Plains All American To Build New Oil Pipeline in Texas

Plains All American Pipeline LP is building a new pipeline to bring oil from an increasingly fruitful West Texas field to the Corpus Christi and Houston refining markets, the company said Monday.

The pipeline, called the Cactus pipeline, is expected to start shipping up to 200,000 barrels of day of oil in the first quarter of 2015. It would be the latest venture allowing oil producers in West Texas' Permian Basin to send their crude directly to the U.S. Gulf Coast refining belt.

Plains expects the 310-mile pipeline, with an expected cost of up to $375 million, to carry sweet and sour crude to Texas coast. By avoiding the oil transport hub in Cushing, Okla., producers hope to avoid the glut there that has helped depress prices on oil from Cushing.

Plains said it has entered into a letter of intent with a third party regarding a long-term commitment for a majority of the Cactus pipeline's capacity and is in discussions with several potential shippers for the remaining capacity. The pipeline company did not identify the company which has made the commitment or the companies with which Plains has had negotiations.

Several companies have been attracted by the idea of delivering West Texas crude directly to the refineries that dot the U.S. coast of Gulf of Mexico. Sunoco Logistics Partners started shipping such crudes to the Houston area on its Permian Express pipeline in the first quarter. Around the same time, Magellan Midstream Partners LP (MMP) reversed its Longhorn Express pipeline to ship crude from the Permian Basin to Houston.

Plains noted that crude oil delivered through the Cactus pipeline will have access to rail-loading capacity at the Gardendale, Texas, station operated by Plains All American and access to the Eagle Ford barge-dock facility in the Corpus Christi area.

The pipeline company added that the Cactus pipeline capacity can be increased as demand warrants.

Plains has experienced strong demand as it benefits from a huge boost in the U.S. supply of onshore oil.

The company, which transports, stores and sells oil, receives fees for many of its services, so it is less affected by the volatility of oil and gas prices.

Copyright (c) 2013 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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LoneStar Geophysical Surveys Opens New Office in Texas

LoneStar Geophysical Surveys, a professional seismic data acquisition company, has just opened their new branch office in Houston, TX in order to offer a more specialized service for U.S. operations in the oil and gas industry.

Just few months prior, LoneStar Geophysical Surveys employed Mr. R. Doak Anderson to lead the team for account representation for the Houston branch, and who has also been considered to be a key player in his field within the E&P industry.

The new premises are located in the Central Business District of Houston at the Two Allen Center, off Smith Street; which offers an excellent logistic support to the oil and gas conglomerates affixed in the market area operationally. LoneStar Geophysical Surveys has a very solid structure to offer many solutions at every single step of an acquisition as LoneStar Geophysical Surveys has its own departments for Seismic Acquisition, HSE Management, Permitting, Surveying, and Project Design including Environmental elucidations.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Eagle Ford Impact on South Texas to Keep Growing

Eagle Ford shale play activity in 2012 had an economic impact of $46 billion and supported over 86,000 jobs in the 14-county area in South Texas where Eagle Ford activity is more active, counties in South Texas, according to a report from UTSA's Center for Community and Business Research (CCBR).

The new study includes a 2012 update of direct, indirect and induced economic impacts by county in the 14-county and 20-county regions of the Eagle Ford shale. The report also provides a more comprehensive analysis of the economic impact in the Eagle Ford in regards to construction projects completed in 2012, crude oil transportation infrastructure, impacts on Texas Gulf Coast, impacts on Texas high education, innovations and advancements in natural gas applications, increases in county sales taxes, and pipeline construction costs.

The Eagle Ford shale's economic impact on South Texas in 2022 is estimated to grow to over $61 billion and support 89,000 jobs, according to the CCBR's latest study. The latest study released by CCBR focuses specifically on the impacts of 14 counties that are most active in the Eagle Ford play. These include Atascosa, Bee, DeWitt, Dimmit, Frio Gonzales, Karnes, La Salle, Live Oak, Maverick, McMullen, Webb, Wilson and Zavala.

Other impacts of Eagle Ford activity on the 14-county region include:

Roughly $3.3 billion in salaries and benefits paid to workersOver $800 million in local government revenuesState revenues including severance taxes are estimated at around $374 millionOver $22 billion in gross regional product (value added) impacts

However, significant activity beyond Eagle Ford exploration and drilling is occurring in six adjacent counties and are included in the analysis: Bexar, Jim Wells, Nueces, San Patricio, Uvalde and Victoria. In the larger 20-county area, Eagle Ford activity created over $61 billion in economic impact and supported 116,000 jobs last year. In 2022, the Eagle Ford's economic impact is estimated to grow to over $89 billion and support 127,000 jobs.

The Eagle Ford's impacts on the larger 20-county region in South Texas include:

$3.69 billion in payroll$28.43 billion in gross regional product (value added)$1.01 billion in total local revenues$1.24 billion estimated state revenue

Out of the top 10 industries within the Eagle Ford play in 2022, oil and gas extraction, support activities for oil and gas operations and drilling oil and gas wells will rank among the top three industries. The oil and gas extraction industry will have a total output of approximately $32 billion in 2022.

The CCBR in May 2012 released a study of the economic impact of the Eagle Ford which focused on production, drilling and related activities. In October 2012, the "Eagle Ford Shale Impact for Counties with Active Drilling" report provided a detailed image of challenges and opportunities emerging from drilling and production activities in South Texas.

CCBR also released in October of last year the report, "Workforce Analysis of the Eagle Ford Shale", which analyzed the impact of the Eagle Ford shale on the workforce of 20 South Texas counties and focused on occupational and workforce impacts including short term and long term effects on the region's workforce.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Eagle Ford Impact on South Texas to Keep Growing

Eagle Ford shale play activity in 2012 had an economic impact of $46 billion and supported over 86,000 jobs in the 14-county area in South Texas where Eagle Ford activity is more active, counties in South Texas, according to a report from UTSA's Center for Community and Business Research (CCBR).

