surge in traffic deaths in 2014 including 272 people who died  in traffic accidents in the Eagle Ford. According to TxDOT, this is an increase of 13 percent over 2013, where 240 people were killed in the 26-county region.

Overall in the Eagle Ford last year, there were 3,658 traffic accidents in which people were killed or seriously injured, up from 3,446 the year before. This is a high percentage of the 8,600 accidents reported statewide.

Related: Another Fatal Crash in the Eagle Ford

Roadways have continued to deteriorate over the past few years as more traffic and heavy trucks damage roads and make for unsafe conditions. Over the years, several several efforts have been put into place to address the road conditions including assembling a task force in 2012 and TxDOT’s Be Safe. Drive Smart. campaign that was launched over the summer.

TxDOT spokeswoman Laura Lopez said that “The number of deaths have increased. We want to remind folks, especially in the energy sector areas, to watch out for those 18-wheelers. And the same message to those in the 18-wheelers, ‘Watch out for vehicles.’ ”

The San Antonio New Express reports that there is a recent surge in road construction across the oil regions to improve conditions and make things safer. Several projects underway in the Eagle Ford include repairs of $5.8 million to Texas 97, FM 1099 and FM 1344 in Wilson and Atascosa counties as well as widening and repair of FM 1916 in Dimmit County at a cost of $999,000.

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Chesapeake to Reduce Spending by $500 Million http://eaglefordshale.com/news/chesapeake-to-reduce-spending-by-500-million/ http://eaglefordshale.com/news/chesapeake-to-reduce-spending-by-500-million/#respond Tue, 24 Mar 2015 14:47:21 +0000 http://eaglefordshale.com/?p=7514 Chesapeake Cuts Budget for 2015

Chesapeake Cuts Budget for 2015

Chesapeake Energy announced on Monday it plans further cuts to its 2015 capital spending. The company will reduce spending, cut rigs and slow production in order to navigate the current low crude pricing environment.

For 2015, Chesapeake will spend $3.5 billion to $4 billion, a $500 million reduction from its last update in February.

Other important spending updates include:

  • Plans to spud and connect to sales approximately 520 and 650 gross operated wells, respectively, in 2015 (a decrease from 1,175 and 1,150 wells in 2014) 
  • Connect to sales approximately 650 gross operated wells, respectively, in 2015 (a decrease from 1,175 and 1,150 wells in 2014).
  • Lowering its targeted 2015 production to 231 236 million barrels of oil equivalent, or average daily production of 635 645 thousand barrels of oil equivalent, which represents 1 3% production growth over the prior year after adjusting for 2014 asset sales.
Doug Lawler, Chesapeake’s Chief Executive Officer, said, “We entered 2015 with a strong liquidity position and we intend to manage it prudently. In response to continued weak commodity prices, we are further reducing capital expenditures and associated drilling activity. As a result, we now forecast ending 2015 with approximately $6 billion in combined cash and borrowing capacity under our credit facility. With this budget revision we anticipate being free cash flow neutral by the end of 2015.”

Legal trouble continues to plague Chesapeake. In January, the company agreed to pay $119 million to settle a class action suite from 2013 that included thousands of royalty owners involving possibly 10,000 wells. And, most recently, a group of landowners in  Bradford County, PA filed a suit alleging that Chesapeake and Williams Partners violated antitrust laws by conspired to restrain trade in the market for gas gathering services. Read more here.

Chesapeake Energy is active all across the Eagle Ford including Atascosa County, Dimmit County, Duval County, Frio County, Goliad County, LaSalle County, McMullen County, Washington County, Webb County and Zavala County.

Photo: © Larryhw | Budget Cuts / Inflation Photo

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Talisman Energy Cuts Jobs http://eaglefordshale.com/news/talisman-energy-cuts-jobs/ http://eaglefordshale.com/news/talisman-energy-cuts-jobs/#respond Mon, 23 Mar 2015 16:33:17 +0000 http://eaglefordshale.com/?p=7507 Talisman Cuts Jobs

Talisman Cuts Jobs

Talisman Energy Inc., with extensive holdings in the Eagle Ford shale play, announced this week that it is cutting its workforce due to the continuing drop in crude prices.

Related: Energy Giants Announce Layoffs

Layoffs will affect between 150-200 employees and contractors from Talisman’s head office in Calgary. These cuts coincide with the company’s plans to trim its 2015 capital program to $2.1 billion, a 30 percent drop from 2014. So far, the company has not announced any job cuts in its Texas operations.

Talisman spokesperson, Brent Anderson, commented to Bloomberg that “Our decision to reduce our workforce numbers is based on the decline in global commodity prices, which has meant a reduced capital spending program for us this year. The impacts of the reductions are hitting all functions supporting all parts of the organization.”

