Pipeline Explodes in DeWitt County

Energy Transfer Partners Work to Clean Up After Fire
DeWitt County Pipeline Explosion

DeWitt County Pipeline Explosion

An underground pipeline belonging to Energy Transfer Partners exploded late Sunday in DeWitt County near the town of Cuero.

The explosion sparked a massive fire and caused several area homes to be evacuated as a precaution. There were no injuries and all residents were able to return home safely.

Clean-up from the blast will involve crews replacing sections of the pipeline that were damaged. include repairs on a stretch of roadway that melted under the heat of the fire as well as

The San Antonio Business Journal reported that “Sheriff Zavesky said the fire died down around 11:30 pm Sunday, but a trench where the affected pipeline was buried could still be seen smoldering on Monday afternoon.”

Officials from Texas Railroad Commission, Energy Transfer Partners and county officials are investigating the accident.

This is the second explosion of its kind in the Eagle Ford since the beginning of the month. An accident at an Encana Corp well last month is still wreaking havoc on a small area of Karnes County.

Related: Karnes County Accident Worst in 20 Years

Marathon Oil Reduces Budget Again

41% of 2015 Spending Targets Eagle Ford
Marathon Oil

Marathon Oil in the Eagle Ford

Marathon Oil reported last week it is reducing 2015 capital spending another 20 percent from their initial December forecast.

These cuts bring the projected capex to $3.5 billion, which is less than half of 2013 spending and includes exploration spending of $232 million.

Marathon Oil will continue to focus on activity in the Eagle Ford and plans to spend 41% of its 2015 in the Texas region. Of the $1.4 billion earmarked for the Eagle Ford, approximately $1.0 billion is dedicated to drilling and completions. The company will drill 141-152 net wells and bring 176-192 total wells to sale in the new year.

CEO Lee Tillman commented on the tough decision he faces, “We’re also prepared to exercise further flexibility in our spend levels as pricing and the macro environment warrant. Our objective is clear–to deliver long-term shareholder value, regardless of the commodity price cycle, by focusing on those elements of our business which we control.”

Marathon Oil in the Eagle Ford

Marathon Oil has increased its acquisitions in the Eagle Ford over the last several years and now holds approximately 211,000 net acres in the Eagle Ford. has invested strategically to grow its presence in the formation’s highest value oil and condensate core areas. Activity is focused on Atascosa, DeWitt, Gonzales and Karnes counties.

Read more about Marathon in the Eagle Ford

Read more at marathonoil.com

Devon Energy Reports Exceptional Q4

Company Slashes 2015 Spending by 20%
Devon Energy in the Eagle Ford

Devon Energy in the Eagle Ford

In its quarterly report, Devon Energy announced it finished an “outstanding year” as it rebounded from a $20 million net loss in 2013 to end 2014 with net earnings of $1.6 billion.

Devon’s fourth-quarter total production rose 20% to 239,000 barrels per day, which represents a 48% increase from 2013.

The report credits the Eagle Ford’s prolific wells for these record numbers. Devon Energy is active in over 82,000 acres in DeWitt and Lavaca counties in Texas.

Related: Devon Banking on High Returns from Eagle Ford Investment

“Devon delivered another exceptional performance in the fourth quarter, rounding out an outstanding year for the company, including a significant repositioning of the portfolio,” said John Richels, president and CEO.”

Looking to 2015, Devon has significantly reduced its capital budget for next year by 20% to $4.96 billion. The company plans to slash its spending in all areas except the Eagle Ford, including a 21% cut in exploration and production. The company predicts oil production will increase 20% to 25% in 2015 and they plan to operate on 13 rigs for 2015, as compared with more than 20 rigs last year.

Richels further comments that, “With strong results from our enhanced completions and a focus on core development areas, we expect growth in oil production to be between 20 and 25 percent in 2015.” 

In other Devon news, Chief Executive John Richels announced in December his plans to retire at the end of July. It is expected that their Chief Operating Officer, Dave Hager, will be named as his successor. Read more here.

Get the full report at devonenergy.com

Devon Subsidiary Constructing New Eagle Ford Oil Pipeline

Ultimate Capacity of 100,000 b/d
Victoria Express Pipeline

Victoria Express Pipeline |Click to Enlarge

Victoria Express Pipeline LLC (VEX), a subsidiary of Devon Energy, is constructing a 56.4 mile long pipeline from the Blackhawk central delivery point in DeWitt County, Texas to the inlet of Devon Gas Services’s terminal at the Port of Victoria. The 12-inch pipeline is expected to come online July 1, 2014, with an ultimate capacity of 100,000 b/d.

In late 2013, Devon Energy agreed to pay GeoSouthern $6-billion for 82,000 net acres in the Eagle Ford Shale play. In the first quarter of 2014, the company said its net daily production in the Eagle Ford was 64,000 boe/d. In the second quarter, the company anticipates it will average between 65,000 and 70,000 boe/d, with more than 100,000 boe/d by next year.

Eagle Ford producers need to continuously think about how they will get their production to the refining market as activity in the play continues to grow. Wood Mackenzie recently released information stating production from the Eagle Ford Shale will reach 2-million b/d by 2020.

Read more: Devon Banking on High Returns from Eagle Ford Investment

VEX is currently conducting a binding open season to attract companies for long term commitments in exchange for access to priority capacity. The open season will end on June 19, 2014.

VEX is also constructing an additional receipt point eight miles north of Victoria in Victoria County, Texas. The company may add an additional destination point at Point Comfort in Calhoun County, Texas.