Oil Field Workers Sue for Wages

Chesapeake Before Texas High Court
Oil Field Workers Sue for Wages

Hundreds of oil and gas workers in the Eagle Ford and around the country are suing oil and gas companies to win back lost wages.

Related: Shale Industry Loses Billions

As producers tighten their belts and streamline their operations to cope with the current downturn, some of their measures to cut corners may have been on the backs of their workers.

According to San Antonio Express News, there has been an upward spike in federal litigation related to the Eagle Ford shale and other plays around the country. The suits claim a variety of wage infractions against companies including failure to pay overtime, mishandling bonuses and misclassifying salaried workers and independent contractors.

Since the beginning of the year, 72 lawsuits have been filed in the U.S. District Court in San Antonio by oil field workers. This is 2½ times the number from last year and is 7 times the  number in 2013, when only 10 were recorded.

When times are good and people are making money, they’re not thinking about how they’re getting paid. But when things start going south, that’s when the claims start to arise, because they either are not making as much money or they can see the writing on the wall.
— San Antonio Attorney, Robert Kilgore

As of September 30th, theU.S. Department of Labor's Southwest Division has collected $22.3 million in wages on behalf of 4,700 workers. About $1 million of that amount was in the South Texas area on behalf of 590 workers.

Eagle Ford Rig Count Drops to 86

Eagle Ford Rig Count
Eagle Ford Rig Counts

The Eagle Ford Shale rig count fell by four this week ending with 86 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, lower oil prices and the drop in oil field activity have continued to impact the economy, with the Texas Economic Activity Index declining for a 10th straight month in August.

Read more: Texas Economy Declines

A total of 771 oil and gas rigs were running across the United States this week. 199 were targeting natural gas (two more than the previous week) and 572were targeting oil in the U.S. (five less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)340 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 below.

Eagle Ford Oil & Gas Rigs

Natural gas rigs in the Eagle Ford remained at 12 this week as natural gas prices rose slightly, trading at $2.37/mmbtu, a $.04 increase from the previous week.

The oil rig count dropped to 74 with WTI oil prices ending the week at $44.29, a decrease of $2.06. A total of 81 rigs are drilling horizontal wells, one are drilling directional wells, and four are vertical rigs. Karnes County leads the region in development with 21 rigs this week. 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 Oil & Gas Industry Will Prevail

Pioneer Resources Doubles Profits for Q3

Laborde Chosen as PSI Dealer/OEM

Anadarko Loses Big in Third Quarter

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.

Read more at bakerhughes.com

Texas Oil & Gas Industry Will Prevail

Texas State Flag
Eagle Ford Remains Strong

Despite the current downturn, Texas Railroad Commissioner Christi Craddick is still bullish on oil and gas in Texas saying recently, "We ain't seen nothing yet!"

Related: Shale Oil Down But Not Out

In a recent interview at the 2015 Texas Tribune Festival, Commissioner Craddick shared her prospective on a variety of issues that her agency faces including well inspections, earthquakes, flaring, local control and more. Craddick was very optimistic about the future of the oil and gas industry in Texas.

I think we haven’t seen anything yet. The potential for this state is huge and we know where the resources are. Are we in a downturn? Yes, and that’s not unusual for this industry. But I think there are still dollars to be made. In the long term, this state is well positioned to develop oil and gas

Craddick warned that the biggest risk to the Texas energy industry is the aggressive overreach of the federal government. She suggested that the Obama administration is making a focused effort to kill carbon fuels causing government agencies to make rules that do not make economic sense and are often based on shaky science. She is most concerned with increased legislation surrounding:

1) Air emissions: The goals to reduce emissions by 40% potential emissions is totally focused on the oil industry without taking into account many other contributing factors.

2) Fracking rules: The EPA is continuing a push for tighter regulations on federal lands, which cause undue slowdowns amd expense.

3) Endangered species: Regulations protecting endangered species often involve an encroachment on private property rights.

