Eagle Ford Basin | December 2020
A heavy shale play, the Eagle Ford basin is located east of the Permian, stretching from Dallas to San Antonio. Primarily a gas field with smaller oil plays, it boasts proven reserves of 3.37 billion bbl of oil and 2.5 TCF of gas.
State Drilling Statistics (End of December)
Active Drilling Rigs in Basin- 26
Total Rigs in Texas- 161
Total Rigs in United States- 351
Total U.S. Rigs down 56% YTD
Eagle Ford Top Producers
Top Gas Producer- EOG Resources, INC.
Top Oil Producer- EOG Resources, INC.
Eagle Ford Gets Worse Before it Gets Better
Shale players, especially those in the Eagle Ford, were hurting hard through 2020 and attempted to mitigate the bleeding of funds through lowering CAPEX for the remainder of the year, which in turn led to huge drops in upstream activity in the Eagle Ford. Projections into 2021 show that there will likely be a 10% decrease in production year-on-year due to the slump in new well development. A December report from analyst firm GlobalData suggests that average production will be just over 1 million barrels per day for 2021 as opposed to the already dwindling 1.13 million observed in 2020. While this may sound gloomy, this report was released when oil futures were averaging just $42 for the first half of 2021. When looking at natural gas prices, the futures were expected to average nearly $3 per mcf for the first half of 2021 which could spark interest for further Eagle Ford development. Either way, future projections don’t change the fact that the 16 major Eagle Ford operators cut capital spending by 44% or over $3 billion. 2021 seems like the year that will either make or break the Eagle Ford.
Top Gas Producers (2020 cum)
Top Oil Producers (2020 cum)
Texas Oil Production
Texas Gas Production
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