Eagle Ford Crude Production Up 76% Over Last Year in October
Chesapeake Energy Corp. (CHK) and other producers increased production in October by 76 percent from a year earlier in South Texas’s Eagle Ford shale formation.
The nine geographic fields that make up the majority of the play yielded 323,098 barrels of crude a day, according to preliminary data released yesterday from the Texas Railroad Commission, which oversees oil and gas drilling. Output was 183,261 barrels a day in October 2011.
The production totals typically increase as the state receives revised, corrected or late reports. August production has been increased twice, to 380,299 barrels a day from the initial estimate of 322,544 two months ago.
September output was amended to 349,862 barrels a day from the initial 324,084.
EOG Resources Inc. (EOG) is the largest leaseholder in the play, with 644,000 net acres. Chesapeake is next with 475,000, according to data compiled by Bloomberg.
Growing production out of Eagle Ford is helping fuel a renaissance in Texas crude. The state produced 2.05 million barrels a day in September, the highest monthly level since March 1988, according to the U.S. Energy Department.
Plains Marketing LP’s posted price for Eagle Ford oil today was $98.75 a barrel, between yesterday’s settlement prices of $87.20 for West Texas Intermediate and $107.64 for Brent.
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