South Texas Drought a Concern in the Eagle Ford Shale

The Eagle Ford Shale Region needs rain.  South Texas is suffering one of the worst droughts on record and concern over the industry's use of water will continue.  Operators are beginning to recycle flow back, but much of the water isn't returned at a time it can be recycled.  If the drought continues, the industry will be looking for new ways to source water for completions.

"With widespread pasture losses, crop failures and shortages of water in rivers, reservoirs and wells, the Carrizo and Gulf Coast aquifers, which underlie the region, already are under increased pressure to meet the needs of agriculture and cities.""Add to that the tens of thousands more wells expected to be drilled in the coming two decades, each of which requires millions of gallons of water to unlock the hydrocarbons within the shale, and the increased workforce needed to make the boom happen, and a perennial question for the region becomes even more urgent:

Is there enough water?"

"It depends on which part of the Eagle Ford shale play you're talking about, how much water will be needed, what are the supply options, and what level of activity is taking place. On top of those variables is a relative lack of regulation for water used in drilling."

"Most of the water used for oil and gas drilling in the Eagle Ford comes from groundwater, which is regulated by groundwater conservation districts."

"Among those districts, there is less concern that drilling activities will impact the massive Carrizo-Wilcox, located above much of the oil- and gas-rich shale, than the Gulf Coast Aquifer, located to the south and east of the Carrizo."

Read the full news release at mysanantonio.com

Victoria Convention Center Wants Eagle Ford Visitors

Victoria is staffing up in an effort to increase its marketing efforts to visitors and workers in the Eagle Ford Shale. Several cities are growing as a result of the booming oil and gas industry in South Texas. The county isn't home to much drilling, but is home to field offices for several companies working the Eagle Ford. We'll begin to see more of this as the various towns compete for Eagle Ford dollars.

"The bureau is in the process of moving financial reports over to the city and updating job descriptions, said O.C. Garza, the city's communications director.""The search for a new executive director will likely begin within the next week or so, he said, and the ideal candidate will have three or more years of experience in a tourism administrative role. An ability to manage both the budget and staff, as well as lay down strategic plans for travel to Victoria, is also important."

"The bureau's switchover from Victoria Chamber of Commerce management to the city's management is on the agenda for Tuesday's city council meeting. The change is expected to be official Aug. 1, Garza said."

Read the full news release at victoriaadvocate.com

Marathon Oil - Focusing on the Eagle Ford Shale

Marathon is gearing up for hiring as the company increases its staff levels after acquiring Hilcorp Energy and KKR's acreage in the Eagle Ford Shale in June.  The Eagle Ford has become core to Marathon's North American strategy.  With the refinery business split out as a new company called Marathon Petroleum, all human and financial capital will be spent expanding the upstream business.

On Thursday, Houston-based Marathon Oil Corp. completed a spin-off of its refining business and was reborn as a smaller oil and gas exploration and production company.

Company executives told the Houston Chronicle that Marathon will focus on unconventional oil plays in the U.S., a plan it enhanced in June by announcing a $3.5 billion deal to double its acreage in the Eagle Ford shale of South Texas.

On Friday, Dave Roberts, Marathon's executive vice president and chief operating officer, discussed the company's push in the Eagle Ford shale with the Express-News.

Read the full news release at mysanantonio.com

Eagle Ford Shale Rig Count - July 1, 2011

rig worker
rig worker

The Eagle Ford Shale rig count is up 4 rigs to 220 active drilling rigs from 216 the prior week. The gas rig count rose 3 rigs to 111 rigs drilling, while the oil rig count rose 1 rig to 108 active rigs. One rig is drilling an injection well.  Horizontal rigs account for 200 of the 220 rigs drilling in the South Texas region. Drilling activity should continue to climb over the coming months as operators commit more rigs to the play. Stay tuned right here each week for updates on the South Texas rig count, or receive these updates as part of our free news feed.  Subscribe by RSS.

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 rig count referred to in this article is for ALL drilling reported by SmithBits and not solely wells targeting the Eagle Ford Shale.

All land rig count 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.

US Energy Corp - Crimson Exploration Expand Eagle Ford Acreage Agreement

US Energy Corp and Crimson exploration have reached another participation agreement in the Eagle Ford Shale. US Energy now has over 3,500 acres with the potential for 70 gross and more than 20 net wells in Dimmit and Zavala counties.

"This acquisition brings USE's total acreage in the Eagle Ford to approximately 11,861 gross acres (3,558.5 acres net to USE) with the potential for up to 70 gross and 21.3 net Eagle Ford drilling locations.""The prospect is in the Eagle Ford shale oil window in Zavala and Dimmit Counties, Texas. "

" 'We are pleased to announce another oil venture with Crimson Exploration.  These assets complement our existing Leona River acreage and provide both U.S. Energy and Crimson with a potential multi-year drilling inventory in the Eagle Ford oil window,' stated Keith Larsen, CEO of U.S. Energy Corp. 'We look forward to drilling our first well on this acreage in the near future and to continue seeking additional Eagle Ford opportunities with Crimson as well,' he added."

Read the full press release at usnrg.com