Eagle Ford Oil Output Up 49% Amid U.S. Shale RenaissanceDan Murtaugh
EOG Resources Inc. and other companies produced 49 percent more oil from the Eagle Ford shale formation in southern Texas in August than during the same month last year.
The nine fields making up the majority of the Eagle Ford yielded 664,088 barrels of crude a day, according to preliminary data from the Texas Railroad Commission, which oversees oil and gas drilling in the state. The fields yielded 446,372 barrels a day in August 2012.
July output was revised to 672,952 barrels a day from the preliminary report of 569,191, the commission said. Production totals typically increase in subsequent months as the state receives revised, corrected or late reports.
The Port of Corpus Christi, to which much of the Eagle Ford crude is shipped by pipeline, moved out 367,535 barrels of oil a day in August, up 91 percent from the same month in 2012.
The Louisiana Offshore Oil Port, the largest waterborne petroleum import terminal in the U.S., received 139,953 barrels of oil a day from Texas in July, according to the state Department of Natural Resources. LOOP received its first tanker of domestic crude in August 2012 after making modifications to one of its three offshore buoys to allow receipts from smaller domestic vessels, such as those carrying Eagle Ford crude.
Growing production from the Eagle Ford is helping fuel a renaissance in Texas oil. The state produced 2.63 million barrels a day in July, the most since February 1981, according to the Energy Information Administration, the statistical arm of the Energy Department. The EIA hasn’t released July production data for the state.
EOG Resources is the largest leaseholder in the Eagle Ford play, with 639,000 net acres. Chesapeake Energy Corp. is next with 485,000, according to data compiled by Bloomberg.
Plains Marketing LP’s posted price for Eagle Ford light oil was $97.25 a barrel Oct. 17. The price relative to Light Louisiana Sweet strengthened by 90 cents to a discount of $4.46 a barrel, according to data compiled by Bloomberg. The spread has narrowed 83 percent since reaching $26.46 on March 20.
The shale formation yielded 2.87 billion cubic feet of natural gas in August, up 5.4 percent from the previous year. It produced 146,296 barrels of condensate a day, down 12 percent from August 2012.