Eagle Ford Study Shows Significant Increase in Pollution Through 2018

Eagle Ford Satellite Image
Eagle Ford Satellite Image

The Eagle Ford Shale's economic impact has been felt across the state, particularly in South Texas, but a recent study shows that it may be at a cost to the environment.

In early April 2014, the Alamo Area Council of Governments (AACOG), released data correlating rising Eagle Ford production with an increase in air pollutants.

By 2018, AACOG predicts that unhealthy levels of ozone could have an impact on South Texas as volatile organic compounds (VOCs) rise as much as 281% over 2012 levels. Nitrogen Oxide (NOx) levels are also expected to rise by 2018, but not as drastically. Ground level ozone (i.e. smog) is produced when VOCs and NOx react to sunlight, especially during the summer.

The majority of NOx emissions in 2012 were emitted by drilling rigs and well hydraulic pump engines (47%). By 2018, these sources are expected to account for only 9% of these emissions as engines are replaced with models that meet Tier 4 standards*. Compressors and mid-stream sources accounted for 39% of NOx emissions in 2012, but this number is expected to rise through 2018.

“The health effects associated with ozone exposure include respiratory health problems ranging from decreased lung function and aggravated asthma to increased emergency department visits, hospital admissions and premature death. The environmental effects associated with seasonal exposure to ground-level ozone include adverse effects on sensitive vegetation, forests, and ecosystems.”
— EPA (Environmental Protection Agency)

The report mentioned the San Antonio area, which is the largest city in the Eagle Ford's wake, has recorded ozone violations since August 2012 in excess of the EPA's 2008 ozone standard. That puts the region on the brink of a potential non-attainment designation, which could result in federally mandated Clean Air Act sanctions. Beyond the San Antonio area, the study looked at 25-core Eagle Ford counties, including Karnes, Webb, DeWitt and Dimmit Counties. According to the report, all 25 Eagle Ford counties are currently in attainment of all air quality regulatory standards.

Read the full report

*Tier 4 is comprised of two significant stages for different engine horsepower ratings. The first stage is a significant reduction of particulate matter (PM) and NOx , and the second stage is a further but substantial reduction of NOx only emissions.

ConocoPhillips Raises Eagle Ford Reserve Estimates By 39% to 2.5 Billion BOE

ConocoPhillips' Eagle Ford Geologic Map
ConocoPhillips' Eagle Ford Geologic Map

ConocoPhillips increased its Eagle Ford reserve estimates in early April 2014 by 39% from 1.8 billion to 2.5 billion bbls of oil in place. Company officials say production is expected to exceed 250,000 boe/d in the Eagle Ford by 2017. That's nearly 100,000 more BOE than the company's target goal at the end of 2013.

Read more: Conoco Phillips' Eagle Ford Production Up 58% to 141,000 boe/d in Q4 2013

“ConocoPhillips’ wells in the Eagle Ford have the highest oil rates per well and are leading the industry in value. This is attributable not only to the fact that we are in the best part of the play, but also to our relentless focus on technical innovation and drilling and completion cost efficiencies,” Lance said. “We are applying these benefits and efficiencies across our unconventional portfolio in the Bakken, Permian, Niobrara, Canada, and outside of North America.”
— ConocoPhillips CEO, Ryan Lance

ConocoPhillips' Eagle Ford acreage is in a prime part of the Eagle Ford, with much of it centered in Karnes and Live Oak counties. The company has 221 M net acres across its' Eagle Ford portfolio, with more than 3,000 identified drilling locations. ConocoPhillips' has a 96% average operated working interest in its Eagle Ford wells.

In 2014, ConcoPhillips plans to spend $4.3 billion on the Bakken, Eagle Ford and Niobrara Shale. Drilling costs and completion costs have decreased by 37% and 41% consecutively since 2010 in the Eagle Ford.

ConocoPhillips' Highlights

  • ConocoPhillips pushes Eagle Ford reserves estimates up 39% to 2.5 billion bbls of oil in place
  • ConocoPhillips predicts 250,000 boe/d by 2017
  • More than 3,000 prospective drilling locations identified
  • Drilling and completion costs down 37% and 41% consecutively

Read more at conocophillips.com

Eagle Ford Rig Count - 267 - Horizon Energy Signs Lease Option in Webb County, TX

Webb County Eagle Ford Shale
Webb County Eagle Ford Shale

The Eagle Ford Shale rig count decreased by one to 267 rigs running across our coverage area by the end of last week.

In recent Eagle Ford news, Horizon Energy Corporation announced in early April that it signed an option agreement for an oil and gas lease in Webb County, TX. The land consists of 1,340 acres located close to Mirando City.

