Eagle Ford Rig Count Dips

January 14, 2017 Elizabeth Alford

The Eagle Ford Shale rig count reversed its recent trend this week, falling to 56 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, The University of Chicago released a study showing the economic benefits of fracking on local economies still outweigh the more undesirable side effects, according to a new study.

A total of 658 oil and gas rigs were running across the United States this week, a loss of six over last week. 136 rigs targeted natural gas (one more than the previous week) and 522 were targeting oil in the U.S. (seven less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 325 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties. The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table below.

Eagle Ford Oil & Gas Rigs

Eight rigs in the Eagle Ford region targeted natural gas this week with the commodity trading at $3.46/mmbtu.

48 Eagle Ford rigs were targeting oil with WTI oil prices dipping slightly to $52.55.

A total of 52 rigs are drilling horizontal wells, one are drilling directional wells and three are vertical.

Karnes County leads this week with 13 rigs in production. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

Eagle Ford Shale News

Many Oil and Gas Workers Still Unemployed

Fracking Boosts Local Economies

SM Energy Sells Eagle Ford Assets

RRC’s Sitton Blasts EPA for Unnecessary Regulations

RRC Assesses $8,651,857 in Fines for 2106

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.

Many Oil and Gas Workers Still Unemployed

January 11, 2017 Elizabeth Alford

Researchers at the University of Houston report that 90% of the oil and gas workers who lost their jobs are still unemployed or have left the industry.

Since the oil boom turned to bust over two years ago, 100,000 oil and gas industry workers in Texas have lost jobs. In an ongoing study by the University of Houston, researchers polled 720 laid-off workers and found the following:

25% have found work outside of the oil and gas industry
More than 60% of them remain out of work
13% of them have found new jobs within the industry
More 70 % said they’re nervous about the industry’s future
55 % said they’re considering giving up on the sector entirely
2/3 of them complained about the way their companies’ layoffs were handled

“A good number of people are lost to other industries. Oil and gas impacts just about everything here in all parts of our economy.”

— Christiane Spitzmuller, principal investigator with the Center for Applied Psychological Research at the University of Houston

On Tuesday, the Federal Reserve Bank of Dallas forecasts a 2 percent job growth in Texas for 2017 as the state pulls out of the slump. This translates into 242,000 more jobs for Texans.

Fracking Boosts Local Economies

January 10, 2017 Elizabeth Alford

**Fracking Benefits Outweigh the Negative**

The economic benefits of fracking on local economies still outweigh the more undesirable side effects, according to a new study.

Between 2000 and 2013, the University of Chicago’s Energy Policy Institute conducted a study of the communities near the nation’s most prominent shale formations, including the Eagle Ford Shale in Texas. The study concludes that the economic benefits to citizens during the boom years, overshadowed the negative affects of crime, traffic and pollution.

“This study makes it clear that on net there are benefits to local economies – which we believe is useful information for leaders in the United States and abroad who are deciding whether to allow fracking in their communities.”

— Co-author Chris Knittel, Professor at the MIT

Economic Benefits of Fracking to Local Communities

The study found that the shale boom produced benefits valued at as much as $1,900 a year for the average household in nearby communities.
Income climbed 7 percent
10% employment rate
Home prices increased by 6% (20% in ND)
Net benefits of around $300 a year for the typical household

Unpleasant Side Effects of Shale Boom

Higher crime rates
More traffic
More pollution
General anxiety over the environmental dangers
20% increase in spending for police and public safety.

Eagle Ford Shale Rig Count Continues to Climb

January 7, 2017 Elizabeth Alford

**Eagle Ford Operators Put Rigs Back Online**

The Eagle Ford Shale rig count continues to climb this week, with our data showing 58 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, Texas Railroad Commissioner Ryan Sitton issued a statement criticizing the recent court decision concerning oil and gas waste disposal.

A total of 664 oil and gas rigs were running across the United States this week, a gain of seven over last week. 135 rigs targeted natural gas (three more than the previous week) and 529 were targeting oil in the U.S. (four more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 327 of the rigs active in the U.S. were running in Texas.

Eagle Ford Oil & Gas Rigs

Nine rigs in the Eagle Ford region targeted natural gas this week with the commodity trading at $3.29/mmbtu.

49 Eagle Ford rigs were targeting oil with WTI oil prices gaining slightly to $53.99.

A total of 51 rigs are drilling horizontal wells, zero are drilling directional wells and seven are vertical.

Karnes County leads this week with 13 rigs in production. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

Eagle Ford Shale News

SM Energy Sells Eagle Ford Assets

Lucas Energy is Now Camber Energy, Inc

RRC’s Sitton Blasts EPA for Unnecessary Regulations

RRC Assesses $8,651,857 in Fines for 2106

What is the Rig Count?

Lucas Energy is Now Camber Energy, Inc

January 5, 2017 Elizabeth Alford

Effective today, Lucas Energy is now Camber Energy, Inc

Lucas Energy, Inc. has made a strategic move from its Eagle Ford roots and is marking the shift with a name change to Camber Energy.

The company says it plans to expand with the addition of shallow oil and gas reserves with longer-lived, lower-risk production profiles.

Camber has also expanded their management team, adding Thomas E. Hardisty as Senior Vice President of Land & Business Development and J. Mark Bunch as Senior Vice President of Engineering & Operations.

Recent company news:

AUGUST: company announced that its wholly-owned subsidiary, CATI Operating, LLC will borrow $1 million to fund drilling, completion and maintenance projects in the Eagle Ford Shale. The company will enter into a joint operating agreement with Lonestar Resources that will cover over 1,450 gross acres. Lucas will have a 8% -14% working interest in the units.
OCTOBER: company executives announced the completion of two wells in Karnes County in addition to re-activating their Griffin 1H Austin Chalk well. The first tests on the Griffin 1H is showing production of 55 boe/d after having produced 5 Boe/d prior to shut-in.
JANUARY: Camber holds more than 10,000 net acres in Gonzales, Karnes and Wilson counties and announces it will purchase approximately twenty thousand (20,000) net mineral acres in the Permian Basin.