By Cannon News Services Posted July 19, 2012 - 8:49am
The Eagle Ford Shale drilling rig count hit 280 rigs over the past week. This marks the first week activity has reached 280 rigs since mid-May. The play was in the news several times this week as UTSA released an Eagle Ford Housing Study that outlined the needs for creative solutions in South Texas. Flexible design that allows for multiple uses and affordable options are important for the growing population. The number of rigs directed at natural gas remained steady at 71. Karnes and Webb counties are currently the only counties with over 10 rigs targeting natural gas. Henry Hub futures were trading at $2.88 on Friday afternoon. Coal to gas switching is less favorable in summer months, but June and July have bucked the trend and natural gas demand has stayed seasonally high. Higher consumption will likely save the natural gas market from a train wreck as we head toward peak storage levels. Every day that passes at current levels of consumptions lowers price risks for operators. The number of horizontal rigs running in the region is still 263. One water well is being drilled in McMullen County. Karnes County holds its position as the leader of development with 42 rigs and La Salle is down to 36 rigs this week. McMullen (31), Dimmit (28), Webb (26), Gonzales (20), DeWitt (20), Atascosa (13), and Live Oak (12) make up the top Eagle Ford counties.
but texon remains in a steady death spiral, no oncrease in oil or massive spikes in the markets have any effect what so ever!
go the bots!!
TXN Price at posting:
44.0¢ Sentiment: Buy Disclosure: Held
