Get a CDL in 10 Easy Steps – Start a Career in the Eagle Ford Oilfield
A Commercial Driver’s License (CDL) opens the door to a great career in the Eagle Ford Shale Play. You must have a CDL to drive many of the vehicles used in the oilfield industry such as:
- a combination of vehicles weighing 26,001 pounds or more,
- a single vehicle with a gross vehicle weight of 26, 001 pounds or more,
- a single vehicle designed to transport more than 15 persons (including the driver) or
- any size vehicle which requires hazardous material placards. (more…)
Eagle Ford NGL Production Adding to U.S. Supply Growth
Eagle Ford Shale NGLs, along with other liquids producing plays, are helping make the U.S. competitive in the worldwide petrochemical market. “That’s a drastic change from just 10 years ago when companies thought there would never be another petrochemical facility built in America”, says Wood Mackenzie’s Senior NGL Analyst Larry Schwartz.
Eagle Ford NGL Production Growing to 300,000+ b/d
We recently sat down with Schwartz to get additional insight into the growing natural gas liquids (NGL) market in South Texas. In short, he expects the Eagle Ford will go from producing ZERO barrels of NGLs a few years ago to more than 300,000 barrels per day (b/d) by 2020. For reference, the EIA tracks processed volumes of NGL production (at the plant level) and as of the 4th quarter of 2011 the entire market is a little more than 2.2 million b/d. If total production held flat, the Eagle Ford would easily account for more than 10% of the total U.S. NGL market in 2020. (more…)
Posted in Eagle Ford Shale Blog, News
Tagged Chevron, ChevronPhillips, ConocoPhillips, Dow Chemical, Enterprise Products, Formosa FTC, NGLs, Petrochemical Plants, Production, Supply, Targa
Industrial Space in Short Supply – Houston – San Antonio
Industrial properties are well occupied in Houston. Energy Service (Oil & Gas) companies have quickly filled available space in order to meet demands from growing oil & gas plays like the Eagle Ford Shale.
Companies Are Expanding and Relocating to Houston
Many of my clients have chosen to remain (and even expand) in Houston as a primary hub, and then open up satellites in South Texas to take advantage of the Eagle Ford Shale Play in South Texas. Given Houston is deemed as one of the energy capitals of the world, has a low cost of living and enjoys a quality labor pool, companies are oftentimes relocating to Houston. Therefore, industrial space is being absorbed at a nice clip. New development has started on 3 speculative projects for distribution space. This hasn’t happened since 2007. Also, over 2 MM SF of manufacturing space (buildings with cranes) is under development for both users and future occupiers. Overall, we know of very little speculative projects underway in any other area of the country. Notable companies expanding in Houston are National Oilwell Varco, Weatherford, and KBR. (more…)
Posted in Eagle Ford Shale Blog, News
Tagged Houston TX, Industrial Property, Manufacturing, Real Estate, San Antonio TX
Oil India Eagle Ford Position Coming Soon?
Oil India is out wining and dining Eagle Ford operators. The company announced it is looking for a minority stake of 20-30% in U.S. shale acreage and is looking at the Eagle Ford. Gail and Carrizo Inked an Eagle Ford JV in September of 2011 and Reliance and Pioneer inked a shale deal in 2010, so it’s no surprise to see Oil India might want to follow suit.
Oil India has spoken with ConocoPhillips and word hit the news wire early Monday. While it is not out of the realm of possibility, a joint-venture between the two companies would likely include much more than the $200-300 million investment Oil India is looking to make. Oil India might have assets it is willing to trade, but if not the company is much more likely to find a suitable partner in a company with a smaller acreage position. Using the $25,000 per acre price paid in the Hunt Oil -Marubeni Partnership announced two weeks ago, Oil India is in the market to buy 10,000-15,000 acres of prime Eagle Ford acreage. That’s much less than 20-30% of Conoco’s 220,000+ acres in the play. If the two companies reach an agreement, it will include additional consideration or it will be limited to a much smaller area than Conoco’s current footprint in South Texas. (more…)
Corrosion Control in the Eagle Ford Shale
Corrosion control is always a factor in oilfield work. Above-ground tanks, pipelines, and all manners of equipment suffer from corrosion, both internal and external in nature. The farther south and west one moves across the Eagle Ford play, the more two interesting physical facts come to dominate external corrosion control needs.
