by P. Brian Berryman on 02/02/2013
More companies are coming forward with massive investments planned for the next couple of years in the Eagle Ford Shale.
Carrizo Oil and Gas has announced that it has allocated approximately $385 million out of its $500 million budget earmarked for development, into drilling activities in the Eagle Ford Shale. That works out to about 77% of the company's total development budget. As of December last year, the company had 91 horizontal wells, and had brought 68 wells to production.
Another company that is increasing its activity in the Eagle Ford Shale is Valero, which has plans to boost its refining capacity for the Shale. The company plans to add a 90,000 b/d crude topper at its Houston refinery. Those extension plans are in place so that the company can process greater volumes of lighter Eagle Ford crude.
Valero is one of several Gulf Coast refineries that had spent many years making plans for increased volumes processing. However, those plans had been made for crude from the Americas. With booming production in the Eagle Ford Shale, lawyers have found that many of these companies have now turned their attention to light crude refining instead. Last year, Flint Hills Resources had also announced similar plans to increase Eagle Ford crude refining at its refinery in Corpus Christi.
Meanwhile, crude production in the Eagle Ford Shale increased by 70% during the month of November. According to the Texas Railroad Commission, oil production in this region topped 358,826 barrels a day. That is a 70% increase from 2011. In 2011, the total production of crude was 211,033 barrels per day.blog comments powered by Disqus