The Weekly Oil and Gas Update

The Weekly US Oil & Gas Update: 03 December 2013

Todd Erickson
Contributor: Todd Erickson
Posted: 12/02/2013

The Oil & Gas Weekly is compiled by Todd Erickson. Todd is a veteran executive manager in the North American E&P market.

He has management experience in high-growth oil & gas service organizations performing a leadership role in operations, strategy, and corporate development with a track record of identifying opportunities and best-practices, creating execution plans, then developing effective teams and leaders to execute them.

Learn more about Todd here

Rig Counts - select states with key plays

Select states

This Week

Change from last week

3 months ago

One year ago

Alaska

8

-1

14

8

Arkansas

11

0

13

16

California onshore

33

-2

36

31

Colorado

67

-1

66

56

Kansas

30

+2

26

32

Montana

12

-1

12

19

N. Louisiana

27

+2

25

23

New Mexico

78

-1

76

75

North Dakota

168

+1

169

176

Ohio

35

+1

34

26

Oklahoma

175

+3

170

188

Pennsylvania

55

+1

50

70

Texas

834

+3

846

855

Utah

27

-1

29

32

West Virginia

34

-3

36

26

Wyoming

57

+1

49

49

Total US

1763

+2

1776

1811

Total Canada land

384

+17

394

398

Oil & Gas Prices - Bloomberg/EIA

This Morning

12 weeks ago

1 year ago

Crude Oil - USD/bbl

WTI

93.22

109.62

88.69

Brent

110.26

115.20

111.27

Natural Gas-USD/mmbtu

NYMEX

3.90

3.62

3.44

General News

US Shale plays to watch in the coming year

In a RigZone interview with DrillingInfo CEO Allen Gilmer, several shale plays were identified as up and comers that haven't gotten much press. Notable plays included the Chainman in Nevada, in which Cabot, EOG and Noble have activity. Also identified were the part of the Mississipian Lime that lies in eastern Colorado and the re-emergence of the Brown Dense in the northern part of Louisiana. Gilmer also makes a strong assertion that the determining factor for success in a given area can largely be the driller's technology, experience and techniques employed in that specific area, and may not be easily duplicated by others. "If a company drills a well and it produces 1,000 barrels of oil per day, people will say it's because it's good rock. But that's not it, it's something they did."Article here

Eagle Ford roads will not be converted to gravel

Texas counties in the heart of the Eagle Ford earlier reported that they would have to convert numerous paved roads to gravel, since they were unable to fund maintenance costs on the paved roads with the increase truck traffic from oil & gas development. A loud protest from local citizens brought about a different outcome; TxDOT has now agreed to shoulder a portion of the maintenance costs, enabling counties to keep the roads paved. Political pressure at the state level was likely the catalyst for the altered approach, as Democrats made the charge that the Perry Administration wanted to return Texas to 'the nineteenth century'. Article here

Unconventional Oil & Gas News

Per-well productivity dramatically increasing in shale plays

Despite flat rig counts, oil production from new wells has been increasing at a significant rate, according to the EIA's Drilling Productivity Report. The graph on the link below shows that although rig counts have held steady, production measured in barrels per day has increased since 2011, accounting for rising domestic oil production. This is most pronounced in the Bakken play, where companies have continued to refine completions techniques, resulting in a 60% year-over-year growth in production per new well. Article and graphs here

Environment and Safety News

Five workers seriously hurt when tanks explode in Wyoming's Jonah field

The explosion took place at an Encana well site, when five of six condensate tanks exploded while workers were welding. One of the workers is in critical condition, one in serious condition, and two others are in stable condition. The cause of the injury is unknown at this time. Article here

Methane report estimates oil & gas emissions could be 50% higher than EPA estimates

The study utilizes a top-down methodology, with basin-wide air samples, and covers the continental US. This differs with the EPA's methodology that uses a build-up approach, adding together all the specific emission events for an area. Most of the data comes from the 2007 and 2008 time period, which over-states the emissions according to Steve Everley of Energy In Depth, a research group sponsored by the Independent Petroleum Association of America. Everley says that there have been marked improvements in emission-capture since the data was gathered, and "Ignoring a half decade of research and innovation is almost comical," he writes. Article here

Mergers and Acquisitions News

Jones Energy acquires 26,000 acres in the Anadarko Basin

The acquisition includes 92 producing wells and 225 identified drilling locations in the Cleveland, Tonkawas, and Marmaton plays in the Texas Pandhandle and western Oklahoma. Jones paid $195 million for the assets. Article here

Todd Erickson
Contributor: Todd Erickson
Posted: 12/02/2013

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