ConocoPhillips 3Q Eagle Ford Growth – Truck Constraints and Well Costs

ConocoPhillips announced third quarter earnings yesterday (Oct. 26) and provided several Eagle Ford updates.

The company averaged production of 31,000 boe/d with a 77% liquids cut. September production had risen to 36,000 boe/d, but included a loss of 10,000 to 12,000 boe/d related to third party trucking constraints. Without the constraints, production is approaching 50,000 boe/d. Conoco believes they will reach 100,000 boe/d by 2013. [Read more…]

Gulf Coast Refineries Supported by Eagle Ford Crude

Gulf Coast refineries are increasing margins as they absorb more domestic crude from the Eagle Ford Shale. Lighter crudes and condensates produced in the Eagle Ford directly offset imports to the Gulf Coast Region. For those counting, that means more jobs in the U.S.

Light crude can be refined into products more easily than many of the heavy crudes imported from South America. Easier means cheaper, which in turn makes Gulf Coast refineries more competitive on a global basis. If you’ve missed the past few years, owning a refinery hasn’t been the best of the business world. Production expectations from shales and a lighter crude slate look to be shifting the winds for refineries.  [Read more…]