Eagle Ford January Crude Output Rises 50% to Fan Texas Oil Boom
Oil production in Texas’s Eagle Ford shale formation climbed 50 percent in January versus a year earlier, boosted by drilling from companies including ConocoPhillips (COP) and Chesapeake Energy Corp. (CHK)
The nine geographic fields that make up the majority of the Eagle Ford yielded 373,303 barrels of crude a day in January, according to preliminary data released by the Texas Railroad Commission, which oversees oil and gas drilling in the state. In January 2012, those fields produced 248,403 barrels a day.
Railroad Commission production totals typically increase in subsequent months as the state receives revised, corrected or late reports. December output was revised to 417,879 barrels a day from the preliminary report of 384,964.
Production of condensates, or natural gas liquids, was 52,703 barrels a day in January, down from 105,861 a year earlier, as drillers moved away from less profitable gas.
EOG Resources Inc. (EOG) is the largest leaseholder in the Eagle Ford play, with 644,000 net acres. Chesapeake is next with 490,000, followed by companies including ConocoPhillips, according to data compiled by Bloomberg.
Growing production out of Eagle Ford is helping fuel a renaissance in Texas crude. The state produced 2.22 million barrels a day in December, the highest monthly level since June 1986, according to the U.S. Energy Department’s Energy Information Administration.
Plains Marketing LP’s posted price for Eagle Ford oil today was $101.12 a barrel, compared with the most recent settlement prices of $93.71 for West Texas Intermediate and $107.66 for Brent.
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