Liquids-rich and oil plays have clearly won the hearts and dollars of North American producers. The Eagle Ford and Bakken shales are stars now, but several others are poised to join or possibly eclipse them, according to a recent note by Standard & Poor’s Ratings Services (S&P).
Articles from Eagle Ford
Big Oil’s attempt to take over the North American onshore from U.S. independents so far hasn’t paid off as some would have imagined just a few years ago, with the majors still struggling to capture the kind of profits and production results they may have been anticipating.
Australia’s BHP Billiton Ltd. said the Eagle Ford Shale has become the largest producing field in its petroleum and potash division for the year ending June 30, but the company plans to scale back its rig count and spend less on capital expenditures (capex) in the United States in 2014.
After capturing a healthy and growing share of Canadian natural gas consumption with shale production from the United States, exploration and production companies are poised to repeat the feat in oil markets.
At a torch-passing of sorts Wednesday, both outgoing and incoming CEOs for Marathon Oil Corp. had plenty to say about the Bakken and Eagle Ford shale plays, but new CEO Lee Tillman spoke more loudly about future opportunities during a second quarter earnings conference call in which results were said to be up sharply.
Officials with EXCO Resources Inc. said its acquisitions in the Eagle Ford and Haynesville shales during the second quarter were the foundation for future expansion, while its financial position would be bolstered through its joint ventures (JV) with Kohlberg Kravis Roberts & Co. LP (KKR), Harbinger Group Inc. and BG Group plc.
Production of crude oil, condensate, natural gas liquids (NGL) and other liquids was up 30% in 2Q2013 at EOG Resources compared with 2Q2012, and the Houston-based company expects significant increases to come in the full year 2013.
Now that it has seen some encouraging well results, Goodrich Petroleum Inc. is stepping up activity in the Tuscaloosa Marine Shale (TMS) of Louisiana and Mississippi, where the company is about to close on an acquisition that will more than double its footprint in the emerging play.
ConocoPhillips saw its combined production in the Permian Basin, Eagle Ford and Bakken shales nearly double during 2Q2013, and it expects to see future growth from its holdings as it transitions to multi-well pad drilling and experiments with tighter well spacing and hydraulic fracturing (fracking) stages.
The Eagle Ford Shale was the star of SM Energy Co.’s second quarter production story. The Denver-based company grew its average daily operated production in the oily play by 92% over the year-ago quarter. SM Energy is gaining on efficiencies and driving down costs in the South Texas play, executives told analysts following the company.