Eagle Ford operators differ on Harvey's impact

By Luke Geiver | August 29, 2017

Although the impact of Hurricane Harvey on oil and gas activity in Texas has yet to be determined, it is clear that several Eagle Ford operations have had to take action.

Calgary-based Baytex Energy suspended its drilling and completion activities in the Eagle Ford last Friday, but earlier this week the company announced it had begun field inspections to determine when drilling and completion operations could resume—potentially this week.

“There is currently a limited ability to produce as downstream markets are closed or significantly curtailed,” the company said. “The safe start-up of field operations has begun and will be balanced with market access. We expect to increase production throughout the week.”

Sundance Energy Australia said it shut-in roughly two-thirds of its Eagle Ford wells last week as well. The wells, which account for roughly 7,500 barrels of oil per day, could be shut-in for a week. The oil produced from the wells will not reach market for roughly one more week after they are brought back online, the company estimates “due to expected high demand for oil tanker trucks and other services.”

Lonestar Resources U.S. was able to maintain production on many of its Eagle Ford wells. Trucking capacity, plant outages and power outages have reduced the amount of oil and gas sales for the company. The company expects the outages to be short in duration. Although drilling and completion operations were halted in some areas due to service provider shutdowns, Lonestar anticipates operations to resume later this week.

“Our operations team here in Fort Worth coordinated with our field personnel to come up with resourceful solutions to keep most of our wells producing through the storm and its aftermath,” said Frank Bracken, Lonestar CEO.

Tony Sanchez, CEO of Sanchez Energy, also said his team was mostly able to keep operations going during the Hurricane. Sanchez said none of its assets sustained any significant damage and that any completion or drilling operations that were temporarily halted during the storm will resume this week.

EOG Resources and Chesepeake Energy also halted operations in the Eagle Ford. Marathon Oil also reduced its operational activity.

Enterprise Product Partners said its facilities along the Texas Gulf Coast haven’t incurred any significant damage. Of the company’s eight natural gas processing plants in South Texas are operating. The other non-operating facilites are down due to power loss, lack of third party services, minor damage or low natural gas production. The Seaway Pipeline which travels from Cushing, Oklahoma, to Houston is in service.