Oil prices have fluctuated since the first of the year. After a short move upwards, the price has hovered around the mid forties for the past two weeks.

In February, Talisman Energy shareholders finalized the sale of the company to Repsol and expected to close in the second quarter of 2015. The company announced that job cuts are unrelated to this acquisition.

Read more: Repsol to Aquire Talisman Energy

Talisman’s interests in the Eagle Ford shale play are located in southeast Texas, where the Company now holds approximately 59,000 net acres of land in the following counties:

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Eagle Ford Rig Count Down 10 http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-down-10/ http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-down-10/#respond Fri, 20 Mar 2015 20:45:29 +0000 http://eaglefordshale.com/?p=7505 Mineral Owners May be Losing Money

Mineral Owners May be Losing Money

The Eagle Ford Shale rig count decreased by 10 to 153 rigs running across our coverage by midday Friday.

In recent Eagle Ford news, mineral owners are finding they must be extra vigilant to make sure their interests are protected. A four year statute of limitations to correct royalty payment errors has many mineral owners scrambling to make sure they are being treated fairly. 

Read more: Mineral Owners Race the Clock in Texas

The U.S. rig count fell another 56 to 1069 rigs running as of today. A total of 242 rigs were targeting natural gas (down 15 from the previous week) and 825 were targeting oil in the U.S. (41 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)  465 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 declined by one to 16 rigs by midday Friday. Natural gas prices increased $.06 from the previous week at $2.79/mmbtu on Friday afternoon.

The oil rig count declined by 15 to 137 rigs running by midday. WTI oil prices increased $.91 from the previous week, trading at $45.72/bbl on Friday afternoon and EF light ended up $1.00 at $42.25. A total of 145 rigs are drilling horizontal wells, two rigs are drilling directional wells, and vertical rigs were at six.  Karnes (26), LaSalle, DeWitt (21), and Webb (19) have the highest rig counts this week. 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 29 26 FAYETTE 0 1
DE WITT 19 21 LEON 2 1
WEBB 19 19 MAVERICK 1 1
LA SALLE 20 17 ROBERTSON 1 1
DIMMIT 15 15 WILSON 1 1
MCMULLEN 15 12 BASTROP 0 0
GONZALES 10 10 AUSTIN 0 0
LAVACA 7 7 BEE 0 0
LIVE OAK 8 7 COLORADO 1 0
ATASCOSA 3 3 GOLIAD 0 0
BURLESON 3 3 GRIMES 0 0
FRIO 3 3 LEE 0 0
ZAVALA 3 3 MADISON 1 0
BRAZOS 1 1 MILAM 0 0
DUVAL 1 1 WASHINGTON 0 0


Eagle Ford Shale News

Halcón Announces 2014 Earnings

Chesapeake Lawsuit Adds to Legal Trouble

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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Chesapeake Lawsuit Adds to Legal Trouble http://eaglefordshale.com/news/chesapeake-lawsuit-adds-to-legal-trouble/ http://eaglefordshale.com/news/chesapeake-lawsuit-adds-to-legal-trouble/#respond Wed, 18 Mar 2015 13:57:04 +0000 http://eaglefordshale.com/?p=7493
White Tail Deer at Center of Lawsuit

White Tail Deer at Center of Lawsuit

Legal trouble continues to haunt Chesapeake Energy as mineral owners dispute royalty payments and contracts. This week, white tailed deer are at the center of another lawsuit that is now in a San Antonio court.

A recent lawsuit filed in January, claims that a Chesapeake employee hunted, killed and removed the white-tailed deer that roamed the Dimmett County property of James Birkner. Birkner’s lease with Chesapeake dates from 2010 and does not authorize hunting by Chesapeake employees on this land. Once the allegations were made, the company abruptly ended negotiations to renew its lease and vanished from the property. The claims against Chesapeake include negligence, trespass and breach of contract.

The company has other legal trouble. In January, the company agreed to pay $119 million to settle a class action suite from 2013 that included thousands of royalty owners involving possibly 10,000 wells. And, most recently, a group of landowners in  Bradford County, PA filed a suit alleging that Chesapeake and Williams Partners violated antitrust laws by conspired to restrain trade in the market for gas gathering services.

In February, Chesapeake filed a lawsuit against American Energy Partners alleging that ex CEO Aubrey McClendon stole confidential documents including maps of oil and gas prospects before leaving the company in 2013. Read more here

With more and more Texas lease holders scrutinizing their royalty statements the company may have more to worry about. Read more:  Mineral Owners Race the Clock in Texas

Chesapeake is active all across the Eagle Ford including Atascosa County, Dimmit County, Duval County, Frio County, Goliad County, LaSalle County, McMullen County, Washington County, Webb County and Zavala County.

 

© Nicolaselowe | Dreamstime.comWhite-tailed Deer Photo

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