NuStar, EOG Agree to Rail Offloading in St. James, LA

St James, Louisiana will be home to a rail facility that EOG Resources and NuStar will use to offload crude from the Eagle Ford Shale and other oil plays. By using rail, EOG will be able to market its crude outside of South Texas Gulf Coast area and will likely get better prices as Eagle Ford production grows. EOG was proactive in getting agreements to ship crude in the Bakken Shale and it looks as if they're on the same track in the Eagle Ford. 

The project will facilitate movement and storage of crude oil production from the Bakken, Eagle Ford and other developing shale plays in the United States.

The new project will include the addition of new rail and unit train unloading facilities. Two new storage tanks with a combined 360,000 barrels of capacity will also be built in conjunction with the project. The new facility will be equipped to receive at least one 70,000-barrel train per day and will have enough track and other infrastructure to stage an additional train to await offloading. The rail project is expected to be completed in the first quarter of 2012, and the tanks are expected to be completed and in service in May 2012.


Eagle Ford Production Doubles in Two Months - Bentek

Bentek is quoted in a recent Reuters article about oil & gas pipelines in the Gulf Coast that Eagle Ford Shale production doubled over a two month period from May to July. That seems crazy, but if it is true, it is a glimpse of what's to come in the Eagle Ford. I will not be surprised when the Eagle Ford Shale rivals the Bakken Shale in terms of production in the next couple of years. The Bakken, in North Dakota, is several years ahead of our South Texas play and produces over 300,000 barrels or oil per day.

Eagle Ford production doubled in two months and now stands at 160,000 bpd, according to energy consultancy Bentek.


Read the full press release at

Enterprise Products Pipeline Gets Green Light in Austin County TX

Enterprise Product's Eagle Ford Shale pipeline has gotten the green light from the town of Sealy, TX and Austin County, TX. We're closer to having the needed infrastructure for moving larges volumes of Eagle Ford crude. The pipeline has a planned capacity of 350,000 barrels of oil per day. Hopefully, the pipeline companies stay in front of oil production and we don't see the oil price discounts experienced in North Dakota's Bakken Shale.

"Enterprise Crude Pipeline LLC is making its own play to tap the resource, near Sealy, and Austin County commissioners’ have agreed to proceed with installation of a new pipeline. But, with conditions."“ 'It needs to be contingent on whether we can get everything we need to get it done,” said Precinct 4 Commissioner Douglas King."

"Commissioners agreed, and gave a green light to the project, but only if all supplies are available."

"Enterprise Crude Pipeline LLC is the petitioner, and will be given permission to begin construction as soon as equipment details can be resolved."

"The project is to tap the resources of one of the deepest and oldest shale plays in the nation, the Eagle Ford Shale, of which Austin County is a part."

Read the full news release at

EOG Announces Eagle Ford Shale Discovery and Acreage

EOG becomes one of the largest acreage holders in the Eagle Ford Shale with the announcement of its acreage position.

HOUSTON - EOG Resources, Inc. (EOG) today announced crude oil discoveries in South Texas, North Dakota and Colorado. Potential reserves were increased on its Bakken/Three Forks and Fort Worth Barnett Shale Combo crude oil and liquids-rich acreage. In addition, natural gas reserve estimates were also raised for its Haynesville/Bossier and British Columbia Horn River Basin acreage.


"These results reflect EOG's concerted effort over the last four years to capture early mover positions in new crude oil and liquids-rich plays amenable to horizontal drilling," said Mark G. Papa, Chairman and Chief Executive Officer.

Crude Oil Discoveries

In South Texas, EOG has accumulated acreage across six counties in the Eagle Ford Play where it has drilled 16 delineation wells over a 120 mile trend. Based on initial drilling and production results, as well as technical and core analysis, the estimated reserve potential on EOG's 505,000 net acre position in the oil window is approximately 900 million barrels of crude oil equivalent (MMboe), net after royalty (NAR). Development of this high rate-of-return crude oil play is underway with the first significant production impact projected for 2011.