Eagle Ford Drilling - Regional Rig Count Falls 10 January 27, 2012

January 27, 2012 R.T. Dukes

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:

Come back weekly for updates on the South Texas drilling rig count.

Drilling Rig Count by Operator

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 SmithBits 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 and/or Smith Service Co's (Schlumberger) Smith Rig Count.

Drilling Rigs by County

Eagle Ford Drilling is Resisting $2 Gas - January 20th, 2012

January 20, 2012 R.T. Dukes

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:

Jeff Venghaus, from Jones Lang LaSalle, contributed an article addressing Eagle Ford Industrial Real Estate.

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.

Come back weekly for updates on the South Texas drilling rig count

Drilling Rig Count by Operator

What is the Rig Count?

Drilling Rigs by County

Natural Gas Rigs Falling - Eagle Ford Shale Drilling Holds Steady

January 13, 2012 R.T. Dukes

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:

Cal Chapman, P.E. contributed an article addressing Corrosion Control in the Eagle Ford.

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.

Come back weekly for updates on the South Texas drilling rig count

Drilling Rig Count by Operator

What is the Rig Count?

Drilling Rigs by County

264 Rigs Working the Eagle Ford Shale Region - January 6, 2012

January 6, 2012 R.T. Dukes

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

Come back weekly for updates on the South Texas drilling rig count.

Drilling Rig Count by Operator

What is the Rig Count?

Drilling Rigs by County

265 Drilling Rigs Active as We Enter 2012

December 30, 2011 R.T. Dukes

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:

Come back weekly for updates on the South Texas drilling rig count.