Pipeline Explodes in DeWitt County

June 16, 2015 Elizabeth Alford

Karnes County Well Explosion — DeWitt County Pipeline Explosion

An underground pipeline belonging to Energy Transfer Partners exploded late Sunday in DeWitt County near the town of Cuero.

The explosion sparked a massive fire and caused several area homes to be evacuated as a precaution. There were no injuries and all residents were able to return home safely.

Clean-up from the blast will involve crews replacing sections of the pipeline that were damaged. include repairs on a stretch of roadway that melted under the heat of the fire as well as

“Sheriff Zavesky said the fire died down around 11:30 pm Sunday, but a trench where the affected pipeline was buried could still be seen smoldering on Monday afternoon.”

— The San Antonio Business Journal

Officials from Texas Railroad Commission, Energy Transfer Partners and county officials are investigating the accident.

This is the second explosion of its kind in the Eagle Ford since the beginning of the month. An accident at an Encana Corp well last month is still wreaking havoc on a small area of Karnes County.

Producers Defend Fracking Practices

June 15, 2015 Elizabeth Alford

4.0 Quake Hits North Texas — RCC Studies Texas Quakes

XTO and Enervest were summoned to Austin last week to try and persuade the Texas Railroad Commission that their operations are not to blame for recent earthquakes in North Dallas.

This unusual request was a result of a highly-publicized and debated study conducted by SMU researchers that concluded two specific wastewater injection wells are likely the cause of a rare string of earthquakes over the last few years (more here). Though the public seems convinced of this causal link, Railroad Commissioner Ryan Sitton said publicly he is 'unconvinced'.

XTO, a subsidiary of ExxonMobile, presented mounds of evidence to defend their fracking practices including more than 30 exhibits, dozens of slides, and three expert witnesses. The company argued that the unusual seismic activity was a natural occurrence and in hopes that the RRC from shutting down their wells.

“The earth has been moving continuously over time, and that movement is the result of natural tectonic forces far away but that express themselves right here.”

— Tim George, Attorney for XTO

This is the first time the commission has required a company to prove it’s not to blame for earthquakes. Recent policy changes now allow the agency to revoke permits if wells are linked to earthquakes.

Enervest is expected to put on its case today and tomorrow.

You can watch the hearing at rrc.com

Eagle Ford Rig Count Holds Steady

June 12, 2015 Elizabeth Alford

EFS Rigs Decrease — Eagle Ford Rig Count at 114

The Eagle Ford Shale rig count stayed flat this week with 114 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, scientists met with Railroad Commissioner Ryan Sitton and other officials for a technical discussion about the science behind a recent study that links fracking and earthquakes.

The U.S. rig count fell by nine, ending with 859 rigs running by midday Friday. A total of 221 rigs were targeting natural gas (down one from the previous week) and 635 were targeting oil in the U.S. (seven less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)363 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties. The rig count published on EagleFordShale.com includes a 30 county area impacted by Eagle Ford development. A full list of the counties included can be found in the table near the bottom of this article.

Eagle Ford Oil & Gas Rigs

Natural gas rigs in the Eagle Ford rose by three to 22 this week and natural gas prices traded at $2.76/mmbtu, an increase of $.17 from the previous week.

The oil rig count decreased by three to 92 with WTI oil prices moving upwards this week to $59.98, an $.85 increase. A total of 110 rigs are drilling horizontal wells, zero rigs are drilling directional wells, and four are vertical rigs. LaSalle moved ahead this week and is running 21 rigs, while Karnes (19), Webb (17) and DeWitt (17)following closely. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

Eagle Ford Shale News

Texas Outranks OPEC Nations

Eagle Ford Shale Midstream Sold

Karnes County Accident Worst in 20 Years

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 Baker Hughes 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.

Texas Outranks OPEC Nations

June 11, 2015 Elizabeth Alford

The latest figures from the American Petroleum Institute (API) reveal that many individual states now outstrip whole countries when it comes to natural gas production. And, not surprisingly, Texas is on top.

Texas leads the world by producing 18.81 billion cubic feet of natural gas per day, more than more than any member of OPEC. Louisiana, Pennsylvania, Wyoming, Oklahoma and Colorado all rank among the top 20 energy-producing nations in the world.

The Lone Star State also leads in crude oil production and is ranked 8th in overall global production. The Eagle Ford Shale alone accounts for more than 1.5-million barrels of crude oil per day.

“This is what energy security looks like,” Tracee Bentley, head of the Colorado Petroleum Council, said. “Thanks to innovations in hydraulic fracturing and horizontal drilling, Colorado now outpaces seven of 12 OPEC nations in natural gas production.”

OPEC’s announcement last Friday that it will stick with its policy to produce oil at a high rate, has not intimidated American shale producers.

Eagle Ford Shale Midstream Sold

June 10, 2015 Elizabeth Alford

Enterprise Products Partners (EPD) will acquire Eagle Ford Shale (EFS) Midstream for a total price of $2.15 billion.

The deal announced this week includes an agreement with Pioneer Natural Resources and Reliance Industries who each own shares in EFS and is expected to be closed in the third quarter this year. The purchase price will be split into two installments, with $1.15 billion to be paid at the transaction closure. The balance of $1 billion will be paid within 12 months of the closing date.

“This ‘bolt on’ acquisition extends our integrated system deeper into the NGL and condensate rich areas of the Eagle Ford, which will provide us with the ability to offer services to additional producers and increase volumes on our system.”

— Michael A. Creel, Chief Executive Officer of Enterprise

EFS Midstream designs, constructs, owns and operates facilities that provide gas gathering, treating, condensate stabilization, and transportation services for operations in the Eagle Ford Shale and offers nearly 460 miles of natural gas gathering pipelines and ten central gathering plants. The firm maintains 119 thousand barrels of condensate stabilization capacity per day and can treat 780 million ft3 of natural gas daily.