Eagle Ford Drilling Record - 269 Rigs Working the Region - March 2, 2012

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Drilling Rig 9

The Eagle Ford Shale drilling rig count jumped 6 rigs to 269 rigs active in the region. That's a record for the area with four more rigs than the 265 rig record we set in January. Even with operators cutting back capital budgets across the board, this shouldn't be the peak for rigs in the region. If oil prices simply stay in the same range, we'll likely see 10-20 more rigs enter the play over the next six months.

Eagle Ford Oil & Gas Rigs

The natural gas rig count fell 4 to 74 this week. We're now at the lowest gas rig count seen in the region in over a year. Many of the rigs in the area have simply been reclassified or moved to more oily portions of the play. The oil rig count jumped 11 rigs to offset the drop in gas rigs and drive us through the modern record. We now have 195 oil rigs working. That is 10 rigs above the previous oil rig count record in the play.

Commodity prices didn't move too much on the week. Natural gas traded around $2.50/mmbtu this week and oil fell a couple of dollars to $106 per barrel (WTI) at the end of the week. $100 plus oil prices are very attractive for Eagle Ford operators and is why we're confident this isn't the last record.

Horizontal wells account for activity from 251 rigs and we have no service wells being drilled. Karnes County took the drilling lead back with an increase of three rigs (41). La Salle (40),Webb (33), Gonzales (28), DeWitt (27), McMullen (21), Dimmit (17), and Live Oak (9) make up the top Eagle Ford counties.

The major news of the week was from a group led by Apollo Announcing Plans to Buy El Paso's E&P unit for $7.15 Billion. The end of the week was capped by the Eagle Ford Consortium's first meeting and other news included:

Devorah Fox also contributed an article on Personal Safety in the Eagle Ford Shale Oilfield. If you are operating in the area, it is a good refresher.

If you're traveling to San Antonio soon, be sure to visit our Eagle Ford Hotels page. We've negotiated discounted rates with hotels that are welcoming the Oil & Gas Industry.

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 Regional Drilling Rig Count Adds 6 - Crosses 260 Rigs - Feb. 24, 2012

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The Eagle Ford Shale drilling rig count passed 260 for the first time in a month. 6 rigs were added to bring the total to 263. That's getting close to the 265 rig record we set in January. We've had several operational updates in the past week and all point to increased activity in 2012. Add the number of Eagle Ford Pipeline and Midstream expansion announcements we've had in the past couple of months, and it's easy to be confident about the long-term sustainability of the play. Midstream companies aren't willing to take the risks an upstream company might, so big expansions plans mean confidence.

Eagle Ford Oil & Gas Rigs

The natural gas rig count fell 3 to 78 this week. That matches the lowest level seen in the past year. The oil rig count jumped 9 rigs to 184 working. That puts us right back at the record 185 oil rigs we had working the second week of January.

Natural gas feel back to approximately $2.50/mmbtu this week and oil prices rallied over $109 per barrel (WTI). Higher oil prices will only attract more Eagle Ford development. Horizontal wells account for activity from 245 rigs and we have 1 disposal well being drilling in Leon County (not a core Eagle Ford area) by GSI Oil & Gas.

La Salle County's lead stayed at 1 with 39 rigs working. Karnes (38),Webb (35), DeWitt (25), Gonzales (25),McMullen (22), Dimmit (16), and Live Oak (11) make up the top Eagle Ford targeted counties.

We had several operators announce earnings and we'll be adding to the list we've covered so far in the coming days. Major news this week included:

News

If you're traveling to San Antonio soon, be sure to visit our Eagle Ford Hotels page.  We've negotiated discounted rates with hotels that are welcoming the Oil & Gas Industry.

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 Rig Count Up 1 Again This Week - Feb 17, 2012

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Drilling Rig 7

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

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.

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 Shale Drilling Rigs Moving - La Salle County Leads - February 10, 2012

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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

Operator News

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 Rig Count Stays Flat - La Salle County Leads - Feb 3, 2012

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Drillingl Rig 5

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:

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