Oil Export Ban: No Fans in Texas

July 9, 2015 Elizabeth Alford

Japan Eyes Eagle Ford Natural Gas — Oil Exports Bad for Eagle Ford

Railroad Commission Chairman David Porter joined Governor Abbott and other Texas legislators to urge the federal government to lift the ban on oil exports.

At a hearing before the U.S. Agriculture Committee this week, Porter testified to the immediate need for Congress to lift the ban on the archaic and outdated policy and made the case that keeping the 40 year old law is bad for Texas and the whole economy.

“Technological advancements have allowed U.S. producers to tap new sources of oil and natural gas from shale formations, including from the Permian Basin and Eagle Ford in Texas. Development of our shale resources has been a game-changer and presents the US with the opportunity to be the world’s largest producer of both oil and natural gas.”

— David Porter

Highlights of Porter’s testimony to lift export ban:

Increase production resulting in new jobs, economic growth, increased state and federal revenue. U.S. GDP would increase by $38.1 billion in 2020 and every state and congressional district would also benefit from increased oil production due to the expansive supply chain it supports.
Consumers would save money at the pump
Enhance free trade and lower the U.S. trade deficit
Strengthen our national security

Read the full testimony at rrc.state.tx.us

Texas Railroad Commission Available 24/7

July 8, 2015 Elizabeth Alford

The Texas Railroad Commission (RRC) added a new toll free number this week to insure they are easily accessible to the public and first responders when emergencies happen in the oilfield.

The RRC is responsible to regulate the exploration, production, and transportation of oil and natural gas in Texas, which includes investigating accidents and inspecting pipelines. Companies contact the RCC when they have any environmental emergency, discharge, spill, or air release from oil and gas facilities, pipelines, or alternative fuels.

During emergencies, the RRC works closely with first responders to provide support with a staff that is on call 24 hours a day, seven days a week. The agency added the new number (844-773-0305) to streamline operations and improve efficiency.

“Public safety and the protection of our natural resources are our highest priority at the Commission. While we never want to see an emergency situation arise, our staff is on call and ready to support emergency responders including providing information and overseeing any related cleanup efforts.”

— Commissioner, Christi Craddick

The Railroad Commission also offers other resources on its website to help companies stay on top of safety concerns including emergency planning forms, safety FAQs and training.

Texas Drilling Still Sluggish

July 7, 2015 Elizabeth Alford

The Texas Railroad Commission (RRC) released its monthly oil and gas statistics last week showing a continued slowdown for drilling across Texas. The Eagle Ford remained a bright spot for permits and production amidst sluggish numbers state-wide.

Drilling Permits

In May, the RRC issued a total of 917 original drilling permits, a huge decline from the 2,389 that were issued during this time period in 2014.

The May total included 778 permits to drill new oil and gas wells and of that, 143 went to the San Antonio area, which is in the heart of the Eagle Ford. 222 permits were issued for oil, 55 for gas and 583 for oil and gas.

Oil & Gas Completions

The total year-to-date well completions for 2015 are 9,832 down from 13,729 recorded during the same period in 2014.

May 2015: 1,299 oil, 201 gas, 72 injection and nine other

March 2014: 2,057 oil, 323 gas, 78 injection and 12 other

Production

Production remains high with preliminary figures for April 2015 at 69,595,733 barrels, up from 61,303,820 barrels reported during April 2014. The Eagle Ford continues to outproduce other Texas areas in oil production with Karnes, La Salle and DeWitt counties maintaining the lead. Following are top oil and gas producing counties in April, 2015 according to the RCC.

COUNTY – CRUDE OIL (BBLS)

KARNES – 6,503,269
LA SALLE – 4,481,444
DEWITT – 4,290,323
MCMULLEN – 3,143,357
ANDREWS – 2,969,079
UPTON – 2,919,211
MARTIN – 2,875,795
GONZALES – 2,874,191
MIDLAND – 2,719,874
REEVES – 2,223,136

Eagle Ford Hotels: Down But Not Out

July 6, 2015 Elizabeth Alford

The temporary housing market for oilfield workers in the Eagle Ford is hanging on despite slower demand.

Relates: Will Bakken Man Camps Disappear?

At the peak of the shale boom, Eagle Ford hotels, lodges and man camps could barely keep up with demand, as workers flooded the region for work and needed a place to stay. According to the Texas Comptroller of Public Accounts, temporary housing in the Eagle Ford increased more than 270 percent to 7,860 rooms since 2008.

At the height of the boom, many of these housing providers were able to set their prices and sometimes, even turn away customers. But today, its a different story. Producers have scaled back operations as they wait out the current pricing environment, which means fewer workers in the field that need housing. Supply has outstripped demand and rooms that once rented for $300 a night, may now only cost $75.

Things are hardly bleak, however. New numbers by the Comptroller's Office, show lodging providers in the Eagle Ford took in $63 million in revenue in the first quarter of the year, down 11 percent from the previous quarter, but a $5.1 million increase over 2014.

One company, InVision Housing Solutions LLC, is optimistic about the future and is working to raise $5 million in capital to build new oilfield worker housing at the Double C Resort just outside Carrizo Springs, Texas.

Michael Spencer, head of InVision, told San Antonio Business Journal that research shows that Carrizo Springs and surrounding Dimmit County remain the No. 1 drilling site in the Eagle Ford Shale. "

“(Operators) drilled 4,000 to 5,000 wells around here,” Spencer said. “They have to keep taking care of them.”

Eagle Ford Rigs Increase to 120

July 3, 2015 Elizabeth Alford

Eagle Ford Rig Count — Eagle Ford Rigs Increase

The Eagle Ford Shale rig count rose by three, ending the week at 120 rigs running across our coverage area by midday Thursday.

In recent Eagle Ford news, the Texas Railroad Commission issued new policies to protect Eagle Ford pipeline inspectors from drug smugglers and illegal immigrants.

The U.S. rig count increased slightly, ending with 862 rigs running by midday Friday. A total of 219 rigs were targeting natural gas (nine less than the previous week) and 640 were targeting oil in the U.S. (12 more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)363 of the rigs active in the U.S. were running in Texas.

Baker Hughes reports its own Eagle Ford Rig Count that covers the 14 core counties. 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

Natural gas rigs in the Eagle Ford remained flat at 26 this week and natural gas prices traded at $2.81/mmbtu, an decrease of $.05 from the previous week.

The oil rig count increased by three to 94 as WTI oil prices dropped to $56.72, a decrease of $2.91. A total of 110 rigs are drilling horizontal wells, one rig are drilling directional wells, and nine are vertical rigs. Karnes leads development this week running 21 rigs, with LaSalle (20), DeWitt (16) and Webb (16) follow closely. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

Eagle Ford Shale News

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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.