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“By offsetting the
natural declines
through the use
of new recovery
techniques, further
production increases
are possible. . . "
The Eagle Ford has moved
from being capital intensive
and price-driven to technology
intensive and innovation-driven.
C O V E R S T O R Y
oil equivalent in 2015.
Adding to the Eagle Ford’s accolades is the
fact that the area produces the bulk of America’s
condensate, which grew from 178 million barrels
in 2009 to 274 million barrels just three years
later. And with minimally processed condensate
given the nod for export by the U.S. Commerce
Department’s Bureau of Industry and Security
(BIS), the sky seems to be the limit. But then, the
price of crude oil falls. Again and again and again.
Yes, the drop has caused a stutter in the Eagle
Ford rig count. However, the consensus among
international analysts is that not only can the Eagle
Ford weather a prolonged period of lower prices, it
can prosper.
For example, in December, when oil was
trading in the US$60s, global energy researcher
Wood Mackenzie said production would remain
profitable even if prices dropped to around US$49
per barrel.
Analysts at ITG Investment Research Inc. were
even more optimistic, saying that in some areas
of the Bakken, Permian and Eagle Ford, explorers
can drill new wells profitably, even if crude falls to
US$25 a barrel.
So far, the production numbers justify such
rosy outlooks. Oil output across the United States
has continued to rise despite the national rig count
sagging. During the first full week of January, the
EIA reported, production rose by an additional
60,000 barrels per day.
“These increases have occurred despite the
(Eagle Ford) region’s relatively high well decline
rates,” an EIA briefing said. “However, by
offsetting the natural declines through the use
of new recovery techniques, further production
increases are possible.”
As the EIA suggests, the Eagle Ford has moved
from being capital intensive and price-driven to
technology intensive and innovation-driven. As
such, operators have been able to squeeze more
product from those intransigent formations,
and save money in the process. Among the
improvements, better completion techniques
have boosted initial production rates. Tighter
well spacing has helped maximize production
and increase reserves, and altering variables like
the frac fluid and proppant is further building
output. Integrated electrical and control systems
have decreased energy consumption, while
computerized monitoring oversees key process
data, including flow rates, pressures, and leak
detection – really, anything that could stop or slow
production. In short, automation is helping both
Sept. 2013
Source: Energy InformationAdministration
Sept. 2010
PROJECT START DATE
Eagle Ford Well Costs
WELL COST