Eagle Ford Rig Count Decreases by Three to 232

January 26, 2015 Elizabeth Alford

The Eagle Ford Shale rig count decreased by three to 232 rigs running across our coverage area by the end of last week.

In recent Eagle Ford news, the U.S Geological Society registered close to a dozen quakes in the region ranging in intensity from a 2.6-3.7 on the richter scale within a 36 hour period. Earthquakes in Texas have been on the rise in recent years, causing many to make a connection between increased seismic activity and the fracking throughout the state.

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

Eagle Ford Rig Count Decreases to 235

January 22, 2015 Elizabeth Alford

Matador Pulling Two Rigs in the Eagle Ford in 2015 — Eagle ford rig counts

The Eagle Ford rig count decreased by 13 this week ending at 235, adding to the sharp decline seen in the region as we lost 26 active rigs in the last four weeks.

WTI crude prices have decreased by ~$9.59 since December 19th, trading at $55.99/bbl on Monday morning. As oil prices continue to drop, reports of deeper budget cuts and layoffs are now daily news.

Related: Energy Giants Announce Layoffs

Eagle Ford and Bakken are both experiencing a decrease in rig count, but other regions are also seeing a decline. The U.S. rig count decreased to 1,676 rigs running by the end of last week with a total of 310 rigs targeting natural gas (down 28 from December) and 1,366 targeting oil in the U.S. (down 170 since December).

What is the Rig Count?

The Bakken Shale Rig Count is an index of the total number of oil & gas drilling rigs running across Montana and North Dakota. The rigs referred to in this article are for ALL drilling reported by Baker Hughes and not solely wells targeting the Bakken formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count.

Urban Drilling Ordinance Hearing

January 21, 2015 Elizabeth Alford

Are you a mineral or royalty owner in the College Station area? If so, you’ll want to mark your calendar for an important city council meeting tomorrow and consider signing up to voice your opinions.

The College Station City Council will be considering an Urban Drilling Ordinance on January 22nd and the public is invited to attend and give comments. Speakers may present a 3 minute presentation.

For many royalty owners, restrictive ordinances such as this one prevent responsible oil and gas development and infringe on private property rights. Most concerning is the 1,500-foot setback requirement contained in the ordinance. Concerned owners assert that this requirement is unnecessary intervention because research confirms that 600-foot setbacks are enough to protect public health. If this is true, then this ordinance would amount to a de facto ban, if passed. These owners are calling for the community to base decisions about oil and natural gas activity on sound science.

College Station City Council Meeting

City Hall - Council Chambers 1101 Texas Avenue S., College Station, Texas

Thursday, January 22, 2015, 5:30 - 7 p.m.

agenda item #14-897

More on Eagle Ford restrictions: Fracking Bans in Texas

Wastewater Disposal to Continue in Texas

January 19, 2015 Elizabeth Alford

Eagle Ford Disposal Well Map — Eagle Ford Injection Wells

Landowner rights in Eagle Ford took another hit last week when Judge Russell Wilson denied a request to stop the further development of an underground wastewater disposal facility.

Sable Environmental, LLC obtained a permit from the Texas Railroad Commission (TRC) to store 20,000-25,000 barrels of wastewater underground in Karnes County, and the decision immediately drew fire from local landowners who are fearful that the water will contaminate their property. After banding together, they filed a lawsuit seeking an injunction to stop the company from proceeding. Judge Wilson denied the request on January 14th, choosing instead to wait on a decision in a similar case before the Texas Supreme Court that will set a precedent for future cases of this nature.

“As the Eagle Ford Shale continues its development, I think that we are going to see more and more instances in which the rights of the property owners are going to collide with oil and gas industry’s operations. While property owners should consider the needs of the industry in their decision making, the industry needs to respect the rights that landowners have in their property when conducting their operations. Finding that balance is going to be crucial for the long-term success of the Eagle Ford Shale.”

— Attorney, Clinton Butler

Wasterwater disposal has become a hot topic as hydraulic fracturing has increased over the last few years. After drilling, the wastewater is cleaned and then pumped deep into injection wells. The potential risks of this practice are still unknown but are commonly connected to increased earthquakes, water contamination and danger to the ecosystem.

Related: Eagle Ford Disposal Wells

Halcón Plans to Reduce Rigs for 2015

January 15, 2015 Elizabeth Alford

Halcón Resources will reduce its rig count in the El Halcón in East Texas from three to one, according to the company’s press release on January 8th. This is the second round of cuts for the Houston - based company in less than two months with executives citing the continued decline in oil prices as the reason for the move.

Halcón's spending for 2015 is projected at between $375 - 425 million, representing a steep decline from 2014 numbers of $950 million. Even with these drastic cuts, the company anticipates that production in 2015 will increase to an average of 40,000-45,000 barrels per day. This is compared to 43,554 b/d in the third quarter of 2014.

Read here for more about El Halcón

“Our plan is to deploy capital to assets where results indicate EURs and initial production rates higher than our published type curves. We are comfortable with our current liquidity position and we expect our strong hedge portfolio to continue generating income well into 2016. Although we are significantly hedged, the continued weakness in crude oil prices, combined with elevated service costs, calls for conservative planning. We expect to see these costs come down dramatically during 2015.”

— Halcon CEO, Floyd Wilson

Read the full report at halconresources.com.

Eagle Ford companies are still hiring. For more information go to jobs.eaglefordshale.com