The new study includes a 2012 update of direct, indirect and induced economic impacts by county in the 14-county and 20-county regions of the Eagle Ford shale. The report also provides a more comprehensive analysis of the economic impact in the Eagle Ford in regards to construction projects completed in 2012, crude oil transportation infrastructure, impacts on Texas Gulf Coast, impacts on Texas high education, innovations and advancements in natural gas applications, increases in county sales taxes, and pipeline construction costs.

The Eagle Ford shale's economic impact on South Texas in 2022 is estimated to grow to over $61 billion and support 89,000 jobs, according to the CCBR's latest study. The latest study released by CCBR focuses specifically on the impacts of 14 counties that are most active in the Eagle Ford play. These include Atascosa, Bee, DeWitt, Dimmit, Frio Gonzales, Karnes, La Salle, Live Oak, Maverick, McMullen, Webb, Wilson and Zavala.

Other impacts of Eagle Ford activity on the 14-county region include:

Roughly $3.3 billion in salaries and benefits paid to workersOver $800 million in local government revenuesState revenues including severance taxes are estimated at around $374 millionOver $22 billion in gross regional product (value added) impacts

However, significant activity beyond Eagle Ford exploration and drilling is occurring in six adjacent counties and are included in the analysis: Bexar, Jim Wells, Nueces, San Patricio, Uvalde and Victoria. In the larger 20-county area, Eagle Ford activity created over $61 billion in economic impact and supported 116,000 jobs last year. In 2022, the Eagle Ford's economic impact is estimated to grow to over $89 billion and support 127,000 jobs.

The Eagle Ford's impacts on the larger 20-county region in South Texas include:

$3.69 billion in payroll$28.43 billion in gross regional product (value added)$1.01 billion in total local revenues$1.24 billion estimated state revenue

Out of the top 10 industries within the Eagle Ford play in 2022, oil and gas extraction, support activities for oil and gas operations and drilling oil and gas wells will rank among the top three industries. The oil and gas extraction industry will have a total output of approximately $32 billion in 2022.

The CCBR in May 2012 released a study of the economic impact of the Eagle Ford which focused on production, drilling and related activities. In October 2012, the "Eagle Ford Shale Impact for Counties with Active Drilling" report provided a detailed image of challenges and opportunities emerging from drilling and production activities in South Texas.

CCBR also released in October of last year the report, "Workforce Analysis of the Eagle Ford Shale", which analyzed the impact of the Eagle Ford shale on the workforce of 20 South Texas counties and focused on occupational and workforce impacts including short term and long term effects on the region's workforce.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Eagle Ford Impact on South Texas to Keep Growing

Eagle Ford shale play activity in 2012 had an economic impact of $46 billion and supported over 86,000 jobs in the 14-county area in South Texas where Eagle Ford activity is more active, counties in South Texas, according to a report from UTSA's Center for Community and Business Research (CCBR).

The new study includes a 2012 update of direct, indirect and induced economic impacts by county in the 14-county and 20-county regions of the Eagle Ford shale. The report also provides a more comprehensive analysis of the economic impact in the Eagle Ford in regards to construction projects completed in 2012, crude oil transportation infrastructure, impacts on Texas Gulf Coast, impacts on Texas high education, innovations and advancements in natural gas applications, increases in county sales taxes, and pipeline construction costs.

The Eagle Ford shale's economic impact on South Texas in 2022 is estimated to grow to over $61 billion and support 89,000 jobs, according to the CCBR's latest study. The latest study released by CCBR focuses specifically on the impacts of 14 counties that are most active in the Eagle Ford play. These include Atascosa, Bee, DeWitt, Dimmit, Frio Gonzales, Karnes, La Salle, Live Oak, Maverick, McMullen, Webb, Wilson and Zavala.

Other impacts of Eagle Ford activity on the 14-county region include:

Roughly $3.3 billion in salaries and benefits paid to workersOver $800 million in local government revenuesState revenues including severance taxes are estimated at around $374 millionOver $22 billion in gross regional product (value added) impacts

However, significant activity beyond Eagle Ford exploration and drilling is occurring in six adjacent counties and are included in the analysis: Bexar, Jim Wells, Nueces, San Patricio, Uvalde and Victoria. In the larger 20-county area, Eagle Ford activity created over $61 billion in economic impact and supported 116,000 jobs last year. In 2022, the Eagle Ford's economic impact is estimated to grow to over $89 billion and support 127,000 jobs.

The Eagle Ford's impacts on the larger 20-county region in South Texas include:

$3.69 billion in payroll$28.43 billion in gross regional product (value added)$1.01 billion in total local revenues$1.24 billion estimated state revenue

Out of the top 10 industries within the Eagle Ford play in 2022, oil and gas extraction, support activities for oil and gas operations and drilling oil and gas wells will rank among the top three industries. The oil and gas extraction industry will have a total output of approximately $32 billion in 2022.

The CCBR in May 2012 released a study of the economic impact of the Eagle Ford which focused on production, drilling and related activities. In October 2012, the "Eagle Ford Shale Impact for Counties with Active Drilling" report provided a detailed image of challenges and opportunities emerging from drilling and production activities in South Texas.

CCBR also released in October of last year the report, "Workforce Analysis of the Eagle Ford Shale", which analyzed the impact of the Eagle Ford shale on the workforce of 20 South Texas counties and focused on occupational and workforce impacts including short term and long term effects on the region's workforce.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

ZaZa to Sell Texas Acreage

ZaZa Energy, LLC, a wholly-owned subsidiary of ZaZa Energy Corporation, announced that it has entered into a purchase and sale agreement to sell approximately 10,000 net acres of the Company's properties located in Fayette, Gonzalez and Lavaca Counties, Texas, which the Company refers to as its Moulton properties. This transaction includes all of the Company's interest in seven producing wells located in Moulton. The total cash purchase price for the approximately 10,000 net acres and associated production is approximately $43.3 million. The closing of the sale is expected to occur during the second quarter of 2013 and net proceeds from the sale, after customary closing purchase price adjustments and expenses, are expected to be ~$42 million. The closing is subject to normal closing conditions and the amendment of ZaZa's securities purchase agreement for its senior secured notes.

