Continue

EOG Resources’ strategy of the last year to edge away from natural gas exploration and production in order to focus on the more economically viable production of crude oil appears to be paying off as the Houston-based producer posted a 38% increase in second quarter earnings over the previous year’s quarter. The company attributed much of its strong earnings to successful programs on acreage in the South Texas Eagle Ford Shale and North Dakota Bakken Shale.

With the natural gas price slump now being measured in terms of years instead of months, producers continue to pull rigs from dry gas unconventional plays to pursue oil targets, according to NGI’s Shale Daily Unconventional Rig Count.

Pioneer Drilling Co. has changed its name to Pioneer Energy Services Corp. The company’s common stock will continue to trade on the New York Stock Exchange but will trade under the new ticker PES. Pioneer’s website is now www.pioneeres.com. “Over the last five years, we have transformed Pioneer from a pure-play domestic land contract driller to a diversified energy services provider with operations across the United States and in Colombia,” said CEO Wm. Stacy Locke. “Today, approximately 50% of our revenues and operating margin are derived from our production services segment. We operate 102 well servicing rigs, 117 wireline units, 11 coiled tubing units and an array of fishing and rental tools in addition to our 66 drilling rigs. Our core services are heavily concentrated in the Bakken, Eagle Ford, Permian and along the Gulf Coast, both onshore and offshore. This new name reflects who Pioneer is today.”

Houston-based Sanchez Energy Corp.’s proved reserves grew by 125% to 15 million boe during the first half of the year, up from 6.7 million boe at the end of last year, the company said. The company has about 95,000 acres in the Eagle Ford Shale.

Natural gas and oil liquids are expected to expand globally, U.S. energy imports will continue declining and a reordering of the fossil fuel mix in North America will prompt a rethinking of domestic energy policy, according to the authors of a study due out later this summer.

Concerns over natural gas development and its potential to cause earthquakes continue to linger in Johnson County, TX, after the area has experienced about 10 modest quakes during the last month.

An estimated 4,700 gallons of hydrochloric acid (HCL) that were spilled on Wednesday at a Chief Oil & Gas LLC drilling operation in Leroy Township in Bradford County, PA, had been remediated almost entirely by Thursday, officials said.

Hearings continue Wednesday in New Mexico on proposed changes to make the state’s “pit rule” for oil/natural gas drilling more cost effective. Additional hearings are expected to last through Aug. 17 and the Oil Conservation Commission (OCC) has set closing arguments and final deliberation for September, according to staff in the New Mexico Environment Department. An eighth day of hearings was concluded last Thursday with direct testimony from two Oil Conservation Division supervisors who supported modifications in the rule for handling gas and oil drilling production waste (see Daily GPI, May 22) that will result in “clear and unambiguous” requirements. Industry representatives earlier in the hearings said drilling costs are rising to comply with the state rule, while local ranchers and environmental group representatives expressed their concerns about adverse impacts on the environment.

Over the next five years China will more than double its natural gas consumption, while low gas prices continue to support the U.S. economy and the United States becomes a net exporter of liquefied natural gas (LNG), according to the International Energy Agency (IEA). However, a weak economy, growing reliance on renewables and relatively high natural gas prices will limit demand in Europe, IEA said.