Is Eagle Ford Oil Production Causing Earthquakes?

Eagle Ford Earthquake Map
Eagle Ford Earthquake Map

The surge in Eagle Ford production over the past few years has likely led to small earthquakes in the region.

Enough oil and water is now being produced that it is likely rocks are settling and faults are slipping, which causes small earthquakes.

That's the conclusion from a two-year study completed by the UT Institute for Geophysics.

The study was published in the Earth and Planetary Science Letters.

Findings from the study include:

  • No link found between hydraulic fracturing and earthquakes
  • Authors compare South Texas to California during the oil boom of the 20th century
  • Earthquakes are likely linked to areas of oil & gas production and are often undetectable at the surface

In other studies, seismic activity was linked to waste water injection wells. Both a UT study in the Barnett and a USGS study in Ohio have linked earthquakes to injection wells. The results of this study seem to indicate we're going to find differences across regions.

“Science is seldom that simple.”
— Mr. Frohlich

[ic-l]*Note - The study was done while the National Science Foundation had measurement tools in place that have never been available in South Texas. 58 of the tremors measured were not recorded by tools the USGS has in place. I trust the researchers at UT, but it is tough to call a two year peek into eons of data a significant sample size. This probably won't be the last study on the topic, so we'll have to watch for additional data points as they become available.

Read more from Tom Fowler at wsj.com

Murphy Oil's Liquids Production Grows 30% - Thanks To The Eagle Ford

Murphy Oil Eagle Ford Production Chart
Murphy Oil Eagle Ford Production Chart

Murphy Oil produced over 204,000 boe/d in the second quarter and 135,000 b/d of production was attributable to oil & gas liquids. The liquids volume reported represents growth of more than 30% from the same period in 2012. It should be no surprise the company attributes much of its growth to the Eagle Ford.

Murphy estimates the Eagle Ford will account for a little less than 40,000 boe/d in 2013 and production could ultimately rise to as much as 100,000 boe/d over the next five years.

Don't Forget - It's the last day to register for the Eagle Ford Well & Frac Design Conference tomorrow - Register Here

“The increase in oil production in 2013 was primarily attributable to higher production in the Eagle Ford Shale area, where significant development drilling and completion operations are ongoing.”

Murphy Oil's Eagle Ford Drilling & Completion Costs Falling

[ic-l]Murphy reports improving costs in both the drilling and completion of Eagle Ford wells. Drilling costs per foot have fallen from $291 in 2010 to $169 (down 42%) in the first quarter of 2013. Simlarly, completion costs per lateral foot have fallen from $1,210 to $763 (down 35%) during the past three years.

Murphy's operating costs in the Eagle Ford have fallen from ~$35/boe to a little more than $20/boe today. The company expects operating costs will fall to approximately $15/boe by 2015.

Murphy Oil is in the process of spinning off its U.S. Retail business into a new company names Murphy USA. Murphy Oil will be a pure play E&P company when the transaction is completed at the end of August.

Read the full Q2 press release at murphyoilcorp.com

Trophy Oaks Subdivision Lots Hit The Auction Block - Atascosa County - Press Release

Trophy Oaks Entrance
Trophy Oaks Entrance

Thirty residential building lots in the Trophy Oaks subdivision on FM 476 in Poteet, TX, ranging in size from 1 acre to 10 acres will be auctioned on Saturday September 7, 2013, at noon by NYTex Auctions.  Ten of the twenty-two one acre lots being offered will be sold Absolute.

The development with many large oak trees is in a prime location outside of Poteet, yet within a short drive to San Antonio, the Toyota plant and the booming Eagle Ford Shale area. The lots are located less than 15 minutes from Pleasanton and Jourdanton.

The current owner has owned the property for several years and has chosen to auction off the property in 1 to 10 acre lots. The subdivision includes:

  • 67 acres total divided into 30 lots
  • 22 - 1 acre lots
  • 8 lots ranging in size from 3.7 - 10.9 acres

Linda Welsh, Principal Auctioneer, expects that the property may sell to a local home builder or several home builders or individuals looking for a highly visible and convenient location for their home.