The Company also announced that it has executed a purchase and sale agreement to sell the remaining acreage in its Moulton properties for approximately $9.2 million. This transaction is also expected to close during the second quarter of 2013 and is subject to normal closing conditions.

Commenting on the announcement, Todd A. Brooks, president and CEO of ZaZa stated, "As part of the Hess division of assets in 2012, we received cash and a significant amount of acreage in the Eagle Ford play. We are in the process of monetizing select assets in order to improve our balance sheet and high grade our resource base with a focus on the Eaglebine. We believe these independent transactions are a testament to the strength of our technical and land teams, as we originally evaluated and leased this acreage in a short period of time for the benefit of our Eagle Ford joint venture."

ZaZa intends to use the net proceeds from both transactions to fund a portion of capital expenditures for exploration on its other properties and further reduce the principal amount of its senior secured notes.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

STEER to Guide Oil, Gas Industry Integration in South Texas

The Eagle Ford shale play has transformed the South Texas landscape since Petrohawk Energy Corp. drilled the first Eagle Ford well in 2008. The Eagle Ford was named for a small town west of Dallas where the shale is visible on the surface as clay oil, and stretches from the Mexican border to East Texas. But new applications of hydraulic fracturing and horizontal drilling have unlocked Eagle Ford shale production the South Texas region.

Oil production from the Eagle Ford shale has grown from 358 barrels of oil per day (bopd) to 338,911 bopd in 2012, and condensate production has increased from 1,423 bopd in 2009 to 72,126 bopd last year. Natural gas production also grew in the Eagle Ford from 8 million cubic feet per day (MMcf/d) to 964 MMcf/d in 2012.

The Eagle Ford's success has primarily been due to its greater productivity compared with other traditional shale plays. Oil revenues and petroleum liquids production across the play also are supporting economic development even in a time of low U.S. natural gas prices, according to a March 13 report by the Eagle Ford Shale Task Force. With 235 rigs running in the play, the Eagle Ford could potentially become the most active oil and gas play in North America, with operators forecasting exploration and production activity to continue developing in the coming decades.

The Eagle Ford boom has brought jobs and economic growth to South Texas. In 2011, the Eagle Ford supported nearly 50,000 full-time jobs in 20 counties and contributed more than $25 billion to the South Texas economy, the Eagle Ford Shale Task Force reported. Earlier this year, Wood Mackenzie reported that oil and gas companies will spend $28 billion in capital expenditures (CAPEX) this year in the Eagle Ford, and expects Eagle Ford CAPEX from 2012 to 2015 to exceed the entire $116 billion Kashagan project in Kazakhstan, the world's most expensive standalone energy project.

However, the influx of oil and gas workers to the region has also strained local infrastructure, such as roads and medical services, and raised issues such as driver safety on South Texas roads, concerns about water usage, air emissions, landowner issues and the impact of hydraulic fracturing. These challenges have highlighted the need to plan for the region's future needs, including a sustainable workforce development and a sustainable housing plan for the Eagle Ford region.

To address issues surrounding development of the Eagle Ford shale and better integrate the oil and gas industry in the South Texas region, 11 of the largest Eagle Ford shale operators have founded the South Texas Energy and Economic Roundtable (STEER), with new offices in San Antonio.

Rigzone recently interviewed Omar Garcia, who will serve as president of STEER, to learn more about the organization.

STEER President Omar Garcia Source: South Texas Energy and Economic Roundtable (STEER).

Rigzone: You have extensive experience in economic and business development in the South Texas region. Before the Eagle Ford shale, what was the business climate like in South Texas? What was the difficulty level in recruiting/retaining businesses to the area?

Garcia: During my time with the Economic Development Foundation in San Antonio and the Economic Development Corporation in Corpus Christi, business and economic growth and development were steady in the Eagle Ford region. Retention of companies wasn’t a significant challenge as the local organizations understood the potential and the benefits of the area, while recruitment numbers also remained close to national averages. However, the activity associated with the Eagle Ford Shale has propelled that growth and development to an entirely new, unprecedented level, that is booming in comparison to both the region, as it were, and most of the United States today.

That is in large part why STEER was developed -- to help support positive developments that are beneficial for the communities that have nurtured and maintained this region for decades, and to help to successfully integrate the industry into the region.

Rigzone: What do you see as the biggest challenges for South Texas and the Eagle Ford play? Obviously, getting oil and gas companies to come to the region is not an issue, but are there other businesses that need to be attracted to the region to meet the growing population?

Garcia: There are some challenges that are important to address as activity surrounding the Eagle Ford Shale continues, including the recruitment of skilled labor, availability of housing, healthcare services and infrastructure. As an organization, STEER will help to ensure those topics are addressed by encouraging dialogue, providing resources and information and acting as a conduit to bridge communities and the oil and natural gas industry.

With the growth of the Eagle Ford Shale, there is a new need in the region for the expansion and development of many novel industries to support the shale activity, which is creating tremendous economic development opportunities for local companies. Those support industries include retail, the hospitality sector, construction and, perhaps most significantly, development of medical facilities.

This ripple effect creates holistic community growth that can be sustained across various industries – an effect that is already having a hugely positive impact on the local communities who are benefiting from the new economic prospects.

Rigzone: Had there been oil and gas exploration in South Texas prior to the Eagle Ford? If so, how does this compare with the Eagle Ford shale, and how has the Eagle Ford changed the South Texas landscape?

Garcia: Historically, there has been oil and gas drilling and exploration in South Texas, but never of this magnitude. The oil and natural gas industry has become one of the most fundamental economic drivers in the region since the discovery of the Eagle Ford Shale in 2008. To put it into perspective, this shale is considered to be one of the most noteworthy oil and natural gas discoveries ever found in the state, and is currently one of the most active shale plays in the world. The Eagle Ford Shale has truly redefined South Texas, and even the domestic oil and natural gas landscape as a whole.

