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NuStar Energy has received binding commitments filling its first phase of the company's planned Eagle Ford expansion.
Read more about the expansion in the article - NuStar Energy Planning Eagle Ford Pipeline Expansion
The first phase will increase capacity by 35,000 b/d to the company's Corpus Christi North Beach Facility. The second phase will increase capacity by as much 65,000 b/d. Phase 1 should be complete in the third quarter of 2014.
Earlier this year we wrote a series of stories about the federal government’s efforts to regulate the training of commercial motor vehicle (CMV) operators. For 28 years, the Federal Motor Carrier Safety Administration (FMCSA) has attempted to standardize training requirements for entry level drivers (ELDT).
There have been several heated conversations from trucking industry leaders, educators and safety advocates on what is a sufficient standard that will actually keep our roadways safer. Everyone agrees that implementing something to reduce accidents would be a good thing, but there are many opinions on how it should be done. Suggestions have ranged from enforcing stricter testing procedures by demonstrating performance based standards to an actual set number of hours that an individual must complete before obtaining their commercial driver’s license (CDL), as well as where and how the training can be performed.
On September 19th, 2013 the proposed federal rule was withdrawn because of over 700 comments sent to FMCSA stating several major concerns on how the ruling would negatively affect the industry. Protestors stated that the proposed ruling would do little to improve safety as requested by the federal courts.
The proposed rule may not have become law but the issue is far from dead. So here we go again. FMCSA is going back to the drawing board to research how safety can be measured among all drivers and what ruling can they implement to ensure the roadways will be safer.
[ic-r]The Eagle Ford Shale in South Texas has energized the Texas economy and provided many high paying jobs. The majority of them require a CDL. To get one you have to take knowledge and skills tests. To pass them requires a little preparation. Individuals seeking employment in the Eagle Ford are preparing for their CDL tests with training at truck driving schools at their local colleges, private for-profit schools or in company training programs. Some use self-guided study paired with borrowing Uncle John’s truck.
You may find a school or company offering “training” that seems quick and easy. You’ll be given copies of test questions from DPS, told to study them and get your CDL permit. Then you will be allowed to practice with a truck before scheduling your skills test at DPS. Sounds like a bargain and a fast track to starting your driving career but you should think twice. That is not training, and it could get you in trouble very quickly. You may find that inadequate training leads to ruining your driving record, wrecking your Compliance, Safety, Accountability (CSA) score and preventing employment with good carriers that have strict standards.
Getting a CDL is just a start. Licensed CMV drivers have a huge responsibility. There’s much more to becoming a professional driver than just studying the test questions, meeting the basic requirements and squeaking through a driving test. You might think you could learn anything else you need through trial and error, but those errors could be deadly to your fellow drivers, even to you.
FMCSA may have withdrawn the ELT proposed rule at this time but don't let that stop you from making sure you have all the information to succeed. Have respect for yourself and your career. Make an investment in thorough training. You want to be doing this for a long time.
Kinder Morgan announced another expansion in the Eagle Ford. The company will spend $74 million to expand the Kinder Morgan Crude & Condensate (KMCC) pipeline 18 miles from the DeWitt Station into Gonzales County.
The latest expansion isn't included on the map, but it will extend north from the point near Cuero, TX.
The 24-inch pipeline will have capacity of 300,000 b/d. The expansion will connect with a new facility in Gonzales County that will have 300,000 bbls of storage, a pump station, and truck offloading facilities.
Kinder Morgan Expanding Eagle Ford System Into Karnes County
The oil will move through the Kinder Morgan system to delivery points in the Houston Ship Channel or the Phillips 66 Sweeney Refinery in Brazoria County, TX.
“We are pleased to enter this long-term arrangement to move more Eagle Ford Shale product to the Houston Ship Channel and surrounding areas and once again provide much needed optionality to Eagle Ford producers and Houston market consumers.”
The expansion is supported by commitment from a major Eagle Ford operator. My first thought is it is probably EOG Resources (comment below if you agree or not). There are other operators in the area, but none come to mind that could make a commitment large enough to support development of a 300,000 b/d pipeline.
Not counting what has already been invested, Kinder Morgan has a total of $900 million in planned investments in the Eagle Ford.
Read the full press release at KinderMorgan.com
Swift Energy has seen its well costs fall and its initial production (IP) rates rise in 2013. Across two areas in South Texas, the company's IP rates are up 15% or more and drilling and completion costs are down 13% or more.
That's exactly what operators want to see and its why several companies are selling assets to fund accelerated development programs in the Eagle Ford.
Swift is selling assets in Louisiana and just last week Forest Oil sold assets in the Panhandle to fund its Eagle Ford operations.
In the past year, Swift has driven drilling costs down from more than $4 million to a little more than $3 million. Simultaneously, completion costs have been falling. Since early 2011, completion costs have fallen from $5.3 million to $3.6 million.
Together, those two metrics equate to a savings of 13% or more from last year at this time for the average Eagle Ford well Swift drills and completes.
Most companies have not released their plans for 2014, but we're starting to hear several major operators will be increasing activity next year. Stories like this one from Swift and $100 oil make the Eagle Ford more attractive than ever.
The Eagle Ford dominates the latest list of the top oil & gas producing counties in Texas. The Eagle Ford contributes the majority of production in the top three oil producing counties and five of the top 10 producers in the state.
Texas oil production has grown approximately 20% since this time last year. I don't think anyone can deny we're in the midst of an oil boom
Preliminary data for July from the Texas Railroad Commission shows the top counties produced the following:
Dimmit County is the only county in the area to make the top ten gas producing areas as well. Also, it's important to remember the numbers are preliminary. Production figures are often revised upwards by as much as 10% in later months.
Read the full monthly press release at rrc.state.tx.us
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