Baker Hughes Closes Another Texas Location

Layoffs Continue as Energy Giant Prepares for Merger
Baker Hughes Cuts Jobs

Baker Hughes Cuts Jobs

Baker Hughes pink slips are starting to add up. The latest casualties are the 54 employees who will be out of work when Baker Hughes permanently closes its office in Bryan, TX.

Since the first of the year, Baker Hughes has closed other Texas locations including operations in Mineral Wells (110 employees), Kilgore (58) and Alice (51).

Related: Energy Giants Announce Layoffs 

Baker Hughes representatives continue to say that job cuts are part of a company wide workforce reduction of an estimated 7000 workers in order to minimize costs during this downturn in oil prices. Also at play is Baker Hughes’ upcoming merger with Halliburton, where it is likely that both companies will combine operations and eliminate redundancies.

Related: Halliburton to Merge With Baker Hughes

The Houston Chronicle reported in December that the combined company expects to make $2 billion in cuts, with most of the job loses coming from operations.

Baker Hughes CEO Martin Craighead told the Houston Chronicle that, “We don’t want to be insensitive to the uncertainty and acknowledge that the fact that anytime you have institutions of this size coming together there will be some adjustments, but I think it would be premature to speculate” 


Baker Hughes Reports Record Eagle Ford Well Spuds in Q4

Eagle Ford Rigs Are Drilling 1.5 More Wells Per Quarter Than Early 2012
Eagle Ford Well Spuds Q4 2013

Eagle Ford Well Spuds Q4 2013 | Click to Enlarge

Baker Hughes reported a record number of Eagle Ford well starts in the fourth quarter of 2014. The company’s quarterly report shows ~1,171 wells were started over the three month period.

Rigs also drilled 0.5 wells more in the quarter than they did in the third quarter of 2013. That’s an improvement of 40% or 1.5 more wells per quarter per rig than the industry was capable of in early 2012.

We consider the Baker Hughes well start estimate conservative since the company only considers a 14 county area in its Eagle Ford statistics. The numbers reported ignore areas like Brazos County where Eagle Ford activity is increasing. [Read more…]

Eagle Ford Record Set for Well Spuds in Q3

Over 1,100 Wells Started for the First Time in a Three Month Period
Eagle Ford Well Spuds Q3 2013

Well Spuds Q3 2013 | Click to Enlarge

Baker Hughes released its third quarter estimates for well spuds and the Eagle Ford eclipsed 1,100 wells in a single quarter for the first time. The play accounted for 1,133 or more than 10% of the 9,175 wells spud in the U.S. during the quarter.

Baker Hughes tracks the 14 core counties when evaluating the play, so actual numbers are higher. The oilfield service company tallied 233 rigs the 14 county area during the quarter compared to ~270 in the 30 county area we observed. [Read more…]

Did You Know Drilling Starts On Over 1,000 Eagle Ford Wells Per Quarter?

Rigs Are Drilling Almost One More Well Per Quarter Than They Were A Year Ago
Eagle Ford Well Count Q2 2013

Eagle Ford & Major Basin Well Count in Q2 2013 | Click to Enlarge

Did you know that drilling rigs spud more than 1,000 Eagle Ford wells per quarter in South Texas? To top it off, that is a conservative estimate.

Baker Hughes is known for publishing weekly rig count estimates and the company is now publishing well count estimates in many of the major plays across the U.S.

The third quarter of 2012 was the first quarter that well starts in the Eagle Ford eclipsed 1,000. The number of wells spud fell below 1,000 in the fourth quarter and rose back above that level in both the first and second quarter of 2013. [Read more…]

Eagle Ford Well Completed With LNG Powered Frack Pumps

Marks the First LNG Powered Frack Job Ever Completed

Onshore LNG Regas and Tanker

LNG Tanker and Regas Equipment | Click to Enlarge

LNG powered frack pumps were used to complete an Eagle Ford well in late 2012. We sat down with Ferus’ LNG rep Jed Tallman to learn more.

This was the first time LNG has ever been used to fuel pumps fracking a well. Field gas has been used by Schlumberger in the Horn River Basin of Canada, but LNG has never been used before.

Ferus is an oilfield service company that supplies cryogenic liquids as part of its offering. The company worked with Baker Hughes to test natural gas conversion technology and yard tested 10 Cummins QSK50 powered pumps. After a successful test, the companies took the pumps into the field to complete an Eagle Ford well south of Pearsall. [Read more…]

Shale Production Booms and Foreign Oil Imports Decline

Shale plays, like the Eagle Ford, are contributing to U.S. production growth that has pushed imports of foreign oil below 50%. That’s down from more than 60% just 5 years ago. While hydraulic fracturing is highly debated, its use combined with horizontal drilling has shifted the U.S. from a position of a majority consumer to a producer who supplies most of its oil needs. We’re a long way from producing enough oil for the country, but at least we have a bargaining chip at the table.

We can produce more oil and have untapped reserves in the ground. If you have a couple of minutes, this is a pretty good article from the LA Times.  [Read more…]