Natural Gas Prices not affecting Eagle Ford Shale Drilling
The Eagle Ford Shale continues to increase production even when natural gas prices are low.
Published on: Mar 3, 2016
Transcripts - Natural Gas Prices not affecting Eagle Ford Shale Drilling
Natural Gas Prices not affecting Eagle Ford Shale Drilling In most parts of the country where shale playsexist we have seen a decrease in the number of wellsbeing drilled as of late. The recent drop in the price ofnatural gas has forced many companies to switch theirfocus to more oil rich areas. Luckily for operators andthe people of South Texas the Eagle Ford Shalecontains a large oil window on the north side of theplay. So while operating companies in other parts ofthe country are drilling just to hold on to their leases,business in parts of the Eagle Ford continue to flourish. The rig count in the Eagle Ford is now roughly250 rigs which is up from a year ago where there wereabout 180. This is not the same trend however as wesee in other parts of the country like the Haynesvilleshale or Marcellus. Other parts of the country thatcompare with the Eagle Ford in that they are blessedwith oil include the Permian Basin of West Texas and the Williston Basin / Bakken Shale ofNorth Dakota. While natural gas prices remains at these low levels the concentration of newwells will be focused around these oil producing areas. As for the Eagle Ford, having a dry gas, wet gas and super rich region of the play willallow this area to be profitable in times when both natural gas prices are high or when oil pricesare high which they presently are. This characteristic will also allow this play to produce for along time and not just be a one hit wonder. The Eagle Ford brought $25 billion dollars to theSouth Texas economy in 2011 and don’t expect a slow down any time soon in the amount ofmoney that is pouring out of a region rich in natural gas as well as oil. Mineral rights and royalty owners have been very lucky in South Texas as they havebeen able to profit from leasing out their minerals as well as selling them. If you are interestedin selling your mineral rights or royalties it is very easy to get a quote.