The Eagle Ford Shale drilling rig count grew by 1 rig again this week. Activity across the play is resisting sub-$3 natural gas prices and it looks like we’ll find out if operator’s capital budgets can resist low gas prices as well. EOG Resources increased its reserves estimate to 1.6 Billion barrels and I don’t believe they will be slowing down any time soon.  It will be interesting to see what happens for the guys producing more natural gas and not benefiting from oil prices across their portfolio. La Salle County dropped two rigs, so we have no counties with more than 40 rigs working.

The natural gas rig count was up 2 this week to 81.  The entire increase was attributable to Karnes and DeWitt counties where gas wells produce considerable amounts of liquids. The oil rig count fell 1 to 175.  Natural gas and oil prices were both up a bit on the week. Gas prices were trading at ~$2.70/mmbtu on Friday and the March WTI oil contract increased to more than $103 per bbl. Horizontal wells account for activity from 237 rigs and we have 1 disposal well being drilling in Leon County (not a core Eagle Ford area).

La Salle County’s lead in drilling shrunk to 1 with 38 rigs working.  Karnes (37),Webb (34), DeWitt (25), McMullen (23), Gonzales (22), Dimmit (16), and Live Oak (10) make up the top Eagle Ford targeted counties.

It was another busy week for news on the pipeline and midstream side, but EOG’s addition of 700 million barrels in potential reserves in the Eagle Ford trumped all other announcements.

News

• Bee County Passed a $9,500 Well Fee For Road Repairs
• Enterprise Plans to Expand the ECHO Oil Terminal
• Energy Transfer is Adding a NGL Fractionation Plant in Mont Belvieu to Handle Eagle Ford Volumes

Operator News

For everyone out there considering all the driving jobs that are paying north of $30 an hour, Devorah Fox of Mike Byrnes & Associates, Inc. contributed an article related to getting a CDL license.

• Get a CDL in 10 Easy Steps

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The Eagle Ford Shale drilling rig count increased by 1 this past week and we’re getting a lot of movement between counties. La Salle County added another rig to hit 40, while Karnes (35) and Webb (31) counties fell.

The natural gas rig count fell 4 rigs to 79 this week, while we added 5 oil rigs (176). Natural gas prices remained flat at ~$2.50/mmbtu and the natural gas storage glut grew to more than 700 Bcf year over year.  It’s hard to imaging gas prices improving substantially until a substantial number of natural gas rigs across the country are laid down.  March WTI oil prices increased to almost $99 per bbl. Horizontal wells account for activity from 237 rigs and we have 1 disposal well being drilling in Leon County (not a core Eagle Ford area).

La Salle County expanded its lead in drilling with 40 rigs running in the area.  Karnes (35),Webb (31), DeWitt (25), McMullen (23), Gonzales (23), and Dimmit (18) set the bar as core development areas in the Eagle Ford.  This week, Live Oak County jumped to 10 rigs to join the pack of counties with double digit rig counts.

It was a busy week for news with a couple of major midstream announcements and several updates from operators:

Midstream News

• Boardwalk Adding 150 mmcfd of Processing
• Southcross Energy Adding Eagle Ford Fractionation Plant
• Copano Energy Announced an Expansion of the DK Pipeline

Operator News

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The Eagle Ford Shale drilling rig count remained flat this week, but we experienced a lot of movement between counties. La Salle County jumped 5 rigs to surpass Karnes and Webb counties, who have combined to hold the lead in terms of rig activity for the past year. Webb County lost 3 rigs, but no other counties gained or lost more than 1 rig.

The natural gas rig count held flat (83) on the week, while we lost 1 oil rig (171). Natural gas prices fell back to ~$2.50/mmbtu and it looks like growing production across the U.S. is going to stand in the way of higher prices for the foreseeable future.  March WTI oil prices were down a little on the week at $97 per bbl. Horizontal wells account for activity from 238 rigs drilling and we have 1 disposal well being drilling in Leon County (not a core Eagle Ford area).

La Salle County took the lead in drilling with 39 rigs.  Karnes (38),Webb (33), DeWitt (28), McMullen (23), Gonzales (19), and Dimmit (19) lead the pack and are the only counties with more than 7 rigs active.

News in the Eagle Ford included:

• Marathon to Double Eagle Ford Production in 2012
• Pioneer Natural Resources Reports Year-end Eagle Ford Shale Reserves
• U.S. Energy & PetroQuest Eagle Ford Operations Updates
• Comstock Resources Plans $193 Million Eagle Ford Capital Budget
• Magnum Hunter Lavaca County Wells Produce 2,000+ boe/d
• Murphy Oil Plans Eagle Ford Spending of $1-1.2 Billion per Year
• Eagle Ford Bank Deposits Are Setting the Pace in Texas

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The Eagle Ford Shale drilling rig count fell 10 rigs over the past week to 255 active units. The biggest declines were Karnes County, dropping 6 rigs, and Webb County, dropping 4 rigs. The natural gas rig count held flat on the week, while we lost 10 oil rigs. While considered commonly considered oil rigs, both Karnes and Webb county are parts of the Eagle Ford where wells produce a considerable amount of gas.