Maverick, Dimmit, Zavala, Webb, La Salle, McMullen, Frio, Atascosa, Live Oak and Bee Counties have shallow soils which often contain large concentrations of chloride ion. This comes from salt deposited when ancient ocean shorelines ranged across the region. High chloride ion content causes aggressive corrosion rates on unprotected steel. Just as importantly, the sodium and chloride ions, often found with other ions as well, cause the soil’s electrical resistivity to be very low. The low electrical resistance means high corrosion current flows, which again accelerates attack on unprotected steel. Pipelines are buried in this soil. Tanks are set on it. (more…)
Posted in Eagle Ford Shale Blog, News
Tagged Corrosion, Equipment, Tanks
Reliance – Apollo Evaluate El Paso Assets
Since Kinder Morgan’s $21+ billion acquisition of El Paso was announced, it was believed Kinder would sell the accompanying exploration and production assets. We explored the possibility in more detail in the blog post “El Paso’s Eagle Ford Assets on the Market”
The real question is whether the e&p assets will be sold all together or if they will be sold in parts. I’m sure Mr. Kinder knows how much other deals have gone for and he’ll want to get a similar premium for El Paso’s Eagle Ford assets. If he doesn’t get the premium or dang close baked into a deal for the entire business unit, he’ll sell the assets off one by one. Expect a decision on selling the whole or parts real soon. Publicized estimates of El Paso’s e&p value are around $8 billion.
Both Reliance Industries and Apollo Global Management are in talks to buy the unit. Reliance would be buying an operated stake in the U.S. where to date it only acts as a non-operated partner in the Marcellus Shale. Apollo would be adding a significant e&p business that it would likely grow and market to other companies or eventually IPO. Private equity firms like Apollo usually hold assets for 3-10 years. (more…)
Posted in Eagle Ford Shale Blog, News
Tagged Acreage, Apollo, Deals, El Paso, KinderMorgan, Reliance
El Paso’s Eagle Ford Assets on the Market
El Paso Corporation and Kinder Morgan announced a $38 billion transaction where the later will acquire all of El Paso’s assets. The deal will create a pipeline and midstream company that is the 4th largest energy company in North America (Enterprise Value of >$90 Billion).
El Paso had plans to spin off its exploration and production business at the end of the year, but those plans are delayed until Kinder Morgan has full control of the assets. The company still plans to divest the E&P assets, but is more likely to sell individual assets instead of spinning off a new entity. That means there are Eagle Ford wells and acreage on the market. (more…)
Posted in Eagle Ford Shale Blog, News
Tagged Acreage, Common Resources, Deals, El Paso, Enduring Resources, kinder morgan, Pipelines, SM Energy, Statoil, Talisman Energy
Not Enough Pipelines, Railcars, or Trucks for U.S. Crude
West Texas Intermediate (WTI) crude is trading at a more than $25 discount to Brent Crude. Brent prices are used as the benchmark for two-thirds of the international crude trade. WTI is used as the U.S. benchmark. More than $25 per barrel is an amazing spread when you consider WTI is priced in Cushing Oklahoma and the U.S. accounts for almost 25% of worldwide oil demand. How can oil be cheapest where demand is the highest? When you have a moment, look at Bakken and Eagle Ford drilling levels.
Shale Plays Adding Production Outside of the Gulf Coast
Shale plays like the Bakken and growing plays in West Texas along with an influx of Canadian oilsands production in the midwest have pushed a surplus of oil all the way to Oklahoma. In a perfect market, we could move oil quickly and easily to take advantage of the arbitrage or “free money”. Oil needs to penetrate the Gulf Coast refining market to recognize higher prices. Sounds simple. (more…)
Posted in Eagle Ford Shale Blog, News, Pipeline Midstream News
Tagged Bakken Shale, Brent Crude, Cushing OK, Pipelines, Rail Facility, Railroad, WTI
Eagle Ford Companies Rank as Top Natural Gas Producers
Eagle Ford companies dot a list of the Natural Gas Supply Association’s (NGSA) top 40 natural gas producers in the U.S. 18 of the top 40 gas producers in the U.S. also have an interest in the Eagle Ford Shale.
In total, the 18 Eagle Ford operators on the list produce more than 19 Bcf per day net to the companies. Assuming a 20% uplift for royalty and fuel loss, gross volumes easily top 24 Bcf per day. That’s 32% of the 69 Bcf per day produced in the onshore Lower 48 states as of June (Source: EIA). (more…)
Posted in Eagle Ford Shale Blog, News
Tagged Eagle Ford Companies, Natural Gas Supply Association, Production, Top Producers
