What is a Frac Holiday?

Frac Job Control Room
Frac Job Control Room

You might have heard a few operators mention "frac holidays" during earnings season the past two quarters. Don't worry, you're not going to be flooded with discount emails and advertisements.

A "Frac Holiday" is a term used when an operator let's its frac crews take time off for various reasons.

Oil and gas operations have hundreds of steps and processes. Companies attempt to plan best as possible, but one thing they don't want is a bottle neck at the end of the line. If a company can't complete a well,  it has a big investment and no revenue. For that purpose, a lot of companies work with excess frac'ing capacity. When crews get ahead of the drilling schedule, crews will be given time off to allow rigs to catch up.

South Texas Community Colleges Get $1.3 Million Grant

S. TX Expo Event Registration Line
S. TX Expo Event Registration Line

Community colleges in South Texas are getting an early Christmas present. A $1.3 million grant from the Texas Higher Education Coordinating Board is being directed to the area in hopes that the money will help place low-income students in oilfield jobs. Some of the money will be directed toward medical occupations as well.

The Eagle Ford Job market has left South Texas with a shortage of qualified labor. Companies are in need of welders, commercial truck drivers, qualified operators, and even engineers.

The program is ear marked for as many as 1,200 students who have basic skills. Many of the grants will be used to help students who didn't complete high school or have limited English speaking ability.

Alamo College will facilitate the grant, but money will flow to community colleges in the Coastal Bend, Laredo, SW Texas, and Victoria. Many of the schools can be found on our Eagle Ford Training & Education page.

The Oil Boom Stops at the Mexico Border

Jose Alcala is intrigued by what could be just across the border in Mexico, where friends and relatives live and too often struggle finding jobs.

“You know, the oil doesn’t stop at the border,” he said. “It just goes on and on into Mexico.”

 

But the boom in oil and gas development does stop at the border, for the most part, a victim of the insecurity generated by warring drug cartels and by a Mexican energy sector that has been stunted by bureaucracy and lack of innovation, observers say.

Read the rest of the story at DallasNews.com

Eagle Ford Shale Regional Rig Count at 270 - Nov. 16, 2012

Eagle Ford Shale Well Map
Eagle Ford Shale Well Map

Eagle Ford Shale drilling increased 11 rigs to jump back to 270 units drilling in the region. Growth was largely attributable to La Salle (35 rigs) and Karnes (36 rigs) counties. 270 rigs puts the region back at the average rig count for 2012. Earlier in the year, I noted the Eagle Ford rig count would likely decline (Here) throughout the remainder of the year if oil prices didn't go above $100. I was wrong. Many of the major operators have dropped rigs as they have reached certain milestones in drilling time, but others have stepped in. As the most efficient operators dropped rigs, they were almost simultaneously being picked up by other companies in the play.

In the second half of the year, we've seen Chesapeake and EOG drop 10 rigs or more each, but Marathon and BHP (Petrohawk) have added almost enough rigs to offset those declines. Then there are the small and mid-size operators who are adding a rig at a time in support of regional development. What I thought would be an overall decline in active rigs has turned out to be a non-event.

Eagle Ford Oil & Gas Rigs

The natural gas rig count grew to 57 on the week. Natural gas prices reached a 2012 high on Friday when the commodity was traded $3.80 per mmbtu. The worries of natural gas storage being pushed to a maximum have been relieved and the price will be very much dependent on weather in the coming months.

The oil rig count gained back its losses from last week to settle at 213 running. WTI crude futures were almost unchanged for the third week in a row. Oil was trading at ~ $87 per barrel on Friday. Eagle Ford crude priced at $97/bbl on the 15th of November. Light crude and condensate in the area traded at $82 and $81, respectively.

There are 256 horizontal rigs running in the region. Karnes County leads development with 36 rigs running. La Salle with 35 rigs, McMullen (29), Webb (26), Dimmit (21), Gonzales (22), DeWitt (19), Live Oak (13), Atascosa (9), Fayette (8) and Lavaca (8) round out the top Eagle Ford counties.

Oil & gas news items this week included:

Devorah Fox of Mike Byrnes & Associates contributed great article discussing the Steps in Planning a Safe Heavy Load Haul.

Be sure to visit our South Texas Oilfield Job Listings to search openings and come back weekly for updates or sign up for alerts.

Eagle Ford 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.

Eagle Ford Shale Drilling by County

Plan a Safe Trip in the Eagle Ford Shale Play of South Texas

Tanker Truck on the Highway
Tanker Truck on the Highway

In mid-October, 2012, the Hawaiian Star Advertiser had a report about how a dump truck towing a trailer loaded with a forklift smashed through a pedestrian bridge, closing westbound lanes for about four hours. The crash caused a multi-ton section of the bridge to fall to the ground. Fortunately no one was injured but the repair bill was estimated to be between $200,000 and $300,000. The state’s Department of Transportation planned to ask the truck’s owner to pay for the repairs.

According to the report, the bridge had a clearance of 15 feet, 6 inches and the clearance was posted on a sign. A state DOT spokeswoman said that the trucking company did not have an overload permit.

The online newspaper of the Lower Hudson Valley in New York reported a similar mid-October accident: traveling in the southbound lane of the New York State Thruway, a flatbed truck carrying a dump truck hit an overpass, resulting in a three-vehicle accident. The dump truck’s spread came loose and ended up in the right lane.

It doesn’t take a lot of searching to find reports of accidents, including those with fatalities, caused when commercial trucks strike overpasses. Without proper planning, such accidents can easily occur traveling to and from the oilfields in the Eagle Ford Shale Play where many farm-to-market and county roads pass under state highways.

Plan Your Route in South Texas

Obtaining permits and planning routes that won’t present clearance issues are a driver’s responsibility. Both are part of trip planning. Getting your load to its destination safely and efficiently is the name of the game.

Freight comes in all shapes and sizes and in some cases could be a nightmare for drivers' trip planning. Loads hauled to service the oilfield are frequently oversized, overweight or both.

Oversize loads that require special permits are difficult to maneuver especially in large cities and areas that have poor infrastructure. Roads in the oilfield take a beating and that presents a challenge for the driver.

Many accidents happen because of the failure to plan the trip accordingly to avoid low bridges, major dips in roadway and poor signage. It does sometimes happen that the posted clearance is not accurate, because the road has been repaved or due to some other factor. To make allowances for that, assume that there can be as much as a six- to nine-inch difference between the posted and the actual clearance.

Trucker maps and other trip planning aids are usually quite reliable. However the roads in the oilfield take a lot of abuse and their condition changes faster than trip planning aids can keep up with. Check with the Department of Transportation if you have any concerns about the roads that you want to take. The smart trucker avoids unnecessary driving challenges and plans to avoid roads that are likely to be rough from so much use.

As a professional driver, you should be completely familiar with your equipment and the space required in which to maneuver safely.

Heavy Load Trip Planning Tips

Here are some helpful tips when trip planning:

  1. Map out the most efficient route to your destination.
  2. Get familiar with the type of load you will be transporting. Will you need to take alternate routes because of hazardous materials? Is your load oversized and will it need additional space to maneuver?
  3. Check with local, state and federal guidelines to see if  if permits are required.
  4. Do a thorough Vehicle Inspection to make sure your vehicle and cargo will be safe.
  5. Always be well rested and focused before every trip to ensure you get to your destination safely.

Plan to Be Safe

Professional commercial motor vehicle drivers are charged with keeping our roadways safe. Safety for you and those who share the road with you is the number one priority from the start of the trip to the journey home. Before every trip it is ultimately your responsibility to make plans to travel safely.