Pioneer Addresses Eagle Ford Exports in Q2 2014 Report

Record Eagle Ford Production Recorded in Q2
Pioneer Central Gathering Plant

Pioneer Central Gathering Plant | Click to Enlarge

Recently, the U.S. Commerce Department (U.S. DoC) granted Pioneer Natural Resources Co. and Enterprise Product Partners LP permission to export minimally processed Eagle Ford condensate. According to Pioneer officials, the U.S. DoC confirmed that condensate processed at Pioneer’s Eagle Ford Shale central gathering plants in South Texas is a petroleum product that can be exported without a license.

The news in June 2014 that Pioneer was granted permission to export condensate made headlines and sparked a debate about the oil export ban, which has been in place for nearly forty years. Earlier this week, Eagle Ford Operator BHP Billiton confirmed it had applied for an export permit with the U.S. DoC.

Read more: Eagle Ford’s BHP Billiton Seeks to Export Condensate

It shouldn’t come as a huge surprise, but Pioneer is looking to Asian markets to sell its processed Eagle Ford condensate. According to the Energy Information Administration (EIA), Asia surpassed North America as the largest petroleum-consuming region in 2008, with demand increasing 146% (15 million b/d) from 1980 to 2010.

Pioneer CEO Scott Sheffield, said, “we are pleased that the U.S. Department of Commerce has recently confirmed that Pioneer may begin exporting processed condensate from the Eagle Ford Shale. Our first cargo was shipped in late July and monthly shipments are expected through the end of this year at prices higher than domestic condensate sales. International interest for our processed Eagle Ford Shale condensate is growing, particularly from Asian petrochemical companies.”

Pioneer Eagle Ford Q2 2014 Production and Operations Update

During the second quarter, Pioneer had record average Eagle Ford production of 47,000 boe/d. Thirty-one wells were placed on production during the quarter.

For 2014, the company expects to place approximately 125 liquids-rich wells on production in the Eagle Ford Shale (63 wells in the first half of 2014 and 62 wells in the second half). Company officials say most of these wells will be drilled utilizing three-well and four-well pads. The 2014 program reflects longer lateral lengths and larger fracture stimulations compared to 2013. Full-year production is forecasted to range from 46,000 boe/d to 49,000 boe/d, an increase of 22% to 30%, compared to 2013.