Target

Natural gas has been the primary target of domestic drilling throughout the past decade, but the focus appears to be shifting to crude oil, according to a report on first quarter well completions issued by the American Petroleum Institute (API). The estimated number of oil wells drilled in the first quarter outnumbered natural gas wells by 5,718 to 3,860, API reported. The figures for oil well completions “show the focus is changing,” the producer group said. While oil and gas well activity was up from the same period in 2010, it was down from 2009, API said. It estimated that 10,431 oil and natural gas wells and dry holes were completed in the most recent first quarter, up 29% from 2010’s first quarter but almost 8% below completions in the first quarter of 2009. API also reported total estimated footage of 75.66 million feet was drilled in the first quarter, a 38% increase from the same period of 2010.

Continuing the downward momentum from the previous week (see Shale Daily, April 11), the number of rigs drilling for oil and gas in U.S. unconventional plays dropped by another 1% for the week ending April 15, according to NGI’s Shale Daily Unconventional Rig Count.

Two more infrastructure projects to target growing crude oil production from the Eagle Ford Shale of South Texas have been announced.

What a difference a year makes in shale gas drilling. NGI’s Shale Daily Unconventional Rig Count dramatically demonstrates the ascendance of oil and oily gas shale plays as the Bakken Shale/Sanish/Three Forks claimed the top spot on the chart for the greatest number of active rigs with 170, up from 102 and third place a year ago.

Liquids production — both crude oil and condensate — is rising significantly at several shale plays in the United States as operators increasingly target the liquids-bearing portions of these formations, according to Austin, TX-based HPDI LLC, a supplier of data on the oil and natural gas industry.

El Paso Corp.’s management team on Thursday said plans are on target to deliver double-digit earnings growth this year, which should be enough to return the company to investment-grade status by 2012.

The natural gas industry has to mount a “relentless campaign” that demonstrates to the stakeholders that “gas is good, gas is good, gas is good,” American Gas Association Chairman Robert C. Skaggs Jr. said last week.

RPM Energy LLC and Kohlberg Kravis Roberts & Co. (KKR) have formed RPM Energy Partners LP to target joint venture opportunities with exploration and production companies in unconventional plays. They offer RPM’s expertise and KKR’s deep pockets.

Energy analysts at Susquehanna Financial Group (SFG) last week reduced their one-year target for domestic exploration and production (E&P) companies because of lower assumed commodity price decks for natural gas.