Oil prices held around $100/bbl through most of the week.  Natural gas prices rebounded off ten-year lows to ~$2.77/mmbtu, with the market belief that other producers would follow Chesapeake’s lead in shutting in production and moving rigs out of gas plays. Horizontal wells account for activity from 238 rigs drilling and we have 0 injection or service wells being drilled.

Karnes County kept its lead in drilling with 37 rigs. Webb (36), La Salle (34), DeWitt (28), McMullen (22), Gonzales (20), and Dimmit (18) lead the pack and are the only counties with double digit rig counts.

News in the Eagle Ford included:

• Water Supply is Sufficient in South Texas
• ConocoPhillips Plans to Double Eagle Ford Production in 2012
• Kinder Morgan Eagle Ford Infrastructure Update
• Fire in Pearsall Last Week
• Eagle Ford Oil Production to Eclipse 400,000 b/d in 2015

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The Eagle Ford Shale drilling rig count moved up 2 this past week. The rig count was relatively flat again week over week. Rigs targeting natural gas continue to be the only threat to the region. At current price levels, we’re getting close to operational costs for wells and that means tough decisions will have to be made in regards to shutting in lower volume (high cost) wells.

Natural gas prices are approaching ten-year lows at ~$2.30 / mmbtu. With that, we still added 5 gas rigs this week. Those units are likely targeting portions of the play with a rich condensate and NGL stream. We dropped 3 oil rigs, but prices held flat at $98/bbl through most of the week. Horizontal wells account for activity from 245 rigs drilling and we have 0 injection or service wells being drilled.

Karnes County expanded its lead in drilling this week with 43 rigs. Webb (40), La Salle (33), DeWitt (26), McMullen (24), Gonzales (21), and Dimmit (19) are the most active counties. Frio County did jump to 10 active rigs this week to round out the counties with double digit rig counts.

News in the Eagle Ford included:

• Eagle Ford NGLs are Adding to U.S. Supply Growth (Exclusive)
• Oil India Eagle Ford Position Coming Soon?
• Sanchez Energy Provided an Eagle Ford Operations Update
• Traffic Jams in Cotulla are More and More Common

Jeff Venghaus, from Jones Lang LaSalle, contributed an article addressing Eagle Ford Industrial Real Estate. If you are making plans to expand or grow your business, be sure to read his post at our Eagle Ford Blog.

Don’t forget our blog platform is open. If you have professional experience in the Eagle Ford and would like to be considered as a contributor, please Contact Us about guest blogging.

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The Eagle Ford Shale drilling rig count fell 1 rig to 263 this past week. The rig count hasn’t moved much over the past month. It will be interesting to see if natural gas prices go low enough that operators cut back across the board. They might not want to, but without the capital you can’t drill a well no matter how good the prospect is.

Oil prices fell a couple of dollars to $98/bbl on the back of news that an EU oil embargo won’t happen for at least 6 months. Natural gas prices continued a path to pain for operators. The February natural gas contract is bouncing around $2.70/mmbtu (Henry Hub) and the natural gas rig count is falling quickly.  We lost 8 gas rigs this past week, which means we’ve lost 15 in the past two weeks. The loss was almost completely absorbed by the addition of 7 rigs drilling for oil (185 total). Horizontal wells account for activity from 244 rigs drilling and we have 0 injection or service wells being drilled.

Karnes County retook the lead in drilling this week and leads the region with 40 rigs. Webb (39), La Salle (32), DeWitt (27), McMullen (25), Gonzales (23), and Dimmit (20) are the hottest counties.

News in the Eagle Ford included several corporate announcements and a lot of energy around the Laredo Eagle Ford Job Fair. We also have another Eagle Ford Job Fair next week in San Antonio. Other news over the past week included:

• Talisman Energy Sets 2012 Eagle Ford Budget
• GeoResources Sold Atascosa County Acreage to Focus in Fayette and Gonzales
• Flint Hills Resources to have Corpus Christi Terminal Open by Summer

Cal Chapman, P.E. contributed an article addressing Corrosion Control in the Eagle Ford. If you are an operator or have equipment working in the region, be sure to read his post at our Eagle Ford Blog.

Don’t forget our blog platform is open. If you have professional experience in the Eagle Ford and would like to be considered as a contributor, please Contact Us about guest blogging.

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The Eagle Ford Shale drilling rig count fell 1 rig to 264 this past week. The rig count has remained virtually flat over the past few holiday weeks.

Oil prices have moved back above $100/bbl and natural gas prices have remained about the same. The February natural gas contract is bouncing around $3/mmbtu (Henry Hub) and the natural gas rig count in our area began to show some weakness with a drop off of 7 rigs (86). The loss was almost completely absorbed by the addition of 6 rigs drilling for oil (178 total). Horizontal wells account for activity from 243 rigs drilling and we have 0 injection or service wells being drilled.

