Eagle Ford Rig Count Flat at 267 - April 6, 2012

April 6, 2012 R.T. Dukes

The Eagle Ford Shale drilling rig count held flat at 267 rigs working after dropping below 270 for the first time since early March. The biggest change was realized in Webb County, where 9 rigs moved out. Webb County hit a peak of 41 rigs running in November of 2011, but the rig count has fallen in step with natural gas prices since. Much of the Eagle Ford formation is liquids rich in the northern part of the county, but almost all other development is natural gas focused. Lewis Petroleum had the biggest change of any of the major operators. The company dropped 6 rigs from 11 to 5. Watching their operated count over the next few weeks will help us determine if this is just one week blip in the rig count statistics or if the company has slowed down in response to gas prices.

Eagle Ford Oil & Gas Rigs

The natural gas directed rig count fell 8 to 67 running this week. That marks the first time we've fallen below 70 gas rigs running in the past year. DeWitt with 19 and Webb with 14 lead the natural gas focused counties. Oil directed activity jumped to 199 rigs and is back near all time highs set in mid-March.

Natural gas prices held almost flat week over week at 10-year lows and are trading at $2.09/mmbtu as of Friday afternoon. That's after trading below $2 intra-day earlier in the week. Oil prices remained flat at $103 per barrel (WTI). Not bad considering the equity market performance during the week.

250 horizontal rigs are running and we have 1 storage well being drilled in La Salle County. Karnes County leads development with 40 rigs. La Salle (39), DeWitt (28), McMullen (26), Dimmit (23), Webb (23), Gonzales (21), Atascosa (12), and Live Oak (11) make up the top Eagle Ford counties.

Devorah Fox, from Mike Byrnes & Associates contributed a great article related to Compliance Safety Accountability in the Eagle Ford. Be sure anyone with a CDL reads here tips and notes.

It was a slow week for news in the Eagle Ford. There was a successful Eagle Ford Job Fair earlier in the week and Chevron-Phillips is breaking ground on a world class petro-chemical plant.

Visit our Eagle Ford Hotels page. We've negotiated discounted rates with hotels that are welcoming the Oil & Gas Industry.

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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 Area Rig Count at 267 - March 30, 2012

March 30, 2012 R.T. Dukes

The Eagle Ford Shale drilling rig count fell 4 rigs for the second consecutive week to 267 active in the region. This week marks the first time we've fallen below 270 in almost a month. In reality, a few rig difference isn't likely much of a difference at all. In any given week, there area likely 10+ rigs waiting to spud or moving locations. If you haven't been to South Texas lately, consider a day trip to one of the more active areas of the play. We drove through much of the eastern portion of the play on our way to visit the job fair in Robstown on Wednesday. Every town has new buildings, restaurants, and hotels. It's truly an amazing site. The Eagle Ford is providing economic stimulus that is re-shaping the economy of South Texas.

Eagle Ford Oil & Gas Rigs

Natural gas directed rigs fell 1 to 75 running this week. We're down almost exactly 50 rigs from the gas rig peak in October. Over 50% of the active gas rigs are running in DeWitt and Webb Counties alone. Oil directed activity fell for the second week in a row. There are 191 active oil rigs running as of this week.

Natural gas prices have blown through 10-year lows and are trading at $2.12/mmbtu as of Friday afternoon. Oil prices fell a few dollars to $103 per barrel (WTI), as the overall equity and commodity markets fell this week. Keep an eye on the economy in the coming weeks. The economy (demand) is half the equation in determining the oil price. With the first quarter almost under wraps, the S&P 500 isn't sending positive signals. The benchmark index would have been down almost 2% in the first quarter if it hadn't been for significant growth from Apple. Apple single handedly brought the entire index to even over the past three months.

252 horizontal rigs are running and we have 1 storage well being drilled in La Salle County. Karnes County leads development with 42 rigs. La Salle (41), Webb (32), DeWitt (28), McMullen (23), Gonzales (22), Dimmit (10), Atascosa (10), and Live Oak (10) make up the top Eagle Ford counties.

Cal Chapma, PE, contributed an informative article regarding AC-Induced Corrosion on Pipelines. If you're working the midstream side of the business in South Texas, it's a must read.

News from the week included:

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.

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Drilling Rig Count by Operator

hat is the Rig Count?

Drilling Rigs by County

Eagle Ford Regional Drilling at 271 Rigs - March 23, 2012

March 23, 2012 R.T. Dukes

The Eagle Ford Shale drilling rig count fell 4 rigs to 271 active in the region. The region has held above 270 rigs for three weeks in a row and has added more than 100 rigs over the past 12 months. For reference, there are only 1,900-2,000 rigs running in all of the U.S.

