One condition: Capacity needed to get the oil out {TX, Eagle Ford}

San Antonio Express via Houston Chronicle ^ | Feb. 23, 2011, 10:38PM | VICKI VAUGHAN

[thackney]

The Eagle Ford shale, a vast oil and natural gas play in South Texas, will become one of the state's fastest-growing areas for new business and job creation over the next decade, experts said Wednesday.

That's if they can get the oil out. Pipelines already are full, and companies are having to truck it out or ship it by rail.

Jumps in leased acreage and in drilling permits signal the rapid advance of the Eagle Ford as an energy-producing area, experts said at a meeting of the Texas Alliance of Energy Producers in San Antonio.

...

Drilling permits issued jumped to 944 for 2010 from 94 permits issued two years earlier, according to Railroad Commission data.

In 2008, about 1.5 million acres were leased in the Eagle Ford shale. About another 1.5  million acres were leased just in the first half of 2010, the last period for which numbers are available.

The top counties for leasing were Atascosa, LaSalle, Dimmitt and Webb, commission data show. The Eagle Ford underlies 15 counties mostly south and west of San Antonio.

There is little open acreage left in the Eagle Ford, "but there are opportunities for in-fill wells," Hovey said. Companies looking to invest still have a chance to get involved.

"There are still some undercapitalized leaseholders looking for capital." In the coming months, she expects the most activity to come from joint-venture partnerships.

[Frantzie]

Build another pipeline.

[Blood of Tyrants]

Wish I had the money to build a new pipeline.

[thackney]

The pipelines are being built. But the drilling is happening faster.

18 Wheeler tankers cannot get into the local refineries fast enough. We are building truck unloading stations just outside the refinery connected by a short (1/2 mile) pipeline.

[thackney]

It won’t be just one pipeline:

Harvest to build new Eagle Ford crude oil pipeline
http://www.pipelineandgastechnology.com/Construction/CurrentProjects/item75317.php

Koch proposes Eagle Ford crude oil pipeline
http://www.ogj.com/index/article-display/3269130308/articles/oil-gas-journal/transportation-2/pipelines/construction/2010/11/koch-proposes_eagle.html

ETP To Build Eagle Ford Pipeline, Facilities For $300MM
http://www.oilandgasinvestor.com/Midstream-Pipelines/ETP-Build-Eagle-Ford-Pipeline-Facilities-300MM_77456

[thackney]

sound familiar?

ping

[stboz]

Guess who made a big buy in the Niobara Shale?

[blueunicorn6]

Texas...the Bakken...Ohio...maybe we should start selling oil to China to reduce the trade deficit.

[PSYCHO-FREEP]

The USA already exports over 1.8 Million barrels of oil per day.

[OrangeHoof]

Secede or get these anti-energy clowns out of the White House. Texas could be kicking financial ass if it could just get Washington out of its hair.

[Frantzie]

I wonder how long lived these finds will be in Eagle Ford. I think the earth due to heat ends up refilling some old wells slowly. It seems like we have tons of shale, nat gas, coal for diesel, methane and even hydrates in snow permafrost,

[thackney]

maybe we should start selling oil to China

Start?

CNOOC, Chesapeake Close Eagle Ford Deal
http://www.rigzone.com/news/article.asp?a_id=101320

Chesapeake, CNOOC Close Project Cooperation Agreement
http://www.rigzone.com/news/article.asp?a_id=104256&rss=true

to reduce the trade deficit.

Sorry, not part of the plan.

[Paisan]

EOG Resources for example, has estimated Eagle Ford shale reserves of 900,000,000 (nine hundred million) barrels in their roughly 505,000 acres in the oil window.

The US uses 20 million barrels of oil per day. So, these reserves, should the “estimates” prove valid, are good for about 45 days...

[Paisan]

450 days.

[thackney]

The Bakken and the Eagle Ford are each expected to ultimately produce 4 billion barrels of oil.

http://www.foxnews.com/us/2011/02/10/new-drilling-method-opens-vast-oil-fields/#ixzz1E9x1xtAT

The 45 days comment is meaningless. We are not going to shut down all other production and just run on the Eagle Ford. This will last for decades and the estimates keep climbing as more drilling and testing gets done.

[thackney]

Also note that of the 19 MMBPD we use (we have been down from 20 for a couple years) that more than 10% of that is Natural Gas liquids.

http://www.eia.doe.gov/dnav/pet/pet_cons_psup_dc_nus_mbblpd_m.htm

[stevie_d_64]

Piper’s Rule!!!

[thackney]

I know what those (you) prima-donna’s think, I just wish you would produce some drawings.

I’m still waiting two weeks for someone to get CADDing...

(I better throw some winkies in there so I’m not taken too seriously, ;-) ;-) ;-) )

[Smokin' Joe]

"Pipelines already are full, and companies are having to truck it out or ship it by rail."

sound familiar?

And how!

[Smokin' Joe]

Time for soneone to build a modular and mobile topping facility, distill the diesel fraction, market/use it locally for the rigs and haul vehicles, sell it to farmers, etc., and ship the rest as light ends and heavy feedstocks.

It could cut the volume by 40-50% generally, and cut down on the capacity problem while providing fuel locally where useage is intense, at least long enough to build the pipelines.