Rigzone: What have been some of the issues that have cropped up with the Eagle Ford shale? How has this activity impacted the local community? What about relations with the local communities and state officials?

Garcia: The challenges that South Texas faces as a result of this incredible activity relate namely to infrastructure needs and environmental considerations. Along with rapid growth and expansive development comes a need to adapt and develop infrastructure in a given area, and many communities in the region are seeing an increased need to address this growth. STEER was initiated to help recognize those challenges, and ensure that both the industry and communities are able to learn about these challenges and communicate effectively to facilitate the development of positive solutions.

In terms of environmental concerns, there is a large portion of the population, nationally, that may not understand the complexities and demands of the regulatory institutions in this region. The oil and natural gas industry is one of the most heavily regulated industries in the country, and is subject to federal, state and local regulations that oversee all aspects of the industry, from initial permitting to wastewater disposal.

STEER is connecting the oil and natural gas industry with local officials, regulatory bodies, legislature and South Texas Communities to help bridge any gaps in communication or understanding surrounding the Eagle Ford Shale in the region.

Rigzone: What has prompted the decision to establish this group now? Have other groups been established/attempted? Do you anticipate companies besides the 11 initially involved to join anytime soon?

Garcia: STEER was established by 11 of the largest operators in the Eagle Ford Shale region including: Anadarko, Chesapeake Energy Corporation, ConocoPhillips, EOG Resources, Lewis Energy Group, Marathon Oil, Murphy Oil, Pioneer Natural Resources, Shell, Statoil and Talisman Energy.

The operators saw a need in South Texas to maintain a cohesive and collaborative stakeholder relations effort throughout the Eagle Ford Shale and developed STEER to lead that initiative.

There are truly no other groups like STEER; we are the first regional oil and natural gas trade association that is specifically focused on South Texas.

STEER does have an established membership program we do anticipate other organizations becoming involved with STEER in the future and growing our membership base.

Rigzone: What kind of communication pathways were being used by oil and gas companies to state officials and local communities? Why do you think these were not effective?

Garcia: Prior to the development of STEER, the individual member companies did a great job communicating with officials, communities, academia and beyond. STEER was founded to be an interconnected and collective resource for the region as related to the Eagle Ford shale. The purpose of STEER is to serve as channel for both intra-organizational communication, to ensure that operators are sharing information and resources with one another for the betterment and enhancement of the communities and the industry, and also to be a resource for external communication – to be the recipient and facilitator for questions, inquiries and information.

Rigzone: What kind of strategies will you employ to address the challenges of infrastructure?

Garcia: STEER is committed to staying informed and educated about all challenges and issues as they relate to the Eagle Ford Shale, including infrastructure. With that, we will continue to act as a resource to help the industry and the communities to understand these challenges in order to make positive solutions for the region. STEER’s purpose is to gather and share resources and information in order to help inform stakeholders about challenges.

Rigzone: Some international companies have acquired interests in the Eagle Ford shale. What kind of challenges come with having international companies in the region?

Garcia: We welcome the international investment and attention that the Eagle Ford Shale has helped bring to Texas. These companies are working toward developing a comprehensive understanding of the region and the industry, and STEER is here to help serve as the conduit between these companies, industry and the communities of South Texas.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

STEER to Guide Oil, Gas Industry Integration in South Texas

The Eagle Ford shale play has transformed the South Texas landscape since Petrohawk Energy Corp. drilled the first Eagle Ford well in 2008. The Eagle Ford was named for a small town west of Dallas where the shale is visible on the surface as clay oil, and stretches from the Mexican border to East Texas. But new applications of hydraulic fracturing and horizontal drilling have unlocked Eagle Ford shale production the South Texas region.

Oil production from the Eagle Ford shale has grown from 358 barrels of oil per day (bopd) to 338,911 bopd in 2012, and condensate production has increased from 1,423 bopd in 2009 to 72,126 bopd last year. Natural gas production also grew in the Eagle Ford from 8 million cubic feet per day (MMcf/d) to 964 MMcf/d in 2012.

The Eagle Ford's success has primarily been due to its greater productivity compared with other traditional shale plays. Oil revenues and petroleum liquids production across the play also are supporting economic development even in a time of low U.S. natural gas prices, according to a March 13 report by the Eagle Ford Shale Task Force. With 235 rigs running in the play, the Eagle Ford could potentially become the most active oil and gas play in North America, with operators forecasting exploration and production activity to continue developing in the coming decades.

The Eagle Ford boom has brought jobs and economic growth to South Texas. In 2011, the Eagle Ford supported nearly 50,000 full-time jobs in 20 counties and contributed more than $25 billion to the South Texas economy, the Eagle Ford Shale Task Force reported. Earlier this year, Wood Mackenzie reported that oil and gas companies will spend $28 billion in capital expenditures (CAPEX) this year in the Eagle Ford, and expects Eagle Ford CAPEX from 2012 to 2015 to exceed the entire $116 billion Kashagan project in Kazakhstan, the world's most expensive standalone energy project.

However, the influx of oil and gas workers to the region has also strained local infrastructure, such as roads and medical services, and raised issues such as driver safety on South Texas roads, concerns about water usage, air emissions, landowner issues and the impact of hydraulic fracturing. These challenges have highlighted the need to plan for the region's future needs, including a sustainable workforce development and a sustainable housing plan for the Eagle Ford region.

To address issues surrounding development of the Eagle Ford shale and better integrate the oil and gas industry in the South Texas region, 11 of the largest Eagle Ford shale operators have founded the South Texas Energy and Economic Roundtable (STEER), with new offices in San Antonio.

Rigzone recently interviewed Omar Garcia, who will serve as president of STEER, to learn more about the organization.

STEER President Omar Garcia Source: South Texas Energy and Economic Roundtable (STEER).

