More background on huge Eagle Ford field

Check out the graph of production in Texas, which shows output …

roughly doubled in just the last three years, from 1.08 million barrels of output per day in September 2009 to 2.05 million barrels per day in September of this year.

That observation and cool graph is from Prof. Perry’s post Eagle Ford Shale: the most profitable oil field in the world with dozens of “monster wells” producing up to 5,000 bpd.

He points to another article by Jennifer Hiller, Finding the sweet spots of the Eagle Ford at Fuel Fix blog.

Two fun tidbits from the post.

Notice the typical cost of a well:

Eagle Ford wells cost $7 million to $10 million, but Yeager said they pay back within half a year.

Check out the rate of return from that $10M bucks:

Becca Followill of U.S. Capital Advisors LLC said companies operating in Gonzales, DeWitt and Karnes counties have seen initial rates of return higher than 50 percent, with some wells as high as a 70 percent.

The post has a good description of the Eagle Ford field. It is about 50 miles wide and 400 miles long. 

There are basically three bands. One is richest in oil, another in natural gas, the third in natural gas liquids.

The formation generally produces more oil on its northern arc; more natural gas, or “dry gas” on its southern arc; and more natural gas liquids such as propane and butane in-between. Wells generally bring up a bit of everything.

Drilling is focused on the oil now with little emphasis on the natural gas. That makes sense with where prices are today. If natural gas prices were to increase, the drillers know where to go.

Check out the posts by Prof. Perry and Ms. Hiller. Great info.

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