Sitton: Frack Ruling Right Decision

Recent fracking ruling is a ‘landmark’ case, according to Texas Railroad Commissioner Ryan Sitton.

Related: Bakken Officials Applaud Court ruling on Fracking

State officials from oil and gas producing regions are lauding the recent ruling that struck down new regulations for fracking in public lands. Even state that aren’t specifically affected are saying the ruling affirms their power to oversee their own state’s oil and gas activity.

After the Bureau of Land Management (BLM) proposed tougher fracking regulations last year, industry groups joined with several states to form a massive case that was heard in Judge Scott Skavdahl’s court. The argued that fracking rules aren’t necessary because the EPA has already granted authority to the states to monitor and protect underground water sources. Last month, Stavdahl affirmed that the BLM had overstepped their authority and affirmed that the states have an interest to regulate hydraulic fracturing.

Texas Railroad Commissioner Ryan Sitton spoke to Midland Reporter about the decision, hailing it as a landmark case where constitutional issues trump politics. He said that the Railroad Commission’s expertise is far superior to that of far-off bureaucrats, which makes them the best agency to monitor environmental rulings in Texas.

I really applaud the judge. He seemed to steer very clear of politics in this decision and talked very clearly about what powers were enumerated to the executive branch, that Congress had not given this power to the executive branch. He talked about activities that were going on the states, and I think that this sends a very broad message that states have been regulating this and have a very good track record at regulation.
— Ryan Sitton

Texas officials currently faces environmental issues around the state as more and more people express concerns over the impact of oil and gas activity. In April the U.S. Army Corp of Engineers (USACE) tightened fracking regulations near a North Texas Dam after concerns over the proximity of oil and gas activity.

Related: Fracking Rules Tightened in North Texas

Eagle Ford Rig Counts Continue to Flounder

Eagle Ford Rig Count Falls

Eagle Ford Rig Count Falls

The Eagle Ford Shale rig count fell by one this week, ending with34 rigs running across our coverage area by midday Friday.

In recent Eagle Ford news, the EIA (U.S. Energy Information Administration) is predicting that production in the Eagle Ford will experience a steep decline in July.

Read more: EIA: Eagle Ford Production Decline to Surpass Other Shale Regions

A total of 430 oil and gas rigs were running across the United States this week, an increase of 10 over last week. 89 were targeting natural gas (one less than the previous week) and 341 were targeting oil in the U.S. (11 more than the previous week). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 198 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 slipped to six running across the Eagle Ford, wth natural gas prices increasing on the rise to $2.93/mmbtu.

The Eagle Ford rigs targeting oil remained flat at 28 with WTI oil prices climbing to $49.18, a $1.54 increase this week. A total of 32 rigs are drilling horizontal wells, one is drilling directional wells, and one is vertical.

Karnes County leads development in the region but fell to 8 rigs running this week. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

agle Ford Shale News

Marathon Fined for Eagle Ford Infractions

EIA: Eagle Ford Production Decline to Surpass Other Shale Regions

Karnes County Receives Gift to Repair Road

Eagle Ford Gas Heads to Mexico in $3.6 Billion Pipeline Deal

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.

Read more at bakerhughes.com

Marathon Fined for Eagle Ford Infractions

Map Showing Threat of Harmful Gas Exposure in Eagle Ford

Map Showing Threat of Harmful Gas Exposure in Eagle Ford

Marathon Oil admits to air quality violations in the Eagle Ford.

Related: Oil & Gas ‘Threat Map’ Pinpoints Millions at Risk in Texas

Marathon Oil will pay $7320 after failing to conduct performance tests and for exceeding the natural gas production rates by 5.43 million standard cubic feet per day at the company’s Live Oak facility.

The Texas Commission on Environmental Quality issued a fine of $11,000 originally, but was reduced based on Marathon’s compliance history and for good faith since the company self-reported the incidents. After paying $3,000 in fines, the company will make a donation to a tire cleanup program through the Texas Association of Resource Conservation and Development Areas.

Marathon Oil is committed to safety and environmental stewardship. Updated and streamlined procedures, checks and balances have been implemented since these self-reported items were identified.
— A spokeswoman for the company, Briana Lyssy

Earlier this month, environmental groups released a “threat map’ that showed Eagle Ford counties are at the highest risk for exposure to dangerous gas and air pollution of any area in the state. The map of Texas details the 398,787 active oil and natural gas wells currently in use in the state with over 2.3 million people within the 1/2 mile radius of risk. The map highlights counties in the Eagle Ford as having the highest risk of exposure to methane and carcinogens including DeWitt, Karnes, McMullen, Frio and Zavala Counties.

Eagle Ford Gas Heads to Mexico in $3.6 Billion Pipeline Deal

TransCanada Expands Pipelines in Mexcio

TransCanada Expands Pipelines in Mexcio

Mexico’s demand for more electricity is creating a golden opportunity for Eagle Ford producers.

Related: Eagle Ford & Mexico- An Important Partnership

TransCanada and Spectra Energy are among producers who will receive $3.6 billion in contracts from Mexico’s state-owned Federal Electricity Commission to build 665 miles of pipelines to carry natural gas.

In 2014, Mexico passed historic energy reforms to boost the lagging production brought on by decades of inefficiency and diminished supply. This move set the stage for greater collaboration between businesses that operate in the Eagle Ford Shale and Mexico.

TransCanada was the first private company to construct and operate natural gas pipelines in Mexico and become a key player since the Mexican government made the expansion of the national gas pipeline a priority. In this latest deal, TransCanada will construct and operate a $2.1 billion natural gas pipeline in Mexico, which will ship natural gas from both U.S. shale plays and offshore sources.

By 2018, TransCanada will be operating seven major natural gas pipeline systems in Mexico representing approximately a US$5 billion investment. In addition to supplying natural gas to some areas of the country where it has never before been available, these projects contribute to strengthening local economies and provide significant employment opportunities, particularly during construction.

Spectra Energy was awarded a $1.5 billion contract to build a pipeline from Nueces County, Texas, to the Mexican border at Brownsville. The Texas portion of the pipeline is planned to be completed in 2018 and will transport up to 2.6 billion cubic feet of natural gas a day.

Read more about TransCanada in Mexico