Rigzone: You have extensive experience in economic and business development in the South Texas region. Before the Eagle Ford shale, what was the business climate like in South Texas? What was the difficulty level in recruiting/retaining businesses to the area?

Garcia: During my time with the Economic Development Foundation in San Antonio and the Economic Development Corporation in Corpus Christi, business and economic growth and development were steady in the Eagle Ford region. Retention of companies wasn’t a significant challenge as the local organizations understood the potential and the benefits of the area, while recruitment numbers also remained close to national averages. However, the activity associated with the Eagle Ford Shale has propelled that growth and development to an entirely new, unprecedented level, that is booming in comparison to both the region, as it were, and most of the United States today.

That is in large part why STEER was developed -- to help support positive developments that are beneficial for the communities that have nurtured and maintained this region for decades, and to help to successfully integrate the industry into the region.

Rigzone: What do you see as the biggest challenges for South Texas and the Eagle Ford play? Obviously, getting oil and gas companies to come to the region is not an issue, but are there other businesses that need to be attracted to the region to meet the growing population?

Garcia: There are some challenges that are important to address as activity surrounding the Eagle Ford Shale continues, including the recruitment of skilled labor, availability of housing, healthcare services and infrastructure. As an organization, STEER will help to ensure those topics are addressed by encouraging dialogue, providing resources and information and acting as a conduit to bridge communities and the oil and natural gas industry.

With the growth of the Eagle Ford Shale, there is a new need in the region for the expansion and development of many novel industries to support the shale activity, which is creating tremendous economic development opportunities for local companies. Those support industries include retail, the hospitality sector, construction and, perhaps most significantly, development of medical facilities.

This ripple effect creates holistic community growth that can be sustained across various industries – an effect that is already having a hugely positive impact on the local communities who are benefiting from the new economic prospects.

Rigzone: Had there been oil and gas exploration in South Texas prior to the Eagle Ford? If so, how does this compare with the Eagle Ford shale, and how has the Eagle Ford changed the South Texas landscape?

Garcia: Historically, there has been oil and gas drilling and exploration in South Texas, but never of this magnitude. The oil and natural gas industry has become one of the most fundamental economic drivers in the region since the discovery of the Eagle Ford Shale in 2008. To put it into perspective, this shale is considered to be one of the most noteworthy oil and natural gas discoveries ever found in the state, and is currently one of the most active shale plays in the world. The Eagle Ford Shale has truly redefined South Texas, and even the domestic oil and natural gas landscape as a whole.

Rigzone: What have been some of the issues that have cropped up with the Eagle Ford shale? How has this activity impacted the local community? What about relations with the local communities and state officials?

Garcia: The challenges that South Texas faces as a result of this incredible activity relate namely to infrastructure needs and environmental considerations. Along with rapid growth and expansive development comes a need to adapt and develop infrastructure in a given area, and many communities in the region are seeing an increased need to address this growth. STEER was initiated to help recognize those challenges, and ensure that both the industry and communities are able to learn about these challenges and communicate effectively to facilitate the development of positive solutions.

In terms of environmental concerns, there is a large portion of the population, nationally, that may not understand the complexities and demands of the regulatory institutions in this region. The oil and natural gas industry is one of the most heavily regulated industries in the country, and is subject to federal, state and local regulations that oversee all aspects of the industry, from initial permitting to wastewater disposal.

STEER is connecting the oil and natural gas industry with local officials, regulatory bodies, legislature and South Texas Communities to help bridge any gaps in communication or understanding surrounding the Eagle Ford Shale in the region.

Rigzone: What has prompted the decision to establish this group now? Have other groups been established/attempted? Do you anticipate companies besides the 11 initially involved to join anytime soon?

Garcia: STEER was established by 11 of the largest operators in the Eagle Ford Shale region including: Anadarko, Chesapeake Energy Corporation, ConocoPhillips, EOG Resources, Lewis Energy Group, Marathon Oil, Murphy Oil, Pioneer Natural Resources, Shell, Statoil and Talisman Energy.

The operators saw a need in South Texas to maintain a cohesive and collaborative stakeholder relations effort throughout the Eagle Ford Shale and developed STEER to lead that initiative.

There are truly no other groups like STEER; we are the first regional oil and natural gas trade association that is specifically focused on South Texas.

STEER does have an established membership program we do anticipate other organizations becoming involved with STEER in the future and growing our membership base.

Rigzone: What kind of communication pathways were being used by oil and gas companies to state officials and local communities? Why do you think these were not effective?

Garcia: Prior to the development of STEER, the individual member companies did a great job communicating with officials, communities, academia and beyond. STEER was founded to be an interconnected and collective resource for the region as related to the Eagle Ford shale. The purpose of STEER is to serve as channel for both intra-organizational communication, to ensure that operators are sharing information and resources with one another for the betterment and enhancement of the communities and the industry, and also to be a resource for external communication – to be the recipient and facilitator for questions, inquiries and information.

Rigzone: What kind of strategies will you employ to address the challenges of infrastructure?

Garcia: STEER is committed to staying informed and educated about all challenges and issues as they relate to the Eagle Ford Shale, including infrastructure. With that, we will continue to act as a resource to help the industry and the communities to understand these challenges in order to make positive solutions for the region. STEER’s purpose is to gather and share resources and information in order to help inform stakeholders about challenges.

Rigzone: Some international companies have acquired interests in the Eagle Ford shale. What kind of challenges come with having international companies in the region?

Garcia: We welcome the international investment and attention that the Eagle Ford Shale has helped bring to Texas. These companies are working toward developing a comprehensive understanding of the region and the industry, and STEER is here to help serve as the conduit between these companies, industry and the communities of South Texas.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Brenham Oil, Gas Adds Working Interest in Texas Field

Brenham Oil & Gas Corp., a majority owned subsidiary of American International Industries, Inc., (AMIN) (American), announced it acquired a 10 percent working interest in the Pierce Junction Oil & Gas Field in Houston, Texas.

