South Texas Oil & Gas Convention
Corpus Christi, TX • American Bank Center • July 20-21, 2016 1901 N Shoreline Blvd, Corpus Christi, TX 78401
There are over 200 active operators in the 30 county area that is prospective for the Eagle Ford Shale. The Eagle Ford Shale is quite possibly the largest single economic development in the history of the state of Texas and ranks as the largest oil & gas development in the world. Almost $30 billion was spent developing the play in 2013. The Eagle Ford had more than a $60 billion dollar impact on the local South Texas economy in 2012 and over 116,000 Eagle Ford jobs were supported in the 20 county area impacted by the play. Add the jobs created in surrounding counties and the picture of a modern oil boom begins to take shape. From record drilling levels to wells producing over 4,000 b/d of oil initially, the play is redefining South Texas as an oil industry hotbed.
Petrohawk drilled the first well to produce oil and gas from the Eagle Ford in 2008, in LaSalle County. Oil companies quickly extended the production area, which stretches from the Texas-Mexico border in Webb and Maverick counties and extends 400 miles toward East Texas. The play is 50 miles wide and an average of 250 feet thick at a depth between 4000 and 12,000 feet. The shale contains a high amount of carbonate which makes it brittle and easier to use hydraulic fracturing to produce the oil or gas.
The oil reserves in the Eagle Ford Shale Play were estimated in 2011 at 3 billion barrels. The US Energy Information Administration estimated that the Eagle Ford held 50.2 trillion cubic feet of unproved, technically recoverable gas. The average well was estimated to produce 2.36 billion cubic feet of gas.
In the first six months of 2013, the Eagle Ford produced 2.69 billion cubic feet of gas and 599,000 barrels of oil and condensate per day; the oil production represented an increase of 51% over the average for 2012. By the end of 2013, production had skyrocketed to over 1,000,000 boe/day. As of 2013, Eagle Ford production extended into 24 counties in Texas. Analysts expect that $30 billion will be spent on further developing Eagle Ford in 2015. The large increase in tight oil production is one of the reasons behind the price drop in late 2014.
Early wells in the Eagle Ford Formation were so productive that leasing and drilling activities proceeded at a very rapid rate. This attracted an enormous amount of media attention between 2008 and 2010 as landmen were out leasing mineral rights, drilling companies were applying for permits, and oil and gas production was rising rapidly. The Eagle Ford Shale very quickly became one of the most heavily drilled rock units in the United States.
Houston-based Apache Corp. and EOG Resources are two of the largest lease-holders in the Eagle Ford. Other major players include Petrohawk, Swift Energy, ExxonMobil, ConocoPhillips, Murphy Oil, Chesapeake, Cabot Oil & Gas and Pioneer Natural Resources.
ECONOMICS: The production of oil and natural gas in the Eagle Ford Shale generated more than $87 billion in total economic output for the state last year in 2013 and that shale activity supported almost 155,000 full-time equivalent jobs and provided more than $4.4 billion to local and state governments in 2013. Economic analyst project that by year 2023, the Eagle Ford Shale region will support more than 200,000 jobs and generate over $130 billion for Texas. These new numbers exceed what was projected in previous studies due to the attraction of new manufacturing projects associated with natural gas and additional processing, refining and port facilities. The economic output of the region is forecast to continue solid growth long-term, considering current trends of stable energy prices and industry innovation.
Analysts examined the economic impact of the Eagle Ford Shale on the 21 counties directly and indirectly involved in production. The 15 core counties where activity is most prevalent are Atascosa, Bee, DeWitt, Dimmit, Frio, Gonzales, Karnes, La Salle, Lavaca, Live Oak, Maverick, McMullen, Webb, Wilson and Zavala. The six neighboring counties where significant activity not including extraction is occurring are Bexar, Jim Wells, Nueces, San Patricio, Uvalde and Victoria.
To date, oil and condensate production in the Eagle Ford Shale has grown from 581 barrels per day in 2008 to more than 1.5 million barrels per day as of August 2014, continuing to exceed expectations and attracting more capital investments than any shale field in the United States. That economic growth is making community sustainability a more achievable goal.