Eagle Ford Gas | Russell T. Rudy Energy LLC
Apparently the Eagle Ford shale of South Texas is a microcosm of the domestic energy industry. “World Oil” reports that the same “retreat to the core” strategy is playing out in Karnes County as has been the case across the nation. As prices drop and funds become scarce, shale operators are devoting their remaining cash to the most promising plays. The Eagle Ford shale produces about one-sixth of the nation’s crude oil, and the “Karnes Trough” is the sweet spot of the play.
While “retreat to the core” and the Eagle Ford shale are not new, the concentration of gas drilling rigs in Karnes County is. Production rates from new gas wells have increased 134% according to research firm Drillinginfo. Admittedly, natural gas prices have fallen, right along with those for crude, but just not as much.
Chris Smith with Drillinginfo says of Karnes County, “This is top tier acreage. In this pricing environment, a lot of rigs still active would be moving toward that core area.” In fact 24 rigs are looking for gas there, as opposed to 19 in June of this year.
To read the article in its entirety, please go to http://www.rigzone.com/news/article_pf.asp?a_id=141141 .