Webb (38) still leads the region, while Karnes (37), La Salle (32), DeWitt (26), Gonzales (25), McMullen (25), and Dimmit (22) still outpace other counties by more than 10 rigs. The only major move during the week was Gonzales County where 6 additional units went to work. EOG Resources (3) and Hunt Oil (2) operate 5 of the six new rigs.

News in the Eagle Ford was relatively slow until today when Hunt Oil and Marubeni announced a $1.3 billion Eagle Ford JV. Other news over the past week included

• EagleFordShale.com – Interviewed by Bisnow
• Goodrich Release 2012 Budget Plans
• Lucas Energy Added 5,500 Eagle Ford/Eaglebine Acres
• Apollo Management and Reliance Are Evaluating Bids for El Paso’s Assets
• Tax Revenues are on the Rise in South Texas

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We’ll enter the 2012 with an Eagle Ford Shale drilling rig count of 265. With more than 210 of the rigs actively target the Eagle Ford proper, we’ve gone from Petohawk’s discovery well in 2008 to current levels in three years. We’ll enter 2012 at record development levels across much of the South Texas area.

Oil prices held a little below $100/bbl and natural gas prices are below $3 at the time of my writing. The January natural gas contract is bouncing around $3/mmbtu (Henry Hub) and the natural gas rig count in our area fell two rigs to a total of 93 rigs working. We reiterate our belief the Eagle Ford rig count will remain dependent on liquids prices.

The number of oil rigs working remained flat at 172. Horizontal wells account for activity from 244 rigs drilling and we have not injection or service wells being drilled.

Webb (40) still leads the region, while Karnes (37), La Salle (33), McMullen (26), DeWitt (24), Dimmit (23), and Gonzales (19) continue as the core development areas.

News over the past week was light with Christmas and New Year, but we highlighted a few important items:

• Exporting Eagle Ford LNG is One Step Closer
• Copano and Magellan Announced a Condensate Pipeline to Corpus Christi
• TCEQ Plans Air Quality Testing in 24 Counties Around San Antonio
• Carrizo Oil Exceeds 2011 Year-end Production Goals

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A small Christmas gift from the Eagle Ford Shale drilling rig count that jumped to 267 active rigs last week. Thats a new record for drilling in the area (again). The previous high was 264 set during the week of November 18, 2011. With most companies adding rigs in the new year, don’t expect this record to last long. 245 of the 267 rigs are drilling horizontal wells. Vertical drilling now accounts for less than 10% of all drilling in the area (mostly non-Eagle Ford).

Oil prices recovered a bit over the past week (close to $100/bbl) and gas prices remained weak. The January natural gas contract is bouncing around $3/mmbtu (Henry Hub), but the natural gas rig count grew two rigs to a total of 95 rigs working the play. While $3 gas isn’t adding incremental development, the Eagle Ford rig count will remain dependent on liquids prices.

The number of oil rigs working increased by 10 to reach a total of 172. 

Webb (37) still leads the region, while Karnes (35), La Salle (34), McMullen (26), DeWitt (25), Dimmit (24), and Gonzales (19) round out the top counties in the area. All but McMullen added rigs during the week.

Hess Corporation added its first Eagle Ford operated rig. The unit is running in La Salle County, TX. Hess is one of the largest operators in the Bakken Shale in North Dakota.

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The Eagle Ford Shale drilling rig count fell 3 rigs last week to 256. It was a rough week in the commodities markets. Oil futures prices fell more than $5 (WTI <$94/bbl) and natural gas futures prices (HH<$3.15/mmbtu) continue to fall.

The January contract has fallen more than $0.50 over the past two weeks. Spring weather in Texas this past week isn’t helping the cause. The natural gas rig count fell 3 to a total of 93 rigs. While $3 gas isn’t going to help, the Eagle Ford rig count is more dependent on liquids prices than natural gas.

The number of oil rigs working didn’t change 162. Also, one service well is being drilled in Duval County. 233 of the 256 running (>90%) are drilling horizontal wells.

Webb (35) still leads the region, while Karnes (33), La Salle (31), McMullen (26), Dimmit (22), DeWitt (22), and Gonzales (18) round out the top counties in the area. The only significant change by an operator during the week was EOG who dropped 3 rigs.

News highlighted throughout the play included:

• Rosetta Resources Eagle Ford Budget Almost $600 Million – 2012
• Forest Oil Dropping to 1 Eagle Ford Rig in 2012
• Kinder Morgan Adding Eagle Ford Condensate Processing – HSC
• Burleson County Cotton Valley – Eagle Ford Well – Austin Exploration
• TexStar Eagle Ford Crude Pipeline – Open Season
• Penn Virginia Plans for Lower Production – Eagle Ford Delays

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