As of March 15, 2012, the Texas Railroad Commission reported almost 3,700 permits had been submitted, with 954 oil wells and 578 gas wells on schedule. That’s up from ~1,900 permits, with 194 oil wells and 249 gas wells on schedule in June of 2011. That means the industry brought on almost 1,100 wells in 9 months. Add in the many gathering delays in 2011 and that number could have been even higher. In 2012, don’t be surprised if as many as 2,500 wells are brought to production.
Also, note the difference in the proportion of oil vs. gas wells. In June of 2011, 56% of producing wells were considered “gas” wells, but in March of 2012 that number had fallen to just 38%. That’s a direct reflection of the commodity markets. Natural gas is at multi-decade lows, while oil has held strong above $100 per barrel.
Do you think 2,500 Eagle Ford wells will be drilled this year? Use the comments below to share your thoughts.