Eagle Ford shale production
The U.S. Energy Information Administration (or EIA) released its Drilling Productivity Report (or DPR) on May 11, 2015. The EIA estimates that the Eagle Ford’s April gas production reached 7.5 billion cubic feet per day (or bcf/d). That’s about the same as production in March and 20.6% higher than a year ago.
Major oil and gas producers in the Eagle Ford shale in South Texas include EOG Resources, Inc. (EOG), Matador Resources Company (MTDR), and Pioneer Natural Resources (PXD). PXD is 1.4% of the iShares U.S. Energy ETF (IYE). EOG is 0.27% of the SPDR S&P 500 ETF (SPY).
According to the EIA, Eagle Ford’s gas production has increased 351% in the past eight years. In April 2015, the region produced 7.53 bcf/d, compared to 1.66 bcf/d in April 2007.
Production per rig
The number of rigs at Eagle Ford decreased to 137 in April, from 157 in March. A year ago, there were 261 drilling rigs in the region.
From April 2007 to April 2015, natural gas production per rig increased from 1.19 million cubic feet per day (or MMcf/d) to 1.73 MMcf/d, an increase of 45%. In the past 12 months to April 2015, production per rig has increased 10%.
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 April 2011. Now they’re down to ~18%.
In the next part of this series, we’ll look at natural gas liquids production in the Utica Shale.