Eagle Ford shale production
The U.S. Energy Information Administration (or EIA) released its Drilling Productivity Report (or DPR) on April 13, 2015. The EIA estimates that the Eagle Ford shale in South Texas produced 7.5 billion cubic feet per day (or Bcf/d) of natural gas in March. This is 1% more than February’s production and 24.3% higher than a year ago.
Major oil and gas producers in the Eagle Ford shale include EOG Resources, Inc. (EOG), Chesapeake Energy Corporation (CHK), and Pioneer Natural Resources (PXD). PXD is 1.5% of the iShares U.S. Energy ETF (IYE). EOG is 0.28% of the SPDR S&P 500 ETF (SPY).
According to the EIA, Eagle Ford’s gas production has increased 354% in the past eight years. In March 2015, the region produced ~7.5 Bcf/d compared to 1.65 Bcf/d in March 2007.
Production per rig
The number of rigs at Eagle Ford decreased to 157 in March, from 192 in February. A year ago, there were 261 drilling rigs in the region.
From March 2007 to March 2015, natural gas production per rig has increased from 1.21 million cubic feet per day (or MMcf/d) to 1.71 MMcf/d, an increase of 41%.
However, there has been a shift from predominantly natural gas–directed rigs to liquids-directed rigs. Natural gas rigs accounted for 56% of the total Eagle Ford rigs in March 2011. Now, they’re down to 12%.
In the next part of this series, we’ll look at natural gas liquids production in the Utica Shale.