Texas Outranks OPEC Nations

June 11, 2015 Elizabeth Alford

The latest figures from the American Petroleum Institute (API) reveal that many individual states now outstrip whole countries when it comes to natural gas production. And, not surprisingly, Texas is on top.

Texas leads the world by producing 18.81 billion cubic feet of natural gas per day, more than more than any member of OPEC. Louisiana, Pennsylvania, Wyoming, Oklahoma and Colorado all rank among the top 20 energy-producing nations in the world.

The Lone Star State also leads in crude oil production and is ranked 8th in overall global production. The Eagle Ford Shale alone accounts for more than 1.5-million barrels of crude oil per day.

“This is what energy security looks like,” Tracee Bentley, head of the Colorado Petroleum Council, said. “Thanks to innovations in hydraulic fracturing and horizontal drilling, Colorado now outpaces seven of 12 OPEC nations in natural gas production.”

OPEC’s announcement last Friday that it will stick with its policy to produce oil at a high rate, has not intimidated American shale producers.

Eagle Ford Shale Midstream Sold

June 10, 2015 Elizabeth Alford

Enterprise Products Partners (EPD) will acquire Eagle Ford Shale (EFS) Midstream for a total price of $2.15 billion.

The deal announced this week includes an agreement with Pioneer Natural Resources and Reliance Industries who each own shares in EFS and is expected to be closed in the third quarter this year. The purchase price will be split into two installments, with $1.15 billion to be paid at the transaction closure. The balance of $1 billion will be paid within 12 months of the closing date.

“This ‘bolt on’ acquisition extends our integrated system deeper into the NGL and condensate rich areas of the Eagle Ford, which will provide us with the ability to offer services to additional producers and increase volumes on our system.”

— Michael A. Creel, Chief Executive Officer of Enterprise

EFS Midstream designs, constructs, owns and operates facilities that provide gas gathering, treating, condensate stabilization, and transportation services for operations in the Eagle Ford Shale and offers nearly 460 miles of natural gas gathering pipelines and ten central gathering plants. The firm maintains 119 thousand barrels of condensate stabilization capacity per day and can treat 780 million ft3 of natural gas daily.

Karnes County Accident Worst in 20 Years

June 9, 2015 Elizabeth Alford

An accident at an Encana Corp well last month is still wreaking havoc on a small area of Karnes County.

Related: Eagle Ford Well Explodes

In what the county sheriff is calling the worst environmental disaster in more than 20 years, the well blow-out displaced numerous families and left trees, fields, roads and houses covered in oil.

The clean up effort is proving costly and has included resurfacing more than half a mile of roadway of FM 792. Encana is also making a full environmental assessment of the area including bringing in veterinarians, soil testers and arborists.

“More than two weeks after the accident, a line still separates green and lush vegetation nurtured by recent rains from brown trees and grass that were soaked by condensate and natural gas. Leaves on the trees and bushes are black and remain coated with a slick oily substance.”

— The San Antonio Tribune

Encana spokesman Doug Hock confirmed that there are five households that are still not able to return home and another couple of unoccupied homes that are not yet accessible.

Texas Earthquakes: The Verdict is Still Out

June 8, 2015 Elizabeth Alford

The Texas Railroad Commission is publicly questioning scientific evidence that links fracking to earthquakes.

Last Friday scientists met with Railroad Commissioner Ryan Sitton and other officials for a technical discussion about the science behind a recent study that links fracking and earthquakes.

The peer reviewed study led by researchers at SMU concluded that earthquakes in the north Texas communities of Azle and Reno were likely triggered by the wastewater disposal methods used by fracking companies. This common process is to inject the saltwater waste through high pressure methods deep into storage facilities underground.

During the meeting, SMU geophysics professor Heather DeShon reaffirmed the findings stating that "You only need a pressure change of 1.5 PSI to trigger an earthquake on a critically-stressed fault line,"

During the meeting, the scientists also asked Commissioner Ryan Sitton for a list of things that would be helpful for further studies including:

Requiring disposal well operators to provide bottom hole measurements would be very helpful in their research.
Getting saltwater disposal volume and pressure data on either a monthly or quarterly basis instead of yearly

“I have not reached the conclusion that oil and gas activity is the causal factor,” said Craig Pearson, the Railroad Commission’s staff seismologist. “While we remain concerned about seismic activity in the state, we still haven’t had a hearing where we’ve had a definite case made that a specific operator is associated with any specific earthquake activity.”

Eagle Ford Oil Rigs Fall Below 100

June 6, 2015 Elizabeth Alford

Eagle Ford Rig Count — Eagle Ford Rigs Fall This Week

The Eagle Ford Shale rig count fell 11 this week to 114 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, the Texas Railroad Commission released its latest statistics showing the state’s oil and gas production continues to impress, with the Eagle Ford leading the way.

Eagle Ford Oil & Gas Rigs

Natural gas rigs in the Eagle Ford fell by seven to 19 this week and natural gas prices traded at $2.59/mmbtu, a decrease of $.06 from the previous week.

The oil rig count decreased by seven to 95 with WTI oil prices continuing to inch upwards this week to $59.13, a decrease of $1.08. A total of 112 rigs are drilling horizontal wells, zero rigs are drilling directional wells, and two are vertical rigs. Karnes county leads Eagle Ford drilling this week running 20 rigs, while LaSalle (18) and Webb (17) following closely. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by Count

Eagle Ford Shale News

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Repsol Moves into the Eagle Ford

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.