Eagle Ford Shale Play http://eaglefordshale.com News, MarketPlace, Jobs Fri, 03 Jul 2015 15:04:04 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.2 Eagle Ford Rigs Increase to 120 http://eaglefordshale.com/news/eagle-ford-rigs-increase-to-120/ http://eaglefordshale.com/news/eagle-ford-rigs-increase-to-120/#respond Fri, 03 Jul 2015 15:04:04 +0000 http://eaglefordshale.com/?p=8185 Eagle Ford Rigs Increase

Eagle Ford Rigs Increase

The Eagle Ford Shale rig count rose by three, ending the week at 120 rigs running across our coverage area by midday Thursday.

In recent Eagle Ford news, the Texas Railroad Commission issued new  policies to protect Eagle Ford pipeline inspectors from drug smugglers and illegal immigrants.

Read more: Pipeline Inspectors May Soon Carry Guns

The U.S. rig count increased slightly, ending with 862 rigs running by midday Friday.  A total of 219 rigs were targeting natural gas (nine less than the previous week) and 640 were targeting oil in the U.S. (12 more 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 remained flat at 26 this week and natural gas prices traded at $2.81/mmbtu, an decrease of  $.05 from the previous week.

The oil rig count increased by three to 94 as WTI oil prices dropped to $56.72, a decrease of $2.91. A total of 110 rigs are drilling horizontal wells, one rig are drilling directional wells, and nine are vertical rigs. Karnes leads development this week running 21 rigs, with LaSalle (20), DeWitt (16) 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 20 21 GRIMES 1 1
LA SALLE 19 20 LAVACA 1 1
DE WITT 15 16 LIVE OAK 2 1
WEBB 16 16 ROBERTSON 2 1
DIMMIT 12 12 AUSTIN 0 0
GONZALES 7 8 BEE 0 0
MCMULLEN 6 5 COLORADO 0 0
ATASCOSA 3 4 GOLIAD 0 0
MADISON 4 4 LEE 0 0
BRAZOS 1 2 LEON 0 0
BURLESON 2 2 MAVERICK 0 0
DUVAL 2 2 MILAM 0 0
ZAVALA 2 2 WASHINGTON 0 0
FAYETTE 1 1 WILSON 0 0
FRIO 1 1 BASTROP 0 0

 

Eagle Ford Shale News

Texas Housing Market Strong

Eagle Ford Counties Win Royalties

Texas Attorney General Challenges EPA

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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Texas Housing Market Strong http://eaglefordshale.com/news/texas-housing-market-strong/ http://eaglefordshale.com/news/texas-housing-market-strong/#respond Thu, 02 Jul 2015 12:35:51 +0000 http://eaglefordshale.com/?p=8176 Texas Housing Market Strong

Texas Housing Market Strong

Housing markets in Texas remain strong remain strong despite an economic slump in the nation’s energy capital, but some worry about the high prices for a few Eagle Ford residents.

Related: Low Oil Prices and the Texas Economy

The decline in oil prices over the last year has caused a slowdown in employment growth and some job cuts, but homes sales remain strong. In May 2015, there were 28,088 sales of existing single-family homes, 1.66% percent more than in May 2014.

Lawrence Yun, the chief economist for the National Association of Realtors, said that home price increases in Texas are running at about twice national rates.

While increased home prices are a great thing for property owners, for many at the bottom of the wage pool, this represents a constant struggle to make ends meet.

“We need to tone down the price growth, because prices are rising too fast,” Yun said. “House prices nationally are now reaching back to 2006 levels,” before the recession.

Residents in some Eagle Ford counties are among the most vulnerable. UTSA just announced they will be conducting a study of the impact of oil-and-gas exploration on the affordability and adequacy of housing in Dimmit, La Salle and Zavala counties. The study, funded by the U.S. Department of Housing and Urban Development, will also address how federal, county and local policies affect the availability of rental housing, affordable housing and housing options for vulnerable populations.

Texas continues to lead the nation in consumer confidence. The Texas region’s consumer confidence index was 130.5 in May 2015, up 7.5 percent from April 2015 and compared to the national index of 95.4

Read more at texaseconomy.org

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Texas Attorney General Challenges EPA http://eaglefordshale.com/news/texas-attorney-general-challenges-epa/ http://eaglefordshale.com/news/texas-attorney-general-challenges-epa/#respond Wed, 01 Jul 2015 13:17:26 +0000 http://eaglefordshale.com/?p=8173 Texas Attorney General Challenges EPA

Texas Attorney General Challenges EPA

Texas Attorney General Ken Paxton has filed a lawsuit to challenge the new federal regulations under the Clean Water Act.

Related: EPA Finds Little Risk to Drinking Water from Fracking

In a news release Monday, Paxton accuses the Obama Administration of illegally attempting to expand the jurisdiction and regulatory power of the Environmental Protection Agency (EPA) in such a way as to threatens private property ownership.

The EPA’s final rule was published Monday and is very broad. it leaves much open to interpretation including whether ditches, dry creek beds, gullies and isolated ponds formed after a big rain could be considered a “water of the United States.”

“The EPA’s new water rule is not about clean water – it’s about power,” Attorney General Paxton said. “This sweeping new rule is a blatant overstep of federal authority and could have a devastating effect on virtually any property owner, from farmers to ranchers to small businesses. Texans shouldn’t need permission from the federal government to use their own land, and the EPA’s attempt to erode private property rights must be put to a stop.”

Paxton is also sceptical of the EPA’s Clean Power Plan (“Carbon Rule”) and warned that it would have an impact on the livelihoods and quality of life of Texans and would result in higher electricity costs and less reliability for Texans, all while doing little to nothing to affect the environment. Attorney General Paxton last month announced Texas intends to challenge the Carbon Rule when it is finalized by the EPA later this summer.

Read more at texasattorneygeneral.org

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Eagle Ford Counties Win Royalties http://eaglefordshale.com/news/eagle-ford-counties-win-royalties/ http://eaglefordshale.com/news/eagle-ford-counties-win-royalties/#respond Tue, 30 Jun 2015 13:50:20 +0000 http://eaglefordshale.com/?p=8171 be safe. be smart.

Eagle Ford Roads in Disrepair

New legislation allows Eagle Ford counties to keep some of its mineral wealth, which is good news for the failing road system.

Governor Greg Abbott recently signed SB 951, overturning an old provision that stripped counties of the proceeds from the minerals that ran under their roads. Since 1960, the state has received all mineral royalties, even though they do not maintain county roads.

Over a 40 month period, the money for drilling under roads in Karnes, DeWitt and Gonzales counties generated $16 million for the state. The new law allows the counties to keep this money, which will be vital to maintaining their road systems that have been significantly impacted by the shale boom.

Eagle Ford Roads Impacted by Higher Traffic & Inadequate Funding

Eagle Ford production has been great for local economies, but has taken its toll on their roadways. Small gravel roads originally built for passenger cars now host huge rigs that travel at high speeds and often create deep, hazardous craters. Some road edges are shredded and the pavement can unexpectedly drop off half a foot.

The bill was filed by State Sen. Carlos Uresti who also worked last session to gain an additional $225 million to counties for road repair.

Senator Uresti commented, “For the first time that anyone can remember in decades, the state funded the county roads. That’s always been a county function: counties, you’re on your own. But again, given all the activity, I was able to get my colleagues to pass this bill,” Uresti said, adding that more was needed.
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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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