Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Fri, 12 Feb 2016 20:00:44 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.2 Texas-Wide Rig Count Down Another 14 http://eaglefordshale.com/news/texas-wide-rig-count-down-another-14/ http://eaglefordshale.com/news/texas-wide-rig-count-down-another-14/#respond Fri, 12 Feb 2016 19:50:27 +0000 http://eaglefordshale.com/?p=9246 Eagle Ford Rig Counts

Eagle Ford Rigs Counts Hold Steady

The Eagle Ford Shale rig count fell by three this week with 65 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, President Obama continues to push additional legislation that will push more oil and gas operators out of business. The latest move is a controversial oil tax embedded in his $4.1 trillion budget request he prosed this week.

Read more:Oil Tax Would Crush Eagle Ford Companies

A total of 541 oil and gas rigs were running across the United States this week, which is a drop of 48 over last week. 102 were targeting natural gas (2 less than the previous week) and 439 were targeting oil in the U.S. (28 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 248 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 $1.96/mmbtu, an $.08 decrease from the previous week.

The Eagle Ford oil rigs dropped to 60 with WTI oil prices ending the week at $29.58, a decrease of $1.74. A total of 60 rigs are drilling horizontal wells, zero are drilling directional wells, and five 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 15 15 ROBERTSON 1 1
DE WITT 11 9 AUSTIN 0 0
WEBB 8 7 BEE 0 0
DIMMIT 6 6 BRAZOS 0 0
LA SALLE 5 6 COLORADO 0 0
LIVE OAK 4 4 FAYETTE 0 0
MCMULLEN 2 3 GOLIAD 0 0
ZAVALA 3 3 GRIMES 0 0
ATASCOSA 3 2 LEE 0 0
BURLESON 2 2 LEON 0 0
GONZALES 2 2 MAVERICK 0 0
MADISON 2 2 MILAM 0 0
DUVAL 1 1 WASHINGTON 0 0
FRIO 1 1 WILSON 0 0
LAVACA 2 1 BASTROP 0 0

Eagle Ford Shale News

Oil Tax Would Crush Eagle Ford Companies

AWE Exits the Eagle Ford and Carrier Moves In

Cabot Oil Slashes 2016 Budget

 

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

]]>
http://eaglefordshale.com/news/texas-wide-rig-count-down-another-14/feed/ 0
Cabot Oil Slashes 2016 Budget http://eaglefordshale.com/news/cabot-oil-slashes-2016-budget/ http://eaglefordshale.com/news/cabot-oil-slashes-2016-budget/#respond Thu, 11 Feb 2016 12:56:34 +0000 http://eaglefordshale.com/?p=9214 Eagle Ford producer, Cabot Oil and Gas reduces their projected 2016 spending by nearly 50%.

Related: Cabot Oil & Gas Reducing Rigs in the Eagle Ford

Cabot announced last week it will cut its 2016 capital budget to $325 million as a result of the continued low pricing environment. This is a reduction 58 percent from the 2015 capital program of $774 million.

“We have reduced our 2016 capital program in response to the lower commodity price environment and its anticipated impact on our operating cash flow for the year,” said Dan O. Dinges, Chairman, President and Chief Executive Officer. “Our reduction in capital spending reflects our commitment to maintaining a strong balance sheet and highlights the capital efficiency of our asset base.”

92 percent of Cabot’s 2016 budget will go to drilling, completion and facilities capital. The company’s Eagle Ford Shale projects will garner about 30 percent of total spending. Other highlights include:

  • Total production growth for 2015 expected to be approximately 13 percent
  • 40 new net wells in the Marcellus Shale for 2016
  • 15 net wells in the Eagle Ford Shale for 2016
  • Reduce its rig count to one rig company-wide by mid-February 2016
  • 47% reduction from its $615M preliminary budget for the year and 58% lower than its $774M capital program for 2015
  • Company lowers the top end of its production growth guidance range for the year to 2%-7% from 2%-10%

Cabot’s activity is focused on its 89,000 net acre position in the Eagle Ford Shale, principally located in Atascosa and Frio Counties, Texas.

Read more at cabotog.com

]]>
http://eaglefordshale.com/news/cabot-oil-slashes-2016-budget/feed/ 0
Oil Tax Would Crush Eagle Ford Companies http://eaglefordshale.com/news/oil-tax-would-crush-eagle-ford-companies/ http://eaglefordshale.com/news/oil-tax-would-crush-eagle-ford-companies/#respond Tue, 09 Feb 2016 19:19:38 +0000 http://eaglefordshale.com/?p=9232 10.25 Tax Per Barrel

10.25 Tax Per Barrel

President Obama continues to push additional legislation that will push more Eagle Ford operators out of business. The latest move is a controversial oil tax embedded in his $4.1 trillion budget request he sent to Congress today.

