Convergence of existing technologies initiated rush to Eagle Ford shale

As one of the newest, largest and therefore hottest shale plays, the Eagle Ford shale has come to prominence in just the last three years. It would seem there must have been a leap in technology, in oil and gas prices or something major to have opened the formation's flood gates.

Instead, it seems a convergence of two older technologies -- horizontal/directional drilling and hydraulic fracturing -- has put Eagle Ford in a class by itself, according to Mark Sundland, drilling manager for Anadarko Petroleum. Sundland is scheduled to speak on this subject at the October DUG (Developing Unconventional Gas) Eagle Ford conference in San Antonio hosted by Hart Energy.

"The technology involved in (horizontal drilling) is not really anything new to us," Sundland stated, adding hydraulic fracturing is not new either, having been around since the late 1940s. "It's applying technology that we use for a different style play and applying it to a new geological setting."

Anadarko itself gained great expertise in horizontal drilling 10 years ago when it purchased Union Pacific Resources, a company recognized for its pioneering work in the procedure. That technology was specifically used to develop the Austin Chalk. "We like to say the Austin Chalk was the world's first resource play," Sundland noted.

The ability to develop resource plays instead of the traditional attack point of reservoir plays laid the groundwork for not just the Eagle Ford, but for all shale plays, according to Sundland.

Source: My West Texas 


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South Texas Struggling With Oil Boom

CARRIZO SPRINGS, Texas -- Once sleepy South Texas towns are finding themselves wide awake, caught in the whirlwind of an oil boom.

Residents of Carrizo Springs, formerly a town of just fewer than 6,000 people, are finding empty store shelves and crowded streets that are crumbling under the weight of nearly 3,000 newcomers.

The growth comes courtesy of the development of the Eagle Ford Shale deposit, which has been billed as the next big oil and natural gas play in Texas.

"Like with any growth, there's growing pains," said Dimmit County Commissioner Mike Uriega. "Our infrastructure has been affected; our roads are being torn up."

County roads around Carrizo Springs are now flooded with 18-wheelers, hauling oil and gas out of the area, and more rigs are in the process of going up.

Octavio Rodriguez, who moved to Carrizo Springs to work in the oil fields about 14 months ago, said it looks like the small town couldn't keep up with the pace of the growth.

"Sometimes you get to gas pumps and there's no diesel," said Rodriguez. "You go into the store and it's crowded. People get frustrated and leave."

Experts have said the Eagle Ford appears to be the real deal, which means towns like Carrizo Springs will simply have to adapt and adjust.


Source: KSAT 
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A Crude Crisis?

OPEC's failure to increase output has raised speculation as to whether worldwide supply can meet future demand. Many believe OPEC won't increase output because it can't, and if that's true, where will future supply come from?

Black gold rush
ExxonMobil recently reported the largest discovery in the Gulf of Mexico in the last decade. The company estimates the wells hold approximately 700 million barrels of oil. That's a 35-day oil supply based on current U.S. consumption rates.

Royal Dutch Shell is launching development on a sizable discovery in the Gulf. Last year, the company discovered an oil field capable of producing approximately 140 million barrels over its lifetime. Based on current consumption of roughly 20 million barrels a day, the Shell discovery is enough oil to meet U.S. demand for approximately seven days.

Surprisingly, ATP Oil & Gas is one of the most active drillers in the Gulf. The company ranks fourth in deepwater Gulf of Mexico wellbores and in total, holds 144 million barrels of oil reserves in the region. 

Source: MSNBC

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