"The Pierce Junction field is one of the oldest and most prolific fields in the Houston area. This field has been producing oil & gas since 1921 and has produced over 104 million barrels of oil since that time mostly from Miocene, Frio, and Vicksburg reservoirs," Bryant Mook, Brenham's recently elected president, stated.

Brenham's asset acquisition includes eight producing wells with an additional seven wells scheduled for mechanical work-over that should add more oil reserves to Brenham. Additional offsetting acreage can be developed by Brenham on a well by well basis to produce additional oil reserves from several producing horizons.

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Greene's Energy Group Opens New Texas Facilities

Greene's Energy Group, a leading provider of integrated testing, rentals and specialty services, has opened two new facilities in Alice and Pleasanton, Texas, announced Chief Executive Officer (CEO) Bob Vilyus.

These facilities serve Central and South Texas with emphasis on the Eagle Ford Shale. As state-of-the-art facilities, each are outfitted with warehouse and office amenities designed to accommodate the needs of the industry in the region.

The Alice facility is the headquarters for the Greene's Well Testing Services. The facility is comprised of a three-bay warehouse on three acres of land with a wash rack, large conference room, break room and five offices.

The facility in Pleasanton has a five-bay warehouse on ten acres that is equipped with a wash rack, break room, large conference room and five offices and is the base for Greene's Well Testing and Torque and Testing Services.

"Because both facilities are centrally located in South Texas and can easily access the Eagle Ford Shale region, we see a strong growth potential for both facilities," said Vilyus. "As we look to expand to other geographical regions, these facilities will serve as blueprints for future expansions."

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Energy Boom Helps Fuel West Texas, Great Plains Population Growth

The boom in Bakken and Permian Basin oil and gas activity helped fuel population growth in North Dakota and Texas from 2011 to 2012, the U.S. Census Bureau reported Thursday.

Midland, Texas ranked as the fastest-growing metro area from July 1, 2011 to July 1, 2012, with population growth of 4.6 percent. Neighboring Odessa, Texas, ranked fifth, with Casper and Cheyenne, Wyo., and Bismarck, N.D. ranked among the top 20 fastest-growing metropolitan areas.

"After a long period of out-migration, some parts of the Great Plains – from just south to the Canadian border all the way down to West Texas –are experiencing rapid population growth," said Thomas Mesenbourg, the Census Bureau's senior adviser and acting director, in a statement. "There are probably many factors fueling this growth on the prairie, but no doubt the energy boom is playing a role. For instance, the Permian Basin, located primarily in West Texas, and North Dakota accounted for almost half of the total U.S. growth in firms that mine or extract oil and gas, during a recent one-year period."

In micropolitan areas, which contain an urban cluster of between 10,000 and 49,999 people, Williston, N.D. topped the list of fastest-growing cities with 9.3 percent. Dickinson, N.D. ranked third among fastest-growing micropolitan areas with 6.5 percent.

Eleven Texas counties ranked among the 50 fastest-growing as well as among the 50 highest numeric gainers from July 1, 2011 through July 1, 2012. Bexar County, which encompasses San Antonio and close to the core South Texas counties impacted by Eagle Ford shale activity, ranked 11th among the largest numeric gainers in this timeframe, a U.S. Census Bureau spokesperson told Rigzone in an email.

Dimmitt County, located on the Texas-Mexico border, ranked 20th on the list of U.S. counties that experienced the largest percentage gain in population from 2011 to 2012. Guadalupe County, just east of San Antonio, ranked 49th among the counties nationwide with the largest percent gain in population.

Two North Dakota counties, Williams and Stark, ranked among the five fastest-growing counties with populations of 10,000 or more.

Exploration and production activity from Permian Basin and Eagle Ford helped bolster Texas oil production to nearly 1.5 million barrels of oil per day, an almost 50 percent increase in crude oil production since 2011, Texas Railroad Commissioner Christi Craddick said in a Feb. 28 statement. Craddick added that Texas now represents nearly a fourth of total U.S. crude oil production, and noted that the oil and gas energy sector created 427,761 jobs in Texas and paid $9.25 billion in state taxes in 2011.

The surge in exploration and production (E&P) activity in the Eagle Ford supported nearly 50,000 full-time jobs in 20 counties and contributed more than $25 billion to the South Texas economy, according to a March 13 report by the Eagle Ford Shale Task Force. However, the surge in E&P activity has created infrastructure challenges for South Texas, including the need for a sustainable housing plan for the region and roads wearing down from greater traffic.

The Permian Basin continues to play a significant role in Texas oil production as the increased use of enhanced oil recovery practices in the Permian Basin has substantially impacted U.S. oil production. More than 270 million barrels of oil were produced in the Permian Basin in 2010, and over 280 million barrels of oil were produced in 2011, according to the Texas Railroad Commission.

In 2011, North Dakota was the fourth largest crude oil producing U.S. state, accounting for more than 7 percent of U.S. oil production, according to the U.S. Energy Information Administration (EIA). A 35 percent increase in production from 2010 to 2011 was primarily driven by horizontal drilling and hydraulic fracturing in the Bakken formation.

EIA expects U.S. crude oil production to keep growing rapidly over the next two years, growing from an average 6.5 million barrels per day in 2012 to an average 7.3 million bpd in 2013 and 7.9 million bpd in 2014. Drilling in tight oil plays in the onshore Williston, western Gulf of Mexico and Permian Basins, is expected to account for the bulk of that forecasted production growth, EIA reported in its March 12 Short-Term Energy Outlook.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

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Energy Boom Helps Fuel West Texas, Great Plains Population Growth

The boom in Bakken and Permian Basin oil and gas activity helped fuel population growth in North Dakota and Texas from 2011 to 2012, the U.S. Census Bureau reported Thursday.

Midland, Texas ranked as the fastest-growing metro area from July 1, 2011 to July 1, 2012, with population growth of 4.6 percent. Neighboring Odessa, Texas, ranked fifth, with Casper and Cheyenne, Wyo., and Bismarck, N.D. ranked among the top 20 fastest-growing metropolitan areas.