Related: Texas Challenges Methane Rules

The Obama Administration hopes to raise $319 billion over the next decade for ‘clean’ transportation and plans to fund these projects with a $10.25-per-barrel tax on crude.

This new tax is part of  Obama’s 21st Century Clean Transportation System, which is dubbed as “smart, strategic integrated investments to help reduce carbon pollution and strengthen the economy.”  

The President’s plan stresses the need for a sustainable funding solution that takes into account the integrated and varied nature of our transportation system. It will increase American investments in clean transportation infrastructure by roughly 50 percent while reforming the investments we already make to help reduce carbon pollution, cut oil consumption, and create new jobs. The new fee on oil will also encourage American innovation and leadership in clean technologies to help reshape our transportation landscape for the decades ahead.

The proposed tax is the latest in an onslaught of regulations aimed at the fossil fuel industry. The move brought immediate criticism from many analysts and industry leaders with oil mogul T. Boone Pickens tweeting its the “dumbest idea ever” and that the “$35 billion/year oil tax would bankrupt O&G industry.”

Steven Kopits of CNBC says “I can believe the White House is bad at math; I doubt they would conceive of a tax directly intended to undermine U.S. energy independence and gut a business”

After months of plummeting crude, the boom has become a bust for many and companies have struggled to survive. 18 companies that do business in the Eagle Ford filed bankruptcy and an estimated 60,000 jobs have been lost. Adding an additional tax that is roughly 30% of a barrel of crude will devastate many producers.

Key components of the plan include:

  • Reducing carbon pollution by creating incentives to reduce our reliance on oil and cut carbon pollution from our transportation sector including self-driving cars vehicles and other alternative vehicles
  • Strengthening the economy by supporting hundreds of thousands of jobs each year and increase the competitiveness of U.S. businesses and the productivity of our economy by making it faster, easier, and less expensive to move American-made products.
  • Expanding clean, reliable, and safe transportation options such as public transit and rail

Read more at whitehouse.gov

 

]]>
http://eaglefordshale.com/news/oil-tax-would-crush-eagle-ford-companies/feed/ 0
AWE Exits the Eagle Ford and Carrier Moves In http://eaglefordshale.com/news/awe-exits-the-eagle-ford-and-carrier-moves-in/ http://eaglefordshale.com/news/awe-exits-the-eagle-ford-and-carrier-moves-in/#respond Mon, 08 Feb 2016 22:24:01 +0000 http://eaglefordshale.com/?p=9211 Carrier Energy Partners II moves into the Eagle Ford by purchasing holdings from Australia-based AWE.

Related: Oilfield Waste is Still Big Business

In 2010, AWE acquired a 10 percent stake in Sugarloaf Area of Mutual Interest inKarnes County, Texas. The company has worked with Marathon oil to develop their stake that comprises 24,000 acres in the Eagle Ford shale with proved plus probable reserves of 47.8 million barrels of oil equivalent.

The deal announced last week will cost Carrier Energy Partners II $190 million in cash and is expected to be complete by the end of March 2016.

“AWE has worked with the operator, Marathon Oil, over the past few years to optimally develop the asset and realise its potential. With Sugarloaf now entering a more mature phase of production and development, the time is right to divest this asset and focus on the next major project for AWE – the Waitsia gas project in Western Australia,” Clement said.

The transaction is expected to be completed by the end of March 2016. Highlights include:

  • AWE agrees to sell its 10% working interest in the Sugarloaf project to US-based Carrier Energy Partners II, LLC for USD 190 million (AUD 271 million) before tax
  • Additional USD 9 million (AUD 13 million) payment to AWE for past drilling costs
  • Sale proceeds will be used to repay all debt, resulting in an estimated net cash position of AUD 60 million at closing (March 2016)
  • Tax on the transaction is estimated at USD 35 million (AUD 50 million), payable in the June quarter
  • The current mark to market value of AWE’s unutilised oil price hedges relating to the Sugarloaf asset is USD 5.2 million (AUD 7.5 million)

 

Read more at www.awexplore.com

]]>
http://eaglefordshale.com/news/awe-exits-the-eagle-ford-and-carrier-moves-in/feed/ 0
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

]]>
http://eaglefordshale.com/news/eagle-ford-rig-count-falls-below-70/feed/ 0
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

]]>
http://eaglefordshale.com/news/nustar-reports-record-earnings/feed/ 0
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

]]>
http://eaglefordshale.com/news/more-job-cuts-for-texas/feed/ 0
Murphy Oil to Spend $340 Millionin 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

]]>
http://eaglefordshale.com/news/murphy-oil-to-spend-340-in-eagle-ford-in-2016/feed/ 0
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

]]>
http://eaglefordshale.com/drilling-rig-count/eagle-ford-rig-count-remains-steady-4/feed/ 0
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

]]>
http://eaglefordshale.com/news/eagle-ford-production-up-slightly-2/feed/ 0