• 5 minutes Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 7 minutes China Faces Economic Collapse
  • 11 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 13 minutes Iran in the world market
  • 15 minutes Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 17 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 3 hours Saudis Confirm a Cruise Missile from Iranian Origin
  • 2 hours Let's shut down dissent like The Conversation in Australia
  • 8 hours Trump new National Security Advisor. Trump easily manipulated.
  • 6 hours Is It Time To Invest In Offshore Drillers?
  • 13 hours Aramco Production
  • 4 hours Trump Will Win In 2020 And Beyond..?
  • 9 hours The Spy Money: U.S. Wants To Seize All Money Edward Snowden Makes From New Book
  • 2 hours Democrats and Gun Views
  • 1 day USA Wants Iran War -- Shooty Shooty More
  • 1 day The Belt & Road Initiative: A Wolf in Sheep's Clothing?
  • 6 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
Alt Text

Aramco’s Oil Disruptions Could Last Months: Analyst

Energy Aspects’ chief oil analyst…

Alt Text

A Dramatic U-Turn In Mexican Oil & Gas

Economic headwinds, a failing national…

Alt Text

Oil Prices May Slump Heavily In 2020

OPEC has decided not to…

Jen Alic

Jen Alic

 

More Info

Premium Content

Eagle Ford: The Hottest New US Shale Play

Who’s hot in Eagle Ford? Right now it’s Marathon Oil (US: MRO), which has earmarked $1.9 billion of it’s $5.2 billion in 2013 capital for this south Texas shale play.

For Eagle Ford, we’re talking about 7,500 in total acreage, five producing wells, two more wells being drilled, and the potential for 100 wells. Eagle Ford is probably the most active shale plays right now, and drilling results have been a bit better than Bakken.

After faring well in Bakken shale in North Dakota, and in Oklahoma, Marathon Oil is turning its attention to south Texas, where it hopes to reach production levels of 85,000 net barrels of oil equivalent per day in 2013.

Is it feasible? Yes. The past quarter of this year saw production from Eagle Ford almost double, so it’s on the right track. Right now, production is at about 40,000 bpd.

Related Articles: Booming U.S. Natural Gas Production to Export LNG to Thailand?

And the Houston-based company is crediting its Eagle Ford operations with an 11% jump in profits for the third quarter of 2012.

Oil production was up 500,000 barrels per day from September 2011 to September 2012—largely because of the Eagle Ford shale play. As things stand, Eagle Ford—which borders Mexico--could soon out-produce west Texas’ Permian Basin.

Most of Eagle Ford’s oil is found in the area’s northernmost tip, while elsewhere the play offers condensate and dry gas. Last year alone, according to Texas authorities, Eagle Ford produced 914 million cubic feet of natural gas per day and 119,353 barrels of oil per day. For gas, those figures are slightly lower for 2012, but for oil, they have increased to nearly 300,000 bpd through August.

Right now, the top producer is EOG Resources (NYSE:EOG), which is pumping out around 110,000 barrels of oil equivalent per day and owns about 1.6 billion boe of reserves in Eagle Ford.

Related Articles: Chevron Waits for Romanian Vote to Decide Shale Fate

But Marathon isn’t far behind. Though it’s only pumping about 40,000 bpd right now, that represents a doubling in one quarter alone, and they shouldn’t have too much trouble reaching their 2013 production target of 85,000 bpd.

We expect to see some buyouts in Eagle Ford, though. The majors aren’t likely to sit back and watch while EOG and Range Resources (NYSE:RRC) hold on to a sizable portion of Eagle Ford acreage.

It was Petrohawk Energy Corp. which got in there first, meeting will drilling success in 2008. But it was bought out last year for $15.1 billion by Houston-based BHP Billiton (BHP, BLT.LN).

By. Jen Alic of Oilprice.com




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play