Eagle Ford Basin | June 2021
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 7/9)
Active Drilling Rigs in Basin- 32
Total Rigs in Texas- 224
Total Rigs in United States- 479
Total U.S. Rigs up 86% YTD
Eagle Ford Permitting Data (End of June)
Permits Approved – 144
Eagle Ford Top Producers
Top Gas Producer- EOG Resources, INC.
Top Oil Producer- EOG Resources, INC.
Texas Group to Explore Wastewater Use
For years, Texas lawmakers and oil and gas industry allies have championed the idea that produced water might help fulfill the state’s overall water needs. The Texas Legislature recently enacted Senate Bill 601, establishing a Texas Produced Water Consortium, in recognition of the need to better understand treatment demands, economic challenges, and public health and environmental dangers associated with industry’s wastewater. Texas is the second state to form a consortium, following the creation of a Produced Water Research Consortium in New Mexico two years ago. State officials in New Mexico have made a commendable effort to get the science correct before exploring reuse or discharge options outside of the oilfield. The state is just about to begin preliminary pilot testing to evaluate technology and water quality outcomes, but will not release any treated waters into the environment at this time, limiting the potential of negative consequences from this research.
Hartree Partners Buy Midstream Assets from Plains All American
Plains All American and Hartree Partners, LP announced the signing of definitive agreements under which Plains would sell its Pine Prairie and Southern Pines natural gas storage facilities to a Hartree affiliate for $850 million in cash. The sale will generate cash that Plains plans to use to reduce debt and increase investor returns. According to Willie Chiang, the chairman and CEO of Plains, this deal is a win-win as Plains exits an attractive position in a reasonable time frame and passes on high quality and critical infrastructure to another company who might make use of it. The deal includes roughly 70 billion cubic feet of total working gas capacity spread among nine caverns, as well as associated base gas, header pipelines, and compression facilities.
Texas Backs the Industry
Governor Greg Abbott signed a bill prohibiting the state from investing in companies that cut ties to the oil and gas industry in protest. Oil and gas companies, which are already under pressure to increase dividends to appease shareholders, must now contend with large organizations ranging from Wall Street banks to Silicon Valley tech behemoths that consider climate change to be a top concern when making investment decisions. The bills are the latest examples of the growing divide between Republican lawmakers and corporations that have taken a public stance on hot-button issues.
Operators with Most Permits (June)
Top BOE Production By Operator (mbbls)
|Rank||Company||BOE Production YTD (as of 5/21)|
Texas Oil Production
Texas Gas Production
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