Eagle Ford Production Expected to Decline

EIA Reports the Surge May Be Over
Eagle Ford Production to Dip in April

Eagle Ford Production to Dip in April

2014 was a record breaking year as shale oil production across the United States surged, but a new report suggests that trend may be shifting.

U.S. gains increased at least 100,000 barrels per day for 10 of the last 16 months. The Eagle Ford saw the same surges, as production increased from approximately 1,2 million barrels daily in 2014 and to over 1.7 million last month.

Related: Six Eagle Ford Counties Rank as Top U.S. Oil Producing Areas

Even the weekly loses of oil rigs since October hasn’t stopped production from soaring into numbers that have contributed significantly to a worldwide surplus. But this record streak may be coming to an end.

The U.S. Energy Information Administration (EIA) released a report on Monday that predicts oil production in the Eagle Ford Shale will dip in April, and possibly usher in a new trend of slower production. EIA analysts say that the Eagle Ford will produce 1.72 million barrels daily of crude oil and other liquids in April, down from an average of 1.73 million barrels daily this month.

Across the country, production from the six largest shale plays will hit 5.6 million barrels per day in April, which will be the smallest increase since February 2011.

This anticipated decline hasn’t changed the fact that reserves are still very high. EIA reports that stockpiles grew by 4.5 million barrels last week brining the U.S. reserves to 449 million barrels of oil in storage.  It has been at least 80 years since the level has been this high.

Read more at eia.org

Anadarko’s Eagle Ford Resource Estimate Swells to 600 mmboe

Gross Resource Estimates Easily Surpass 1 Billion Barrels Equivalent

Anadarko Petroleum increased the number of identified Eagle Ford well locations to 4,000 and increased its resource estimate to 600 million barrels of oil equivalent.  That means total resource from the company’s 400,000+ gross acres will stretch to more than 1 billion boe. Anadarko is partnered with KNOC across its Eagle Ford acreage.

Anadarko also reached record production in the quarter. The company averaged more than 30,200 boe/d for an entire week. Sales volumes averaged 12,000 b/d of oil, 6,000 b/d of NGLs, and 59 mmcf/d of natural gas during the quarter. [Read more…]

EOG Eagle Ford Reserves Potential Jumps 700 mmboe to 1.6 Billion Barrels

Cheapside, TX

Aerial View of Cheapside, TX - Click to Enlarge

EOG Resources’ Eagle Ford Shale assets continue to outperform. The company announced an increase in potential recoverable reserves of 700 million barrels. That brings EOG’s Eagle Ford reserve potential up to 1.6 billion barrels. The catalyst was successful testing of tighter well spacing.

U.S. proved oil reserves are just over 20 billion barrels, so a 1.6 billion barrel addition, from a single company, is significant to say the least.  [Read more…]