Eagle Ford Shale: How it figures in US natural gas production



Eagle Ford Shale production

According to the U.S. Energy Information Administration (or EIA), natural gas production in the Eagle Ford Shale in Texas increased ~343% in the past seven and a half years. In October 2014, the region produced ~7.1 billion cubic feet per day (or Bcf/d), compared to ~1.6 Bcf/d in January 2007.Eagle Ford gas production

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Production per rig

As noted in the chart above, production per rig hasn’t been consistent in the Eagle Ford Shale, particularly in regards to natural gas production.Eagle Ford rig efficiency

From 2011 to 2014, rig counts in the Eagle Ford Shale haven’t changed significantly. There were ~268 in operation in October 2011 and there are currently 295 rigs. However, there has been a shift from predominantly natural gas-directed rigs to liquids-directed rigs. Natural gas rigs accounted for 43% of the total in 2011. Now, they’re down to ~7%.

From January 2007 to October 2014, natural gas production per rig has increased to 1.26 Bcf/d to 1.41 Bcf/d, or by ~12%.

Read more about the Eagle Ford Shale in Why the shale boom transformed US energy markets.

Key stocks and exchange-traded funds (or ETFs)

Major oil and gas producers in the Eagle Ford Shale include EOG Resources, Inc. (EOG), Chesapeake Energy Corporation (CHK), and Pioneer Natural Resources (PXD).

Many producers are also part of the Energy Select SPDR ETF (or XLE) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

In the concluding part of this series, we’ll look at natural gas liquids production in the US.


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