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Drilling Deeper: Eagle Ford Shale moving up despite oil prices going down

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Drilling Deeper: Eagle Ford Shale moving up despite oil prices going down

Williams Scotsman | March 9, 2015

The Eagle Ford Shale is located in South Texas and is currently the most active shale play in the world. Photo courtesy of Williams Scotsman.

We’ve drilled deeper (pun intended) to various energy hotbeds throughout North America in previous posts. I’d like to shine a light on the Eagle Ford Shale (EFS) region for a variety of reasons. First, despite oil prices going down, there is still production and growth opportunity in the area. Companies of all shapes and sizes are realizing the potential of the play and are setting up shop. Overall, there is a success story underway.

If you’re unfamiliar, the EFS is located in South Texas and is currently the most active shale play in the world. For many operators and workers in the region the area is simply known as Eagleford. According to Eaglefordshale.com, nearly  $30 billion was spent developing the play in 2013. The Eagle Ford had more than a $60 billion dollar impact on the local South Texas economy in 2012 and over 116,000 jobs were supported in the 20 counties impacted by the play. There is still quite a bit of activity despite the decrease in price for a barrel of oil.  

Well-established players as well as smaller energy companies recognize the potential of having operations and facilities in the area. According to the San Antonio Business Journal, growth continues to happen in the region even as I write this post. It was reported last week that Houston-based Stabilis Energy opened a LNG liquefaction facility in the heart of the region. The 100,000-gallon-per-day facility opened last week in George West and provides liquefied natural gas and engines that use it to drilling sites throughout the area.

At Williams Scotsman, we are servicing a variety of companies that are working in the region. EFS is among the best places for many of our energy customers. Some of our customers have recently acquired land and need onsite office facilities for engineers and drilling staff. Others turn to us to provide break rooms and dining facilities for rig operators and other staff. No matter the space need we work with energy companies both large and small.

So, what’s next for EFS? Based on our experience in the area, we believe certain parts of Texas, specifically the counties of Karnes, LaSalle, DeWitt and McMullen, will continue to see growth. In those areas it’s more economical to get oil out of the ground and therefore you’ll see companies that have production started continue and ones that acquire land still explore. We’ve seen how technology has positively impacted the production numbers in this area, and we predict that will continue to increase as new innovations are utilized.

Being in the right place at the right time is key for our energy customers. With branch locations in the state of Texas and throughout the country, we are helping companies get their work done more effectively and efficiently in various energy hotbeds. What’s your experience in the EFS region? Please share your perspective in the comments.

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