Are Eagle Ford Oil Field Workers Safe?

March 11, 2014 Kirk Eggleston

In 2012, a UTSA study found the Eagle Ford Shale generated 116,000 full-time jobs, and provided an economic impact of $61 billion across a 20-county area in Texas.

It’s impossible to deny the significant role the Eagle Ford Shale has played in the state’s good economic fortune, but there has also been a downside to its’ development.

In a late February 2014 article, the Houston Chronicle reported on a spike in oilfield injuries and fatalities that have occurred since the beginning of the boom in 2007.

Fatalities and injuries are the highest that they’ve been in years. 65 oil and gas workers were killed on the job in 2012 alone in Texas. That’s up 50% over 2011 according to government statistics.

Eagle Ford Oilfield Worker Claims – 2008 - 2012

Below is a list of five Eagle Ford companies that have paid out claims to workers who missed work because they suffered injures or work-related illnesses:

The information represents claims filed between 2008 – 2012

Pioneer Energy Services Corp. (includes Pioneer Drilling) – 80 claims; average paid per claim - $27,764.38
Chesapeake Energy Corp. – 66 claims; average paid per claim – $23,738.93
Murphy Oil Corp. – 65 claims; average paid per claim - $7,917.02
Clayton Williams Energy Inc. – 54 claims; average paid per claim - $10,272.65
Forest Oil Corp. – 40 claims; average paid per claim - $25,657.82

According to the UTSA study, in 2022, the Eagle Ford Shale will support 127,000 jobs. That figure represents sustainable, continued job growth for the region, but at what cost? Hopefully, the continued development of the play will not also be tied to an upward trend in injuries and fatalities among oilfield workers.

To read more, visit chron.com

Eagle Ford Rig Count - 267 - Devon Eagle Ford Budget $1.1 Billion in 2014

March 10, 2014 Kirk Eggleston

The Eagle Ford Shale rig count increased by 1 to 267 rigs running last week.

In recent news, Devon Energy plans on investing $1.1 billion in the Eagle Ford in 2014 and will drill more than 200 wells. The company estimates average net production through October, 2014, of 70,000 – 80,000 boe/d in the play.

The U.S. rig count increased by 23 to 1,792 running last week. A total of 345 rigs are targeting natural gas (10 more than last week) and 1,443 are targeting oil in the U.S. (13 more than last week). The remainder are drilling service wells (e.g. disposal wells, injection wells, etc.). 864or ~48% of rigs active in the U.S. are running in Texas.

Baker Hughes rig count is quoted here. Baker Hughes also releases its own Eagle Ford Rig Count that covers the 14 core counties (222 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

The natural gas rig count increased by seven rigs to 43 running last week. Average rig counts for natural gas production in 2012 were around 82 and then dropped to around 41 in 2013. Last week, the price of natural gas stayed flat at ~$4.60/mmbtu on Friday afternoon.

The oil rig count decreased by 6 to 224 rigs running. WTI oil prices stayed relatively flat, trading at ~$100/bbl by the end of the week. Eagle Ford light crude traded at $99.00/bbl on March 7th.

A total of 235 rigs are drilling horizontal wells, 19 rigs are drilling directional wells, and 13 rigs are drilling true vertical wells. Karnes, La Salle, Dimmit and McMullen counties each have at minimum 26 rigs running. Karnes County has the highest rig count this week at 35. See the full list below in the Eagle Ford Shale Drilling by County:

South Texas Oil & Gas News:

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

Eagle Ford Shale Drilling by Count

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:

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

Eagle Ford Billionaires | Jeff Hildebrand Leads the Pack - Net Worth of $5.5 Billion

March 7, 2014 Kirk Eggleston

This week, Forbes released its rankings of the richest people on the planet, and the list included some oil and gas industry billionaires that have made their fortune in the Eagle Ford Shale.

In 2013, EagleFordShale.com released its own Eagle Ford billionaires list, which was led by Jeff Hildebrand and Dan Harrison.

Hilcorp CEO, Jeff Hildebrand, still leads the pack in his ranking of Eagle Ford billionaires this year. His net worth is unchanged at $5.5 billion.

