Worried About Oil Prices? What to Expect in the Eagle Ford

Breakeven Oil Prices Between $50 - $60 in Certain Areas of the Play
Eagle Ford Contour Map

Eagle Ford Depth Map | Click to Enlarge

There’s been a lot of talk about the price of oil lately. With WTI now below $80, we’re seeing the first shoes begin to drop among in North American oilfields, as some producers announce plans to scale back their drilling programs.

Just this week, Conoco Phillips, announced it would be cutting back drilling in West Texas’s Permian Basin, and last month, Eagle Ford-focused Clayton Williams indicated it may scale back its drilling program in the play by the first of the year.

Read more: Clayton Williams May Reduce Eagle Ford Drilling Program

However, lower commodities prices for crude oil aren’t likely to stop new drilling in the Eagle Ford. With breakeven oil prices between $50 – $60 per barrel, in certain liquids-rich areas of the play, operators will continue to drill, even if prices inch closer to this range.

Read more: What is the Breakeven Oil Price in the Eagle Ford?

Eagle Ford Slow Down

Should prices drop to $70 per barrel, experts believe the Eagle Ford will likely experience a slowdown, but not an all out bust. And some producers will fare better than others, depending on their position.

According to the consultancy Wood Mackenzie, the Eagle Ford is still expected to reach two-million b/d of crude and condensate production by 2020. Analysts predict the Karnes Trough, one of the best areas of the play, would be profitable, even if the price of oil fell into the $40s range.

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Kirk Eggleston

Kirk Eggleston

Contributor at EagleFordShale.com
Kirk Eggleston writes on significant news developments in the Eagle Ford and Bakken Shale plays. He is a former broadcast journalist, and has experience covering news and politics in the Texas and Louisiana markets.


  1. Joe Profort says:

    I believe there will be serious cutbacks and layoffs in the Eagleford. Producers will not shoulder all of the 25% price reduction. Service companies must take their bitter pill as well. If no rigs are stacked, service companies will not lower prices. Producers must pass along the pain before the service companies yield. This is the way it is in every slowdown. Sad but true and there will be layoffs and a greatly reduced rig count if prices stay down for another month.

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