Eagle Ford Oil & Gas Rigs

Natural gas directed rigs increased by 3 to 76 this past week. That's up week over week, but down from the 125 active rigs that were running in October of 2011. Over 95% of the active gas rigs are running in core Eagle Ford counties. Over half (40) are running in DeWitt and Webb Counties alone. Oil directed activity fell to 194 active rigs after spending two weeks above 200.

Natural gas prices are trading around 10-year lows at $2.27/mmbtu as of Friday afternoon. Oil prices fell a couple of dollars to $106 per barrel (WTI), on concerns higher prices are leading to changes in our consumption habits. With gasoline prices at record levels for this time of year, it seems likely the average American will drive less, possibly much less, this summer than normal.

Horizontal wells account for activity from 255 rigs and we have 1 storage well being drilled in La Salle County. Karnes County leads development with 41 rigs. La Salle (38), Webb (32), DeWitt (29), McMullen (25), Gonzales (22), Dimmit (21), Atascosa (10), and Live Oak (10) make up the top Eagle Ford counties.

News from the week included:

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 each week or sign up for alerts.

Drilling Rig Count by Operator

What is the Rig Count?

Drilling Rigs by County

Eagle Ford Regional Rig Count Forges Ahead - 275 Rigs - March 16, 2012

March 19, 2012 R.T. Dukes

The Eagle Ford Shale drilling rig count jumped 2 rigs to 275 active in the region. That's a record for the third week in a row. It's still very early in the year, but we're getting close to the possibility of crossing 300 active rigs in the area some time in 2012. The two major constraints will be gas price and whether companies can hire and move qualified personnel into the region.

Eagle Ford Oil & Gas Rigs

The natural gas rig count halted its decline to add 1 rig to reach 73 running this past week. While 73 rigs is significant, don't forget many of those rigs are supported by condensate production and rich gas streams. The shift to more liquids prone areas of the play isn't going to change until we get a change in natural gas prices. Oil directed activity remained flat at 201 active rigs. For the second week in a row, we've had more than 200 oil rigs drilling in the area.

Natural gas prices traded around 10-year lows, with continued news that weather will be mild across the country. Gas traded below $2.30/mmbtu several times during the week. Oil prices did rally to almost $108 per barrel (WTI), but with gasoline prices approaching records, we have to wonder when there will be a reaction on the demand side that drives prices lower. We're already hearing the mention of "stay-cations". It's expensive to travel with $4 gasoline.

Horizontal wells account for activity from 257 rigs and we have 1 injection well being drilled in La Salle County. Karnes County leads development with 40 rigs. La Salle (39), Webb (31), Gonzales (27), DeWitt (27), McMullen (27), Dimmit (17), Atascosa (10), and Live Oak (10) make up the top Eagle Ford counties.

News from the week included:

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 each week or sign up for alerts.

Drilling Rig Count by Operator

hat is the Rig Count?

Drilling Rigs by County

Eagle Ford Drilling Pushes to New Heights - 273 Rigs - March 9, 2012

March 9, 2012 R.T. Dukes

The Eagle Ford Shale drilling rig count jumped 4 rigs to 273 active in the region. That's a record for the area with four more rigs than the 269 rig record we set just one week ago. We are ten rigs above the 2011 exit rate and there are 10-15 more known rigs to be headed our direction over the coming months. If oil prices remain above $100, activity could possible stretch even higher.

Eagle Ford Oil & Gas Rigs

The natural gas rig count fell 2 to 72 this week. New lows in the natural gas rig count are coinciding with new highs in the oil rig count. Companies continue a shift in their operations from gassy portions of the play to areas that are supported by higher oil & condensate prices. Oil directed activity grew 6 rigs to drive us through the old record and to surpass 200 oil rigs working for the first time in the area.

Natural gas prices hit fresh 10-year lows this week on news that weather in the Northeast will continue to be mild. Gas traded below $2.30/mmbtu on Thursday. Oil held almost exactly the same - $106 per barrel (WTI) at the end of the week. The Eagle Ford is very attractive at $100+ oil prices and that's the main reason we haven't seen a drop in activity like many other areas of the country.

Horizontal wells account for activity from 254 rigs and we have no service wells being drilled. Karnes County leads development with 40 rigs. La Salle (38),Webb (31), Gonzales (28), DeWitt (27), McMullen (25), Dimmit (18), Live Oak (9), and Frio (9) make up the top Eagle Ford counties.

News from the week included:

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 each week or sign up for alerts.