You can access the full interview below.

https://soundcloud.com/texas-tribune-festival/ttf15-christi-craddick

Laborde Chosen as PSI Dealer/OEM

Laborde
Laborde

Laborde Products, Inc. has been selected as a Dealer/OEM of Power Solutions International, Inc. (PSI) industrial engines.

Laborde, with more than 60 years of experience in the market, is excited to announce the agreement, which extends Laborde the right to sell and service PSI’s industrial off-road commercial engines to the markets it currently conducts business.

Both companies are enthusiastic about the opportunities that lie ahead. By combining PSI's leading technology with Laborde’s capacity to offer products and services of remarkable quality throughout an extensive commercial reach, Laborde is well positioned to provide the best alternative fueled power generation and oil and gas products and services. Laborde Products will focus most of their marketing efforts in the oil & gas market. The San Antonio division, known as Laborde Equipment Services, is located in South Texas where approximately 7,000 PSI engines currently operate.

About Laborde Products

Laborde Products provides heavy-duty engines, diesel and natural gas-powered equipment, service and support to meet the needs of the marine and industrial markets. As an engine distributor, the company provides approximately one-third of the United States as well as the US Gulf Coast with both marine and industrial engines.

About Power Solutions International, Inc.

Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of emissions-certified, alternative-fuel power systems. PSI provides integrated turnkey solutions to leading global original equipment manufacturers in the industrial and on-road markets. The company's unique in-house design, prototyping, engineering and testing capacities allows PSI to customize clean, high-performance engines that run on a wide variety of fuels, including natural gas, propane, biogas, diesel and gasoline.

PSI develops and delivers complete .97 to 22-liter power systems, including the 8.8-liter engine aimed at the industrial and on-road markets, such as medium duty fleets, delivery trucks, school buses and garbage/refuse trucks. PSI power systems are currently used worldwide in power generators, forklifts, aerial lifts, and industrial sweepers, as well as in oil and gas, aircraft ground support, agricultural and construction equipment.

Contact Roger Markwardt,
Industrial Manager, Laborde Products;
74257 Hwy 25, Covington, LA 70435;
985-892-0107;
Fax: 985-898-5824.
[email protected];
www.labordeproducts.com

Contact Jeremy Lessaris,
Global VP of Marketing & Communications,
Power Solutions International;
630-350-9400;
[email protected].

Pioneer Resources Doubles Profits for Q3

Chesapeake Released 2015 Q1
Anadarko Q3 2015

Pioneer Natural Resources Co. credits the sale of its Eagle Ford midstream operations to huge profits during the Q3.

Related: Anadarko Loses Big in Q3

Pioneer Resources released third quarter financial results this week that showed a solid results. Company executives highlighted the following:

  • Profits of $646 million, almost doubling the $374 million from last year
  • Horizontal rig count was reduced from nine rigs in 2014 to six rigs in early 2015
  • Capital program will remain steady at $2.2 billion

Pioneer's Eagle Ford drilling activity is focused in Karnes and DeWitt counties where they are operating six horizontal rigs that are expected to keep production essentially flat over the 2016 through 2018 period compared to the third quarter of 2015.

In a higher commodity price environment, Eagle Ford would definitely be a place we’d look to add capital. That said, what’s hurting the Eagle Ford today is the fact that we still produce a decent amount of gas with these wells and a decent amount of NGLs, particularly ethane. And so, with ethane economics and natural gas prices having been where they’ve been, you can see that it’s taken it a little bit on the chin.
— Timothy L. Dove - President, Chief Operating Officer & Director

Other Eagle Ford highlights for Q3:

  • Placed 36 wells on production in the Eagle Ford Shale during the third quarter
  • Production from the Eagle Ford Shale averaged 43 MBOEPD
  • Drilling capital allocated for Eagle Ford Shale is $390 million
  • The sale of Pioneer’s Eagle Ford Shale midstream business in July for $2.15 billion