In 2014, there's a new name to be added to the list - George Bishop, 77, of The Woodlands, TX. Bishop is ranked by Forbes at No. 446, with $3.5 billion in net worth. Forbes estimates Bishop will clear $1.5 billion from the $6 billion sale of Eagle Ford shale assets to Devon Energy. GeoSouthern got into the Eagle Ford Shale play early.

Eagle Ford Billionaire Rankings for 2014

Jeff Hildebrand (Hilcorp) – Net worth $5.5 billion – Estimated to have made $2.5 billion in the Eagle Ford
George Bishop (GeoSouthern) - Net worth - $3.5 billion - Estimated to have made $1.5 billion in sale of Eagle Ford assets to Devon Energy
Dan Harrison (Acreage/Land Owner) – Net worth $1.25 billion – Estimated to have made $1 billion leasing his ranch in the Eagle Ford
Rodney Lewis (Lewis Energy) – Net worth $2.4 billion – Lewis Energy operates over $5 billion worth of Eagle Ford acreage

Please share your throughts in the comments below. Is there anyone we should have included?

See the full list of billionaires at Forbes.com

Devon Energy Eagle Ford Spending $1.1 Billion in 2014

March 6, 2014 Kirk Eggleston

Devon Energy plans on investing $1.1 billion in the Eagle Ford in 2014 and will drill more than 200 wells. The company estimates average net production through October, 2014, of 70,000 - 80,000 boe/d in the play.

At the end of February 2014, the company closed on its $6 billion Eagle Ford acreage acquisition from GeoSouthern. The deal included 82,000 net acres in DeWitt and Lavaca Counties, and makes Devon a significant player in the Eagle Ford Shale.

“Our Eagle Ford acquisition is one of several bold steps we have recently taken to upgrade our portfolio and improve the growth trajectory and profitability of our business.”

— Devon CEO John Richels

Devon estimates peak average production in the Eagle Ford of ~140,000 boe/d over the next several years. That's not an unlikely target based on current production in the acquired acreage of 53,000 boe/d in 2013 and an estimated ~1,200 undrilled locations.

According to the company, the Eagle Ford development program in 2014 will be self-funding and is expected to start generating free cash flow beginning in 2015. Risked recoverable resources in the Eagle Ford are estimated at 400 million boe, of which more than 60% are proved reserves.

Halcón Resources Will Spend 40% of its 2014 Budget in the Eagle Ford - ~$380 Million

March 5, 2014 Kirk Eggleston

Halcon Resource's Eagle Ford Acreage Map

Halcón plans on spending ~$380 million in its East Texas Eagle Ford acreage (El Halcón) in 2014. That's approximately 40% of the company's budget.

At the end of February, 2014, there were 45 Eagle Ford wells producing, 10 wells completing or waiting on completion, and 4 wells being drilled.

Halcón currently has working interests in approximately 100,000 net acres tied to prospective drilling in the Eagle Ford formation in East Texas. The Company plans to operate an average of 3 rigs and spud 40 to 50 gross operated wells in 2014.

“Our focus in 2014 is on drilling wells in the sweet spots of our de-risked acreage in the Williston Basin and El Halcón. We will also begin drilling wells on our newly acquired acreage located in what we believe to be the core of theTuscaloosa Marine Shale. We are primed for growth and have a deep drilling inventory. We are committed to maintaining capital discipline and dedicated to improving capital efficiency.”

— Floyd Wilson, CEO

In 2014, the company plans to drill wells with an average lateral length of 7,500 feet, as tests continue to determine the most efficient completion design. In 2013, the company found there was a direct correlation between lateral length to EUR for wells completed with a sufficient volume of proppant.

Halcón's Fourth-Quarter Eagle Ford Production

Halcón operated an average of four rigs in El Halcón during the fourth quarter, spudded 13 wells and put 9 wells online. The company produced an average of 7,138 boe/d in El Halcón during the fourth quarter. That's an increase of 43% over the third-quarter of 2013.

Halcón Eagle Ford Highlights

~$380 million will be spent in Halcón's East Texas Eagle Ford acreage (El Halcón) in 2014
Halcón plans to operate an average of 3 rigs and spud 40 to 50 gross operated wells in 2014 in El Halcón
43% increase in Eagle Ford production to 7,138 boe/d in the fourth-quarter of 2013
At the end of February, 2014, 45 Eagle Ford wells were producing, 10 wells were being completed or waiting on completion and 4 wells were being drilled