The lots may be inspected any time.  The auction will be held at the Holiday Inn Downtown at 318 W Cesar Chavez Blvd in San Antonio at noon on September 7, 2013. The doors will open at 11 am for registration.  For more information or to obtain a Property Information Package visit www.NYTexAuctions.com.

About NYTex Auctions

With offices in Austin, NYTex Auctions a DBA of Linda Welsh Auction & Realty Group are members of the National Auctioneers Association and the Texas Auctioneers Association.

Contact Information:

Linda Welsh or Leo Welsh

Linda Welsh Auction & Realty Group LLC 3801 No. Capital of TX Hwy, E240-412 Austin, TX 78746 [email protected] Office phone 512-263-1030 Linda Cell phone 512-657-4033 Leo  Cell phone 512-657-7350

The article above was published through EagleFordShale.com’s press release distribution service. Learn more about Eagle Ford Advertising Here.

Eagle Ford Regional Rig Count 273 - August 23, 2013

I-37 Gravel Road Frontage in Live Oak County - TxDOT
I-37 Gravel Road Frontage in Live Oak County - TxDOT

The Eagle Ford Shale drilling rig count increased six rigs to average 273 rigs running over the past week. That's just one rig off the 2013 high set three weeks ago.

The U.S. rig count was down 15 to 1,786, of which 848 are running in Texas. A total of 387 rigs are targeting natural gas and 1,382 are targeting oil in the U.S. The remainder are drilling service wells (e.g. disposal wells, injection wells, etc.).

TxDOT announced it has started converting paved roads to gravel in South Texas. Paved roads can cost $500,000 per mile to maintain, but gravel roads are much cheaper at $10,000. Lawmakers have raised concerns and TxDOT has indicated that some road conversions have been delayed by 60 days. On a case-by-case basis, counties can ask the state to reconsider. Read more in the article: Will Paved Roads In The Eagle Ford Be Converted To Gravel?

*Note* Now quoting Baker Hughes. Baker Hughes also releases its own Eagle Ford Rig Count that covers the 14 core counties (~234 rigs). 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

[ic-l]The natural gas rig count declined by three to settle at 40 rigs. That's still up from the low near 30 seen in April and June. Natural gas futures were trading around $3.50/mmbtu.

The oil rig count increased eight rigs to 233 running in the region last week. WTI prices were trading near $106/bbl and have held above $100 for seven weeks. Eagle Ford light crude traded at $103/bbl on August 23rd.

A total of 215 rigs are drilling horizontal wells and just 12 rigs are drilling true vertical wells. McMullen & Karnes counties lead development with 36 and 34 rigs running, respectively. See the full list of drilling by county below.

South Texas Oil & Gas News:

Reminder - Don't miss Tom Tunstall's piece on Texas Ghost Towns & Implications In The Eagle Ford

Be sure to visit our South Texas Oilfield Job Listings to search openings and come back weekly for updates or sign up for alerts - Daily or Weekly Email Alerts

Eagle Ford Shale Drilling by County

Eagle Ford Operated Rig Count By Company

SmithBits no longer reports its operated rig count, but we'll have updated number for you from a new source soon. Until then, you can reference our numbers from mid-April. There has not been a significant change in the overall rig count since this date:

hat 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 and/or Smith Service Co's (Schlumberger) Smith Rig Count.

ZaZa Energy CEO Buys Shares To Fund Eagle Ford Acquisitions

ZaZa Energy's CEO acquired 1.5 million shares worth $1.38 million in a private placement of common stock. The money will be used to fund acreage acquisitions in the company's eastern Eagle Ford and Eaglebine regions. [sws_blue_box box_size="630"]Todd Brooks, CEO of ZaZa stated, "ZaZa is poised for growth and I make this investment with an expectation of value creation through stock price appreciation over time. Proceeds from this transaction will be used for additional acreage acquisition in our core Eaglebine/Eagle Ford East development area." [/sws_blue_box]

Other notable events for ZaZa in 2013 include:

Read the full press release at zazaenergy.com