Eagle Ford Basin | July 2020
Field Overview
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 July)
Active Drilling Rigs in Basin- 12
Total Rigs in Texas- 101
Total Rigs in United States- 251
Total U.S. Rigs down 73% YTD
Eagle Ford Top Producers
Top Oil Producer- EOG
Top Gas Producer- XTO
Financial & Economic Updates
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Not a lot of financial information to be presented this month within the Permian outside of mass restructuring. Please navigate to the periodicals page, or listen to a podcast that we have uploaded recently to supplement your knowledge of the industry in the present.
State Highlights
Eagle Ford Pales in Comparison
As if it wasn’t already bad enough that the Eagle Ford had been eclipsed by its hometown neighbor, the Permian, the play continues to plummet in popularity. Back in May, the Eagle Ford had fallen to 30 active drilling rigs while the Haynesville shale of East Texas and North Louisiana sat at 32. By the end of July, there were 33 active rigs in the Haynesville (a 1 rig increase since May), and only 9 in the Eagle Ford. This is the first time there have been fewer than 10 drilling rigs in South Texas since the shale play was discovered back in October 2008. The newest development is the potential for the future. As if the gap was not already wide enough, no horizontal drilling permits were filled in the Eagle Ford between July 8-14. In that same time, 5 permits were put up for the Haynesville shale between Houston oil companies Rockliff Energy and Sabine Oil & Gas.
Hope for Texas Flaring
Although many have speculated that Texas would take little action to mitigate the increased flaring it has seen the last few years, the end of July showed that some initiative has been taken to better understand the problem. Flaring has gone down with 99.5% of the gas produced in Texas sold in the Month of May. BUT, this is a result of COVID and price war with reduced associated gas volumes, and regulators are looking to take advantage of the down time it has afforded. Meetings were occurring in June between regulators and E&P executives as they discussed the best practices and strategies to reduce flaring which was drafted into a document of incorporated recommendations from this new Texas task force. If the rules were to be finalized in the coming months there would be reduced flaring durations, incentives for E&Ps to use updated flaring technology, increased detail when requesting the need to vent, and increased compliance review. It looks like the policies will pass as regulators and E&P executives come together with the common goal to reduce flaring and venting by 2025. In 2018, Texas flared more gas than the annual use of Arizona and South Carolina, and this flared gas went untaxed by the state.
Top Oil Producers (2020 cum)
| Rank | Company | Production (Bbl) |
| 1 | EOG | 35,768,718 |
| 2 | Burlington | 17,034,660 |
| 3 | Chesapeake | 13,409,321 |
| 4 | Marathon | 9,748,033 |
| 5 | Devon | 6,268,100 |
Top Gas Producers (2020 cum)
| Rank | Company | Production (Mscf) |
| 1 | XTO | 132,909,142 |
| 2 | Rockcliff | 90,135,211 |
| 3 | BP America | 89,057,714 |
| 4 | Lewis | 76,405,898 |
| 5 | SM Energy | 47,641,898 |
Refining
Texas Oil Production
Texas Gas Production
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