WoodMac: Eagle Ford to Hit Two-Million b/d Mark by 2020

Potential for Eagle Ford Production Constraints by end of Decade
Eagle Ford Shale Well Map

Eagle Ford Shale Well Map – May 2013 | Click to Enlarge

According to the oil and gas research and consulting firm Wood Mackenzie, the Eagle Ford will reach two-million b/d of crude and condensate production by 2020. Compared to the next most significant liquids-rich shale play in the U.S., the Bakken Shale, in North Dakota, the Eagle Ford is expected to produce 16% more crude and condensate production during the same year combined.

The Eagle Ford Shale is really on a roll. In June of 2014, analysts at the Bentek Energy Benposium Conference, in Houston, TX, said the Eagle Ford had the highest internal rate of return (IRR) among all other U.S. Shale plays. According to Bentek Energy Senior Analyst Catherine Bernardo, the Eagle Ford is sitting at just over 70% IRR.

Read moreEagle Ford Rate of Return Higher than Other U.S. Shale Plays

Potential for Eagle Ford Production Constraints

Currently, there aren’t  any production constraints in the Eagle Ford. That’s due to a number of factors, but namely an already existing midstream infrastructure in Texas, the completion of multiple midstream projects since the boom began and the Gulf Coast refining markets ramping up to accommodate Eagle Ford production.

At Benposium, analysts predicted the Eagle Ford market would not see a lot of production constraints near the end of the decade; however that could change if Eagle Ford production reaches a certain threshold.

Bentek Energy Sr. Analyst Erika Coombs, said in a presentation, “if the Eagle Ford reaches two-million b/d by 2019, there would be production constraints in the play.”

Should Eagle Ford production reach two-million b/d of crude and condensate production by 2020, that means industry players essentially have a one-year pad to accommodate for the anticipated increase.

ConocoPhillips Eagle Ford Production Up 58% to 141,000 boe/d in Q4 2013

Conoco will spend ~$9 billion on its North American operations in 2014. $4.3 billion will be focused on U.S. shale plays

ConocoPhillips Eagle Ford Map

ConocoPhillips Eagle Ford Map | Click to Enlarge

ConocoPhillips’ Eagle Ford Shale production was 141,000 boe/d in the fourth-quarter of 2013, surpassing fourth quarter 2012 production from the formation by 58%.

The Lower 48 and Latin America accounted for ~28% of the company’s total production.

Read more: Conoco Increasing Eagle Ford Spending in 2014

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ConocoPhillips Is Increasing Eagle Ford Spending in 2014

Two-thirds of Development Capital Will Be Allocated in the Lower 48
ConocoPhillips Eagle Ford Map

ConocoPhillips Eagle Ford Map | Click to Enlarge

ConocoPhillips will spend $16.7 billion in 2014 (6% more than 2013) and 55% of the total ($9.18 billion) is allocated in North America.

Within North America, Conoco expects continued growth from the Eagle Ford, Bakken, and Permian plays. [Read more…]

Halcon Allocating More Capital To Its Brazos County Eagle Ford Development

Recent Eagle Ford Wells Producing More Than 1,000 boe/d (90+% oil)
Halcon Eagle Ford Activity Map

Halcon Eagle Ford Activity Map | Click to Enlarge

Halcon announced plans to spend $100 million targeting the Eagle Ford in Brazos County in 2013 just two months ago. Now, the company might spend double or triple that number.

The company didn’t say how much more capital would be allocated to the play, but said “capital is being reallocated to El Halcon from the Woodbine…” [Read more…]

Halcon’s New Eagle Ford Core Play And More – Floyd Wilson Video

Halcon Plans Assets Sales To Support Bakken, Eagle Ford, and Utica Development

Floyd Wilson recently sat down with Jim Cramer to discuss Halcon’s development strategy across its shale plays. The company keeps to a strategy of developing infrastructure before developing assets. [Read more…]

Lonestar Resources – Amadeus Deal Creates Public Company

Australian Amadeus Energy's Acquisition of Lonestar Resources will create a newly formed public entity
Lonestar Resources Operations Map

Lonestar Resources Operations Map | Click to Enlarge

Lonestar Resources is an independent operator with assets in Barnett, Bakken, and Eagle Ford shale plays. The company has over 5,000 acres prospective for the Eagle Ford spread across Dimmit, La Salle, and Wilson counties.

The company made offers for Eureka Energy earlier in the year, but bowed out as Aurora Oil & Gas increased its bid. The company is now being acquired by an Australian company, Amadeus Energy.

Amadeus is a public company that was created by Ecofin Water & Power Opportunities for the sole purpose of seeking oil & gas investment opportunities. [Read more…]