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Latest Activity: Aug 7
The Eagle Ford Shale rig count continues to waffle, with our data showing a drop last week to 88 rigs running across our coverage area by midday Friday. The total U.S. rig count is also falling.
In recent Eagle Ford news, Texas' production of oil, gas, and condensate is at its lowest levels since February.
A total of 936 oil and gas rigs were running across the United States this week, eight less than last week. 186 rigs targeted natural gas (down one) and 749 were targeting oil in the U.S. (down seven). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 452 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.
10 rigs in the Eagle Ford region targeted natural gas this week with the commodity trading at $3.08/mmbtu.
78 Eagle Ford rigs were targeting oil with WTI oil prices at $49.61.
A total of 85 rigs are drilling horizontal wells, zero are drilling directional wells and three are vertical.
Karnes County leads activity in the region with 16 rigs in production. See the full list below in the Eagle Ford Shale Drilling by County below.
Eagle Ford Shale Rig Count by County-September 15, 2017
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.
Texas' production of oil, gas, and condensate is at its lowest levels since February.
The Texas Railroad Commission released preliminary production figures for June, showing the state produced 75,254,080 barrels of crude oil and 591,408,525 mcf of total natural gas from oil and gas wells.
These production numbers are at their lowest since February, though they are slightly higher than this time last year.
Texas Production from Oil and Gas Wells - Texas Railroad Commission
The state's regulatory agency reported that the total production in Texas between July 2016 to June 2017 was 995 million barrels of crude oil and 7.8 trillion cubic feet of total gas. Other June stats include:
Webb County in the Eagle Ford continues to dominate natural gas production and has produced 375, 430, 087 mcf during the first six months of 2017. For crude oil, Eagle Ford's Karnes County produced 40, 870, 819 bbls, a close second to Midland COunty with 42,794,640 bbls.
Top Eagle Ford Shale Counties for January-June 2017Read more at rrc.texas.gov
The oil and gas industry throughout Texas and the Eagle Ford is still recovering from the devastation of the record-breaking Hurricane Harvey.
Two weeks after the storm slammed into the Lone Star State, much of the petrochemical and refining capacity is up and running. But activity in the Eagle Ford is still not 100%.
The destruction has left some significant gaps in the Eagle Ford Shale supply chain, causing delays and frustrations for some operators. Even as many companies are resuming operations, they are faced with hard-to-travel roads and a reduced workforce.
“Texas’ energy infrastructure is recovering quickly from the devastating impacts of Hurricane Harvey. The industry and state and federal governments have worked expeditiously to ensure that citizens’ energy needs are met, primarily at the gas pump. Several Texas refineries have restarted although a few remain closed as assessments are completed. Pipeline infrastructure including the Magellan, Explorer and Colonial pipelines are all operational again.”— Texas Railroad Commissioner Ryan Sitton
During the storm, shut-in wells caused production to trickle, with some estimating that the storm affected 25 percent of the nation's crude oil refining capacity. Eagle Ford and other Texas operators cut production by 800,000-900,000 barrels per day during the week of the storm. The disruption even caused Baker Hughes to suspend its weekly rig count last week saying there was too little data coming in.
Consumers felt an immediate impact at the gas pump, as prices spiked in the days following Hurricane Harvey's landfall. The Automobile Association of America said the average cost across Texas is up more than 50 cents a gallon to $2.53. The Energy Department announced this week that six refineries in the Gulf Coast region are still shut down. Five refineries have begun to come back online and another six are operating with reduced rates of gasoline production.
In preparation for the storm, many operators in the Eagle Ford and across Texas were forced to slow or stop production. Some had wells in the path of the storm, while others were impacted when the stress on the infrastructure wouldn't allow them to get their product to market.
Here is the latest update on the impact to Eagle Ford Operators: