Karnes County Earthquake Sets Record in Eagle Ford Area

A 4.8 magnitude Karnes County earthquake rattled doors Thursday morning. (Atascosa County is now reported as the epicenter) You can view USGS data Here. It isn't the first earthquake in the area, but was larger than previous quakes. It was just 2008, which is before Eagle Ford Shale development began, when a 3.7 magnitude quake struck the area and 1993 when the largest I can remember hit the area (4.3 mag). Yesterday's disturbance is likely the largest on record for the area, but one of a dozen or so since 1990. Tremors were felt as far as San Antonio. Oil & gas drilling activity has not been linked to this event. If drilling directly led to earthquakes, West Texas would have fallen off the map a long time ago. It just so happens that oil & gas are present in areas of high tectonic activity. The Los Angeles basin is one of the most active areas in the world and also boast the most hydrocarbons per cubic ft of rock in the world.

There have been concerns that deep disposal wells where fluids are being injected into the ground could be tied to small earthquakes. It won't be clear for a long time if that might be the case here. Test are ongoing in more established shale plays in North Texas' Barnett Shale and in Arkansas' Fayetteville Shale.

No injuries or major damage was reported, and the light quake wasn't even noticed by some residents living close to the epicenter, near Karnes City. Yet small vibrations felt in San Antonio did cause occupants to briefly evacuate a downtown federal building as a precaution.

The quake struck at 7:24 a.m. The U.S. Geological Survey said it was the largest earthquake on record for the area, surpassing a magnitude-4.3 shock recorded in 1993.

Thursday's earthquake occurred in a zone that has shaken in the past. From 1990 to 2006, at least a dozen small quakes rattled this region.

"It's an area where we've seen events before," said U.S. Geological Survey seismologist Susan Hough in Pasadena, Calif. "So it's not a big surprise."

Read a full news release at nydailynews.com

Here's an interview with a geologist at ksat.com and an article from caller.com that details the total number of earthquakes expected worldwide this year.

Water Availability Questions Create Worries About Fracking

Water availability in the hottest areas of the Eagle Ford will become an even greater concern if the drought continues. Water used in drilling and completing wells pulls on local water sources and decreases supply. Without aquifers being recharged, there will be areas that begin feel the effects of greater water use. That won't make for happy farmers.  The article mentions "fracking" and "frack sites" several times. The proximity of a well location or completion isn't the drain on the aquifers, it is the water wells that are pulling water up to the surface. Yes, there are millions of gallons used in fracking, but that water can be sourced from other places if the situation gets too bad. The real question will be how do economics change and can operators drill at the same pace if water is limited.

Two fracking sites are less than a half-mile west of Hedtke's front porch off Farm-to-Market Road 1144 near Farm-to-Market Road 99. Three others are located within sight of his favorite shade tree out back. Another is planned, he said, less than a quarter mile from his back door.

Water is in high demand throughout Karnes County, an area already ravaged by the state's worst drought in 50 years.

Twelve-inch, aboveground waterlines crisscross the county, pieced together in 20-foot sections. Signs advertise freshwater sources and well digging services needed to sustain the various fracking sites that, on average, require between 4 and 6 million gallons.

The Eagle Ford Shale formation is so dense that only a mixture of water, sand and a variety of chemicals applied at high pressure, can loosen the shale's grip long enough to free the trapped oil and gas.

H2S, Labor & Pipeline Shortages, Higher Service Costs Headline 2011

Eagle Ford Shale oil & gas was the talk of the town in San Antonio today. The oil and gas conference goes through tomorrow and will continue with both operators and service providers presenting. For everyone who wasn't able to attend, here are a few things we're hearing around the conference:

• H2S is a much bigger issue than reported in early Eagle Ford wells. No one was able to describe why, but wells are producing various amounts of H2S throughout the play. H2S can be treated, but wells aren't consistent either. In some cases, adjacent leases are producing vastly different amounts of the corrosive gas
• A lot of liquids are being produced, but we don't have enough pipelines to move the crude effectively. That will change over the next few years, but we'll experience a period of larger price differentials before it corrects itself
• Higher service costs have hit the operators hard in 2011. We've heard examples of well costs going up 50%+ year over year. A lot of it is service costs inflation, but a lot of it is longer laterals, larger completions, and wide spread use of more expensive proppants
• The labor shortage is a big issue. I won't guess a number, but there would be a lot more rigs active if there were people to provide all of the needed services
• If you've missed it, there's also a housing shortage across South Texas. As you move closer to the border, we've heard companies might build large scale man camps and move to a two weeks on, two weeks off schedule

GDF - Shale Drilling and the Environment

GDF voices a need for improvements before development and hydraulic fracturing move forward in Europe. I'm not sure if the CEO is saying fracking actually needs to improve or if the understanding of the technology and application needs to improve.

The technology used to extract oil and gas from shale rocks, a process that has revolutionized the U.S. energy industry, should be improved to protect the environment, the head of Europe’s largest gas company said.

“There are concerns about the environmental impact,” Gerard Mestrallet, chief executive officer of GDF Suez (GSZ) SA, said in an interview at Bloomberg’s headquarters in New York. “Probably it can be improved and probably it has to be improved.”

Hydraulic fracturing, a technique that uses water, sand and chemicals to break apart rocks and release trapped fuel, has made the U.S. the world’s largest natural gas producer. That success hasn’t quelled concern that fracking, as the process is known, risks polluting drinking water.

Read the full news release at bloomberg.com

Karnes County Well Fire Starts During a Hot Oil Treatment

A Karnes County fire broke out Thursday September 22, 2011, during maintenence of a 60 year old producing well operated by Amerril Energy. The fire was first reported as a rig explosion, but as details emerged it was evident the fire was started during a hot oil treatment of an existing well by Texas Hot Oilers out of Giddings. Hot oil treatments are used to clear paraffins out of a well. The paraffins (wax) can hinder production flows or block rod pumps from operating effectively. It has been reported the oil backed up and caught fire where propane was being used as the heat source. Flames stretched five to six stories into the air shortly after the explosion. Two members of the crew were taken to the hospital and one has already been released. The other is expected to make a full recovery.

“When I walked out of the courthouse in Karnes City, I could see the black smoke, and that’s a good 16 to 17 miles away,” said Karnes County Sheriff David Jalufka.

The sheriff and firefighters from two different jurisdictions responded, as the smoke was carried by 50-foot flames atop an oil well of FM 887 and County Road 229.