"After a long period of out-migration, some parts of the Great Plains – from just south to the Canadian border all the way down to West Texas –are experiencing rapid population growth," said Thomas Mesenbourg, the Census Bureau's senior adviser and acting director, in a statement. "There are probably many factors fueling this growth on the prairie, but no doubt the energy boom is playing a role. For instance, the Permian Basin, located primarily in West Texas, and North Dakota accounted for almost half of the total U.S. growth in firms that mine or extract oil and gas, during a recent one-year period."

In micropolitan areas, which contain an urban cluster of between 10,000 and 49,999 people, Williston, N.D. topped the list of fastest-growing cities with 9.3 percent. Dickinson, N.D. ranked third among fastest-growing micropolitan areas with 6.5 percent.

Eleven Texas counties ranked among the 50 fastest-growing as well as among the 50 highest numeric gainers from July 1, 2011 through July 1, 2012. Bexar County, which encompasses San Antonio and close to the core South Texas counties impacted by Eagle Ford shale activity, ranked 11th among the largest numeric gainers in this timeframe, a U.S. Census Bureau spokesperson told Rigzone in an email.

Dimmitt County, located on the Texas-Mexico border, ranked 20th on the list of U.S. counties that experienced the largest percentage gain in population from 2011 to 2012. Guadalupe County, just east of San Antonio, ranked 49th among the counties nationwide with the largest percent gain in population.

Two North Dakota counties, Williams and Stark, ranked among the five fastest-growing counties with populations of 10,000 or more.

Exploration and production activity from Permian Basin and Eagle Ford helped bolster Texas oil production to nearly 1.5 million barrels of oil per day, an almost 50 percent increase in crude oil production since 2011, Texas Railroad Commissioner Christi Craddick said in a Feb. 28 statement. Craddick added that Texas now represents nearly a fourth of total U.S. crude oil production, and noted that the oil and gas energy sector created 427,761 jobs in Texas and paid $9.25 billion in state taxes in 2011.

The surge in exploration and production (E&P) activity in the Eagle Ford supported nearly 50,000 full-time jobs in 20 counties and contributed more than $25 billion to the South Texas economy, according to a March 13 report by the Eagle Ford Shale Task Force. However, the surge in E&P activity has created infrastructure challenges for South Texas, including the need for a sustainable housing plan for the region and roads wearing down from greater traffic.

The Permian Basin continues to play a significant role in Texas oil production as the increased use of enhanced oil recovery practices in the Permian Basin has substantially impacted U.S. oil production. More than 270 million barrels of oil were produced in the Permian Basin in 2010, and over 280 million barrels of oil were produced in 2011, according to the Texas Railroad Commission.

In 2011, North Dakota was the fourth largest crude oil producing U.S. state, accounting for more than 7 percent of U.S. oil production, according to the U.S. Energy Information Administration (EIA). A 35 percent increase in production from 2010 to 2011 was primarily driven by horizontal drilling and hydraulic fracturing in the Bakken formation.

EIA expects U.S. crude oil production to keep growing rapidly over the next two years, growing from an average 6.5 million barrels per day in 2012 to an average 7.3 million bpd in 2013 and 7.9 million bpd in 2014. Drilling in tight oil plays in the onshore Williston, western Gulf of Mexico and Permian Basins, is expected to account for the bulk of that forecasted production growth, EIA reported in its March 12 Short-Term Energy Outlook.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Greene's Energy Group Opens New Texas Facilities

Greene's Energy Group, a leading provider of integrated testing, rentals and specialty services, has opened two new facilities in Alice and Pleasanton, Texas, announced Chief Executive Officer (CEO) Bob Vilyus.

These facilities serve Central and South Texas with emphasis on the Eagle Ford Shale. As state-of-the-art facilities, each are outfitted with warehouse and office amenities designed to accommodate the needs of the industry in the region.

The Alice facility is the headquarters for the Greene's Well Testing Services. The facility is comprised of a three-bay warehouse on three acres of land with a wash rack, large conference room, break room and five offices.

The facility in Pleasanton has a five-bay warehouse on ten acres that is equipped with a wash rack, break room, large conference room and five offices and is the base for Greene's Well Testing and Torque and Testing Services.

"Because both facilities are centrally located in South Texas and can easily access the Eagle Ford Shale region, we see a strong growth potential for both facilities," said Vilyus. "As we look to expand to other geographical regions, these facilities will serve as blueprints for future expansions."

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Energy Boom Helps Fuel West Texas, Great Plains Population Growth

The boom in Bakken and Permian Basin oil and gas activity helped fuel population growth in North Dakota and Texas from 2011 to 2012, the U.S. Census Bureau reported Thursday.

Midland, Texas ranked as the fastest-growing metro area from July 1, 2011 to July 1, 2012, with population growth of 4.6 percent. Neighboring Odessa, Texas, ranked fifth, with Casper and Cheyenne, Wyo., and Bismarck, N.D. ranked among the top 20 fastest-growing metropolitan areas.

"After a long period of out-migration, some parts of the Great Plains – from just south to the Canadian border all the way down to West Texas –are experiencing rapid population growth," said Thomas Mesenbourg, the Census Bureau's senior adviser and acting director, in a statement. "There are probably many factors fueling this growth on the prairie, but no doubt the energy boom is playing a role. For instance, the Permian Basin, located primarily in West Texas, and North Dakota accounted for almost half of the total U.S. growth in firms that mine or extract oil and gas, during a recent one-year period."

In micropolitan areas, which contain an urban cluster of between 10,000 and 49,999 people, Williston, N.D. topped the list of fastest-growing cities with 9.3 percent. Dickinson, N.D. ranked third among fastest-growing micropolitan areas with 6.5 percent.

Eleven Texas counties ranked among the 50 fastest-growing as well as among the 50 highest numeric gainers from July 1, 2011 through July 1, 2012. Bexar County, which encompasses San Antonio and close to the core South Texas counties impacted by Eagle Ford shale activity, ranked 11th among the largest numeric gainers in this timeframe, a U.S. Census Bureau spokesperson told Rigzone in an email.