Read more: Horizon Energy Corporation Signs Lease Option Agreement for Eagle Ford Acreage

The U.S. rig count increased by 13 to 1831 rigs running by the end of last week. A total of 310 rigs are targeting natural gas (6 less than last week) and 1,517 are targeting oil in the U.S. (19 more than last week). The remainder are drilling service wells (e.g. disposal wells, injection wells, etc.). 884or ~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 (220 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 remained flat at 16 rigs running by the end of last week. Average rig counts for natural gas production in 2012 were around 82 and then dropped to around 41 in 2013. Natural gas prices stayed relatively flat from last week at $4.62/mmbtu on Friday afternoon.

The oil rig count decreased by 1 to 251 rigs running by the end of last week. WTI oil prices increased, trading at $103.25/bbl on Friday afternoon. Eagle Ford light crude traded at $100.25/bbl on April 11th.

A total of 230 rigs are drilling horizontal wells, 23 rigs are drilling directional wells, and 14 rigs are drilling vertical wells. Karnes, La Salle, Dimmit, McMullen and Webb counties each have at minimum 23 rigs running. Karnes County has the highest rig count this week at 30. 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.

Houston Engineering Firm Opens Eagle Ford Branch Office in Webb County

S&B Infrastructure Projects
S&B Infrastructure Projects

Houston-based engineering firm S&B Infrastructure, Ltd. (S&BI) has opened a new branch office in Laredo, TX (Webb County) to serve the Eagle Ford Shale. The company plans on expanding engineering and construction phase management services throughout the play, focusing on infrastructure improvements for Eagle Ford counties. According to S&BI officials, county governments are a primary focus for business development.

“S&BI recognizes the importance of having a presence in Laredo and Webb County, which is the sixth largest county in our great state.”
— Harold “JR” Reddish, PE, President and CEO of S&BI

The Laredo office is currently manned by a three-person staff. According to Senior VP of S&BI Daniel Rios, the company is currently working on infrastructure improvements in La Salle County. In the second-quarter of 2012, quarterly taxable spending in La Salle County was $34,540,083. That's an increase of 536% since 2009. With the continuous and progressive development over the past five years in the Eagle Ford, the revenue streams for counties covering the play are increasing. As these counties' coffers continue to fill-up, look for more engineering firms like S&BI to target these local governments for their infrastructure improvements.

S&BI has provided planning, design, and construction phase services for over $6.6 billion in infrastructure projects since 1994. The company has other branch offices across Texas and Louisiana.

Read more at sbinfra.com

U.S. Energy Corp. Provides Operations Update For Buda Limestone Wells

U.S. Energy Corp. Oil & Gas Project Area Map
U.S. Energy Corp. Oil & Gas Project Area Map

This week, U.S Energy Corp. provided its operations update for several of it's Zavala and Dimmit County wells targeting the Buda Limestone formation, which lies just underneath the Eagle Ford Shale. The Beeler #6H well, located in the company's Booth-Tortuga acreage block, was completed in March 2014, and had a peak early 24-hour flow back rate of 1,185 boe/d, with a 91% oil yield. The company has a 30% working interest and a 22.5% net revenue interest in 12,457 acres of the Booth-Tortuga acreage block. Contango Oil & Gas Company is the operator.

U.S. Energy Corp. also participates with U.S. Enercorp in approximately 4,243 gross (636 net) acres in the Big Wells acreage block in Dimmit County, TX. The leasehold is contiguous to the southwestern portion of the Booth-Tortuga acreage block.

“Having participated in six Buda wells with Contango and two with U.S. Enercorp., we are now beginning to gain a broader understanding of the extent of the play as well as the production response rates. Looking forward, we remain optimistic about the overall potential of the Booth-Tortuga and Big Wells prospects yet we still have much more drilling to do to fully understand the extent of the natural fractures in the region. Additionally, we believe that the potential exists to enhance the production profiles of our wells through down hole stimulation as warranted.”
— U.S. Energy Corp. CEO, Keith Larsen

U.S. Energy Corp. Buda Limestone Well Spud Dates

  • Beeler #8H (Contango, Operator)

Spud on 2.06.14 - peak early 24-hour flow back rate of 886 boe/d; 30-day average production of 347 boe/d

  • Willerson #2H (U.S. Enercorp, Operator)

Spud on 2.03.14 - peak early 24-hour flow back rate of 634 boe/d

  • Beeler #6H (Contango, Operator)

Spud on 2.10.14 - peak early 24-hour flow back rate of 1,185 boe/d

  • Beeler #5H ST (Contango, Operator) & Beeler Unit A #9H (Contango, Operator)

Spud on 3.25.14 and 3.26.14 respectively. Currently these wells are being drilled to their target depths.

Read more at usnrg.com