Oil and gas production in the Eagle Ford is expected to drop for the eighth straight month in November.
The U.S. Energy Information Administration released its latest numbers that project a drop in production in November by 71,000 barrels daily for the Eagle Ford.
The industry has been hit hard by falling crude oil prices, with energy companies drilling and completing fewer wells. Oil prices were higher than $100 per barrel last summer but was trading around $47 Friday.
Production is also slipping in the Bakken and Niobrara fields, according to EIA.
In addition to falling production, other indicators are showing the strain of low oil prices in Texas:
- Texas has seen a halt in job growth with almost 28,300 jobs cut in the industry over the past six months.
- Over the last few weeks, the Eagle Ford Shale rig count fell below 100 and ended last week at 94.
- Environmentalists are calling for a halt to drilling on university lands, which would be “disastrous for the University system and the Texas economy.”
- Many Eagle Ford producers are selling assets and making deals in order to survive
- Sanchez is selling approximately 150 miles of midstream infrastructure
- Alta Mesa Holdings will exit from the Eagle Ford by selling Alta Mesa Eagle, LLC to EnerVest for $125 million.