Texas Drilling Permits up Over 60%

Eagle Ford Shale Drilling

It's been a busy year for oil and gas drilling across Texas and in the Eagle Ford Shale.

For January-October, 2017, the Texas Railroad Commission (RRC) issued 4097 more (60%) oil and gas permits than last year. 1789 of those permits were granted to operators in Eagle Ford Shale counties, surpassing the total 2016 number of 1119.

Rig Count Increases Across Country; Flat in Eagle Ford

The RRC announced earlier this month that it issued 997 original drilling permits for the state in October, compared to 855 in October 2016. The breakdown includes:

  • 885 new oil or gas wells permits
  • 5 to re-enter plugged well bores permits
  • 107 for re-completions of existing wells permits
  • 236 oil, 46 gas, 646 oil or gas, 48 injection, zero service and 21 other permits

The Midland area continues to lead development for October, with the RRC issuing 440 to the region. Next was the San Antonio region with 126 oil and gas permits issued.

Texas Oil & Gas Permits.png

The RRC also reports that there have been 26 new field discoveries since the beginning of the year; 15 oil and 11 natural gas.

"In October 2017, Commission staff processed 257 oil, 91 gas, 39 injection and four other completions compared to 445 oil, 203 gas, 20 injection and zero other completions in October 2016. Total well completions processed for 2017 year to date are 5,799; down from 9,405 recorded during the same period in 2016."

— Texas Railroad Commission June Report

Rig Count Increases Across Country; Flat in Eagle Ford

The number of drilling rigs across the country increased this week, while Eagle Ford Shale rig count was unchanged with 82 rigs were running across our coverage area by midday Friday.  

In recent industry news, Texas oil and gas companies have been ordered to pay fines of over $1.8 million for various rules violations and compliance issues.

Oil & Gas Companies Fined $1.8 Million

A total of 915 oil and gas rigs were running across the United States this week, eight more than last week. 177 rigs were targeting natural gas (+8) and 738 were targeting oil in the U.S. (+0). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 449 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

9 rigs in the Eagle Ford region targeted natural gas this week with the commodity trading at $3.10/mmbtu.

73 Eagle Ford rigs were targeting oil with WTI oil prices sitting at $56.55.

A total of 77 rigs are drilling horizontal wells, one is drilling a directional well and four are vertical.

Karnes County leads activity in the region with 18 rigs in production. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

Eagle Ford Shale Rig Count by County-November 17 2017

Eagle Ford Shale Rig Count by County-November 17 2017

 

 

Eagle Ford Shale News

Oil & Gas Companies Fined $1.8 Million

EOG: Eagle Ford Remains Resilient

Oil Prices on the Rise

Eagle Ford Expects Meager Gains in November

 

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.

Eagle Ford Shale Rig Count Slides Backward to March Levels

Eagle Ford Shale Rig Count

After months of increases, the Eagle Ford Shale rig count slid this week to levels not seen since March of this year. 82 rigs were running across our coverage area by midday Friday.  

In recent industry news, EOG Resources announced the company's Eagle Ford operations remain resilient and well activity is steady and predictable.

EOG: Eagle Ford Remains Resilient

A total of 907 oil and gas rigs were running across the United States this week, nine more than last week. 169 rigs were targeting natural gas (0 change) and 738 were targeting oil in the U.S. (+9). The remainder were drilling service wells (e.g. disposal wells, injection wells, etc.) 442 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

9 rigs in the Eagle Ford region targeted natural gas this week with the commodity trading at $3.21/mmbtu.

73 Eagle Ford rigs were targeting oil with WTI oil prices rising to $56.74.

A total of 77 rigs are drilling horizontal wells, one is drilling a directional well and four are vertical.

Karnes County leads activity in the region with 19 rigs in production. See the full list below in the Eagle Ford Shale Drilling by County below.

Eagle Ford Shale Drilling by County

Eagle Ford Shale Rig Count by County-November 10 2017

Eagle Ford Shale Rig Count by County-November 10 2017

 

Eagle Ford Shale News

EOG: Eagle Ford Remains Resilient

Oil Prices on the Rise

Eagle Ford Expects Meager Gains in November

New Tech Designed to Get to the Bottom of Texas Earthquakes

 

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.

EOG: Eagle Ford Remains Resilient

EOG in the Eagle Ford

EOG Resources announced solid third quarter operational and financial results last week. The company's Eagle Ford operations remain resilient and well activity is steady and predictable.

Related: Oil Prices on the Rise

During a third-quarter earnings call, EOG executives said the company experienced strong results by focusing on a multi-basin premium portfolio. The company's net income was $100.5 million, compared to a $190.0 million loss in the third quarter 2016.

For the rest of the year, EOG now expects to complete approximately 505 net wells, an increase over previous the previous outlook of 480 net wells. 

Eagle Ford Operations

EOG's Eagle Ford operations are delivering both production volumes and economic reserves, according to Executive VP Lloyd W. Helms, Jr.  Drilling units are producing more resource and the productivity per well is steady and predictable. 

Eagle Ford Results include:

  • Completed 44 gross (39 net) wells
  • Average treated lateral length of well: 6,500 feet per well
  • Average 30-day initial production rates per well: 1,685 Boed, or 1,340 Bopd, 175 Bpd of NGLs and 1.0 MMcfd of natural gas
  • Gonzales County, EOG completed a four-well pattern, the Angus Unit 6H-9H, with an average treated lateral length of 5,700 feet per well and average 30-day initial production rates per well of 3,945 Boed, or 2,995 Bopd, 480 Bpd of NGLs and 2.8 MMcfd of natural gas. 
  • close to 99% held by production
“EOG’s Eagle Ford operations remained resilient during the third quarter, as robust infrastructure and comprehensive technology and communication assets enabled EOG to manage operations in a safe and efficient manner during Hurricane Harvey. Ongoing efficiency improvements have enabled EOG to add five net wells to its planned 2017 completions, for a total of 200 net wells.”