Eagle Ford Rig Count Remains Steady

December 23, 2015 Elizabeth Alford

Due to the holiday, we are releasing the weekly rig count post early.

The Eagle Ford Shale rig count remained flat this week with 90 rigs running across our coverage area by midday Wednesday.

In recent Eagle Ford news, TexasRailroad Commissioners warn against further federal overreach of the U.S. Environmental Protection Agency’s proposed rules on methane emissions for oil and gas operators.

A total of 700 oil and gas rigs were running across the United States this week. 162 were targeting natural gas (nine less than the previous week) and 538 were targeting oil in the U.S. (three less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)319 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 below.

Eagle Ford Oil & Gas Rigs

Natural gas rigs in the Eagle Ford are at 10 this week as natural gas prices rising slightly, trading at $1.95/mmbtu, a $.18 increase from the previous week.

The Eagle Ford oil rig count stayed at 80 with WTI oil prices ending the week at $37.50, an increase of $1.95. A total of 82 rigs are drilling horizontal wells, one are drilling directional wells, and eight are vertical rigs. Karnes County leads the region in development with 18 rigs this week. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

Eagle Ford Shale News

Oil Exports: Good News for Eagle Ford

Texas Oil Billionaire Shares the Love

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.

Oil Exports: Good News for Eagle Ford

December 22, 2015 Elizabeth Alford

Japan Eyes Eagle Ford Natural Gas — Oil Export Ban

The Eagle Ford Shale region will benefit in a huge way as the oil export ban is lifted.

Related: Oil Export Ban on Its Way Out?

Last week, President Obama revoked the export ban on all petroleum products that was imposed during the 1970s. Many producers and analysts who believed this policy hurt the economy have been fighting to repeal the anachronistic law for many years.

A Rice University study from April reveals that the decades-long oil export ban has had the greatest impact on producers in the Eagle Ford Shale. The study analyzed dozens of crude types on the open market to calculate their potential prices in the absence of trade barriers. Since the oil that is pumped out of the Eagle Ford has less sulpher than WTI or Brent, it should attract a higher price on the international market.

Analysts predict that the impact of open exports will include:

Increases in GNP by $38.1 billion in 2020
Enhanced free trade and lower the U.S. trade deficit
Strengthening of our national security
Further increases in domestic oil production
Lower gasoline prices
964,000 additional jobs
Benefits to manufacturing and service-related sectors in every state
Strengthening national security and America’s position in the world

Kenneth Medlock, senior director of the Center for Energy Studies at Rice University’s Baker Institute for Public Policy, also agrees that the light crude will garner higher prices in the international market because it is of higher quality. Based on their open market values, Medlock calculated that at $100 Brent prices, WTI would trade at nearly $102 while Eagle Ford crudes would fetch prices of $111. And in an unconstrained market, those crudes would already be delivered at a premium according to the Oil& Gas Investor.

domestic, crude, values, on, open, market, Rice University, Kenneth Medlock, Eagle Ford, Bakken, shale

Pioneer Natural Resources is already eager to get its product to the world and said they would be able to export crude by mid-2016.

“We expect U.S. crudes, especially light ones, to have a natural home in Mexico and other Latin American countries whose crude slate is increasingly heavy,” he said. “These countries are closer than other potential markets and would benefit from the higher gasoline and naphtha yields of lighter U.S. grades given their heavier production slate.”

— Timothy L. Dove, Pioneer’s president and COO

Texas Challenges Methane Rules

December 21, 2015 Elizabeth Alford

Fracking Safety — Methane Emissions Safety

TexasRailroad Commissioners warn against the new proposed methane rules.

In a letter to the head of the EPA, Railroad Commission Chairman David Porter and Commissioners Christi Craddick and Ryan Sitton warned against further federal overreach of the U.S. Environmental Protection Agency’s proposed rules on methane emissions for oil and gas operators. The letter highlighted the unnecessary cost to oil and gas operators that would likely stifle innovation and jobs in the industry.

In August, President Obama revealed a plan that would require oil and gas companies to cut methane pollution from drilling sites, distribution systems and in other areas of operation by 32 percent by 2030. This ruling is part of the President’s broad and aggressive plan to fight climate change, and many believe it would literally transform the energy industry.

“These rules are another attempt by the federal government to take over regulation of our state’s oil and gas industry. Texas has regulated this important industry in a robust and responsible manner for almost a century. These regulations are unnecessary and over-burdensome and will only impede industry, damage our economy and kill the jobs Texans rely on to support their families.”

— Chairman Porter

The EPA estimates that the ruling might cost the industry as much as $420 million and add more stress to fatigued companies who have battled for months of low crude prices.

Eagle Ford Rig Count Gains One

December 19, 2015 Elizabeth Alford

The Eagle Ford Shale rig count increased by one this week, ending with 90 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, another operator as Energy & Exploration Partners become the 18th Texas oil driller to file for bankruptcy.

A total of 709 oil and gas rigs were running across the United States this week. 168 were targeting natural gas (17 less than the previous week) and 541 were targeting oil in the U.S. (17 less than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.)320 of the rigs active in the U.S. were running in Texas.

Eagle Ford Oil & Gas Rigs

Natural gas rigs in the Eagle Ford are at 10 this week as natural gas prices declined slightly, trading at $1.77/mmbtu, a $.20 decrease from the previous week.

The Eagle Ford oil rig count rose to 80 with WTI oil prices ending the week at $34.55, an decrease of $1.07. A total of 80 rigs are drilling horizontal wells, one are drilling directional wells, and eight are vertical rigs. Karnes County leads the region in development with 18 rigs this week. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

Eagle Ford Shale News

Texas Oil Billionaire Shares the Love

Magnum Hunter Files Chapter 11

Trade Includes Eagle Ford Acreage

What is the Rig Count?

Texas Oil Billionaire Shares the Love

December 17, 2015 Elizabeth Alford

Mineral Owners May be Losing Money — Big Bonus for Hilcorp Workers

One Texas oil and gas president says "Merry Christmas" to his employees with generous $100,000 bonuses.

While other Texas oil producers struggle to stay afloat, Hilcorp doubled its output in 2015 to more than 150,000 barrels per day. As a great big thank you, owner Jeffery Hildebrandt will gift every employee with an astonishing $100,000 a piece, an outlay of more than $100 million.

Hildebrand believes that his employees are the reason for the company's success and he proves that by being unusually generous. And he may be on to something. In a day when loyalty and good work ethics are rare, genuinely appreciating employees can go a long way. It's really a smart business move and likely contributed to the company ranking #36 on Fortune's "100 Best Workplaces for Millennials" in 2015.

“Amanda Thompson is a receptionist for the company and told Fox 4 News that “It’s just a true gift, and I think myself, along with everyone, is not going to give less than 100 percent each day.”

This isn't the first time that Hilcorp's employees have been on the receiving end. Hildebrand's generosity is legendary. New employees receive a complimentary account already loaded with $2500 that they can add to (with matching funds) and then use for charity. These bonuses began five years ago after Hilcorp achieved its goal of doubling its oil and gas production. That year, they gifted every employee with either $35,000 cash or $50,000 towards a new car.