Eagle Ford Regional Rig Count 266 June 7, 2013

Kinder Morgan Crude & Condensate Expansion into Karnes County
Kinder Morgan Crude & Condensate Expansion into Karnes County

The Eagle Ford Shale drilling rig count increased by two to 266 rigs running this past week. We've only seen this many rigs active in the area twice since February.

The U.S. rig count is down six to 1,765 rigs running. A total of 354 rigs are targeting natural gas and 1,406 are targeting oil. The remainder are drilling service wells (e.g. disposal wells, injection wells, etc.).

News this week was dominated by Kinder Morgan. Three separate stories involved the pipeline and midstream giant. First, the company announced plans to start a $107 million expansion of its Eagle Ford Crude & Condensate Pipeline system. The expansion will add 30+ miles of pipe from DeWitt into Karnes County.

In addition, the Kinder Morgan operated Double Eagle Pipeline is now moving condensate and a natural gas header that connects to the companies Houston Central processing plant is complete:

*Note* Now quoting Baker Hughes. Baker Hughes also releases its own Eagle Ford Rig Count that covers the 14 core counties (~230 rigs). Our numbers cover a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table at the bottom of this article.

Eagle Ford Oil & Gas Rigs

[ic-l]The natural gas rig count in the region went unchanged and a total of 33 rigs are targeting natural gas. Natural gas dropped on the week and was trading near $3.83/mmbtu on Friday afternoon.

Three more rigs began drilling for oil and a total of 232 oil rigs are running in the region. WTI futures reversed course and were trading above $96/bbl on Friday. Eagle Ford light crude traded at $91.25/bbl on June 6th.

Karnes and La Salle counties lead development with 36 and 32 rigs running, respectively. See the full list of drilling by county below.

South Texas Oil & Gas News:

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Eagle Ford Shale Drilling by County

What is the Rig Count?

The Eagle Ford Shale Rig Count is an index of the total number of oil & gas drilling rigs running across a 30 county area in South Texas. The South Texas rigs referred to in this article are for ALL drilling reported by Baker Hughes and not solely wells targeting the Eagle Ford formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count and/or Smith Service Co's (Schlumberger) Smith Rig Count.