Eagle Ford Counties Dominate List of Top Oil Producing Counties in Texas

Top Oil & Gas Producing Counties in Texas
Top Oil & Gas Producing Counties in Texas

The Eagle Ford dominates the latest list of the top oil & gas producing counties in Texas. The Eagle Ford contributes the majority of production in the top three oil producing counties and five of the top 10 producers in the state.

Texas oil production has grown approximately 20% since this time last year. I don't think anyone can deny we're in the midst of an oil boom

Preliminary data for July from the Texas Railroad Commission shows the top counties produced the following:

  • Karnes County  ~146,000 b/d
  • La Salle County ~104,000 b/d
  • Gonzales County ~83,000 b/d
  • Dimmit County ~67,000 b/d
  • McMullen County ~60,000 b/d

Dimmit County is the only county in the area to make the top ten gas producing areas as well. Also, it's important to remember the numbers are preliminary. Production figures are often revised upwards by as much as 10% in later months.

Read the full monthly press release at rrc.state.tx.us

Eagle Ford Oil Output Surpasses 600,000 b/d In May

Eagle Ford Shale Well Map
Eagle Ford Shale Well Map

Eagle Ford oil production crossed 600,000 b/d for the first time in May 2013. Initial reports to the Texas Railroad Commission total more than 580,000 b/d. With revisions and late reporting almost every month has been revised upward by 30,000-50,000 b/d.

The U.S. produced 7.3 million b/d of crude oil in April, so the Eagle Ford accounts for more than 8% of all oil produced across the country. The Eagle Ford is quickly gaining on other shale plays and will likely match and surpass Bakken production sometime in the next two years.

Gas production from the Eagle Ford has held relatively flat. The Eagle Ford has averaged a little more than 2.1 Bcf/d of natural gas production so far this year.

As of July 3, 2013, a little less than 4,000 oil wells and almost 1,700 gas wells were producing from the Eagle Ford. More than 10,000 permits have been issued in the play since 2008.

Remember, liquids reported by the TX RRC are measured at the wellhead. Additional condensate and natural gas liquids will be gathered further downstream in separators and processing plants. Industry analysts estimate the Eagle Ford is producing closer to 900,000 b/d of crude oil, condensate, and NGLs.

TX RRC Data - Eagle Ford Production Surging Ahead

Oil Drum
Oil Drum

Texas Railroad Commission data from July shows the Eagle Ford produced approximately 310,000 b/d of crude oil. Unless the industry has gotten more timely at reporting figures, that number is likely conservative. If recent trends prove true, July's figures could be revised upwards by as much as 10%, which puts crude oil production near 350,000 b/d today. Railroad Commission data also shows the play produced over 50,000 b/d of condensate and 1.21 Bcf/d of natural gas. As pipeline and gathering systems expand, natural gas production will show itself to have considerable upside from where it stands now. Many wells are brought to production before natural gas pipelines are tied in, but that number is decreasing as midstream companies catch up to the operators.

Texas Oil Production Poised to Set New Highs

Texas oil production has risen to levels not seen since the early 90s and late 80s. The state has the potential to break 2 mmbbls/d of production by year-end. It has been more than 20 years since the state produced this much crude.  Both the West Texas Permian Basin and the Eagle Ford are driving production growth and don't expect it to stop any time soon. I've seen predictions for Eagle Ford crude and condensate production to grow by as much as 400,000-500,000 b/d by year-end 2013

Eagle Ford Production Surpasses 2 Bcf/d and 500k b/d

The EIA's latest numbers show the Eagle Ford is blazing through expectations.  The play is on pace to have more development drilling and higher production than many expected just a few short months ago. Highlights from the report include:

  • 856 wells started in the first quarter of 2012 (100%+ increase over 2011)
  • On pace for more than 3,000 wells started in 2012. With added rigs and drilling efficiency gains, 3,500+ is likely
  • 500,000 bbl/d of crude and condensate produced in April
  • Eagle Ford natural gas production has eclipsed 2 Bcfd (U.S. produced 83 Bcfd in Jan. 2012)

Read the entire update at eia.gov

Overall, drilling starts are up from less than 50 per month at the beginning of 2010 to more than 350 in March of 2012. Wow!

Koch Staff and Eagle Ford Production To Double in 2011

Koch Industries' South Texas staff will grow from 64 to 125 in the near future and Eagle Ford Shale production is all but guaranteed to double in 2011. First half 2011, oil and gas production matched 2010 rates with 101 Bcf and 3.5 million barrels produced. Don't expected that growth to let up this year. With almost 200 rigs active, you can bet production will easily exceed double that of 2010.

Estimates from the Texas Railroad Commission, which oversees drilling activity, show that the more than 3.5 million barrels of oil slurped from the ground between January and June this year is the same amount produced in all of 2010.

Natural gas follows the same trend: 101 billion cubic feet produced in the first half of 2011 almost overtakes the 107 billion reported in all of 2010.

In 2010, there were $2.9 billion in total revenues logged as of early this year, about $512 million paid in salaries and benefits to workers with about $60.9 million flowing into state coffers and $47.6 million into local governments across the 24-county Eagle Ford region, according to the UT-San Antonio report.

Pre-Eagle Ford, Koch Pipeline had a staff of 64 people across South Texas. Those numbers in the near future will double to about 125, company vice president Larry Van Horn said.