Dimmitt County, located on the Texas-Mexico border, ranked 20th on the list of U.S. counties that experienced the largest percentage gain in population from 2011 to 2012. Guadalupe County, just east of San Antonio, ranked 49th among the counties nationwide with the largest percent gain in population.

Two North Dakota counties, Williams and Stark, ranked among the five fastest-growing counties with populations of 10,000 or more.

Exploration and production activity from Permian Basin and Eagle Ford helped bolster Texas oil production to nearly 1.5 million barrels of oil per day, an almost 50 percent increase in crude oil production since 2011, Texas Railroad Commissioner Christi Craddick said in a Feb. 28 statement. Craddick added that Texas now represents nearly a fourth of total U.S. crude oil production, and noted that the oil and gas energy sector created 427,761 jobs in Texas and paid $9.25 billion in state taxes in 2011.

The surge in exploration and production (E&P) activity in the Eagle Ford supported nearly 50,000 full-time jobs in 20 counties and contributed more than $25 billion to the South Texas economy, according to a March 13 report by the Eagle Ford Shale Task Force. However, the surge in E&P activity has created infrastructure challenges for South Texas, including the need for a sustainable housing plan for the region and roads wearing down from greater traffic.

The Permian Basin continues to play a significant role in Texas oil production as the increased use of enhanced oil recovery practices in the Permian Basin has substantially impacted U.S. oil production. More than 270 million barrels of oil were produced in the Permian Basin in 2010, and over 280 million barrels of oil were produced in 2011, according to the Texas Railroad Commission.

In 2011, North Dakota was the fourth largest crude oil producing U.S. state, accounting for more than 7 percent of U.S. oil production, according to the U.S. Energy Information Administration (EIA). A 35 percent increase in production from 2010 to 2011 was primarily driven by horizontal drilling and hydraulic fracturing in the Bakken formation.

EIA expects U.S. crude oil production to keep growing rapidly over the next two years, growing from an average 6.5 million barrels per day in 2012 to an average 7.3 million bpd in 2013 and 7.9 million bpd in 2014. Drilling in tight oil plays in the onshore Williston, western Gulf of Mexico and Permian Basins, is expected to account for the bulk of that forecasted production growth, EIA reported in its March 12 Short-Term Energy Outlook.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

BG Group Sells Texas Cotton Valley Assets

BG Group announced it signed a sale and purchase agreement with EXCO Resources for the divestment of all its interests in the shallow, non-core, conventional producing assets and acreage in the Cotton Valley formation for a consideration of $132.5 million.

These assets, covering approximately 54,165 net leasehold acres across East Texas and North Louisiana, are not required to be held by BG Group in order to hold, drill and produce the undeveloped Haynesville/Bossier formation shale reserves which lie beneath the Cotton Valley formation.

Closing of this transaction is expected in the first quarter of 2013.

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Fossil Oil Makes Discoveries in Texas Counties

Fossil Oil Company, LLC announced its newest gas/condensate discoveries by first drilling the deep, 3D seismic-based Cook Mountain well in Liberty Co., TX, and a second oil/gas discovery by drilling a dual-stacked, horizontal well into the Buda and Georgetown formations in Brazos Co., TX.

The Bandit #1 Well is a deep 15,000 feet Cook Mountain (Yegua Sand) formation that tested on a conservative 7/64th choke flowing 140 Barrels of Oil and 1.3 Million Cubic Feet of Gas. Opening the choke to a 10/64th, testers measured the gas volume over 2 Million Cubic Feet of Gas a day and the oil to nearly 300 Barrels of Condensate per day. The flowing tubing pressure remained stable at 8,500 psi throughout the 48 hour test. A pipeline is being built and the tank battery installed currently.

The Gary Bryant #1H Well is a 9,200-feet vertical well with 3,500-foot laterals in the Buda formation and in the Georgetown formation. This well was flowing gas and oil throughout the drilling of each of the stacked laterals. A pipeline is currently being installed to the interstate sale line along with the production facility.

"What a sight to behold," said Fossil Oil's President Dennis R. Kittler during the initial flaring of the gas while cleaning up during the well testing.

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TAM Opens New West Texas Office

TAM International announced Tuesday the opening of a new district office and shop in Midland, Texas. The new office is the latest in a series of recent growth and expansion efforts that ensure the company is well positioned to offer the highest level of customer service and support in rapid growth markets, including the Permian Basin.

"The Permian Basin market continues to skyrocket, offering significant growth and expansion opportunities," said Carl Landcaster, Midland district manager for TAM International. “Our new Midland office reflects the company’s unflagging commitment to offering new and existing clients localized customer service and support."

The company’s new 11,500-square-foot facility opened its doors on Jan. 1, 2013. The Midland facilities will offer a full range of drilling, completions and workover tools and services, including the PosiFrac Multi-Stage Fracture System.

Landcaster will manage the office along with a regional team focused on enhancing TAM’s customer support and services while establishing key relationships throughout the region.

The new office is located at 6505 FM 1788 South, Midland, TX.

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Colorado Springs pilot among two dead in Texas plane crash

Font ResizeColorado NewsAssociated PressAssociated PressPosted: 12/15/2012 11:19:15 AM MSTDecember 15, 2012 6:19 PM GMTUpdated: 12/15/2012 11:19:16 AM MST

A Colorado Springs pilot and another man were killed in the crash of a small plane in Amarillo, Texas. Authorities say the plane plummeted into a field shortly after takeoff.

The crash happened Friday night during high winds in the Texas Panhandle. The Texas Department of Public Safety said the plane went down 20 miles from the Amarillo airport where pilot Kelly O'Neal had stopped to pick up 79-year-old passenger Robert O'Neal.

The cause of the crash remains under investigation.

Authorities said the pilot was from Colorado Springs. Robert O'Neal was from Amarillo.

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