EOG Resources CEO:Sees Oil Output From Shale As 'Game Changer'
HOUSTON (Dow Jones)--EOG Resources Inc. (EOG) Chief Executive Mark Papa said that oil output from rock formations known as shales will change the face of oil production in the U.S.
The Houston-based energy company plans to spend $5.1 billion in capital this year to pursue oil and natural gas liquids in places like the Eagle Ford Shale, a hydrocarbon-rich rock formation in South Texas. EOG Resources has acquired 505,000 acres with estimated reserves of 900 million barrels of crude oil equivalent.
Oil from shale rock formations will be a "North American industry game changer," Papa said during a meeting with investors on Wednesday, adding that the Eagle Ford is one of the largest discoveries in the U.S. of the last 40 years.
-By Jason Womack, Dow Jones Newswires; 713-547-9201; jason.womack@dowjones.com
HOUSTON (Dow Jones)--EOG Resources Inc. (EOG) chief executive Mark Papa said the company may seek out a partner to develop its natural gas assets as the company shifts its focus to finding oil.
Although the Houston-based energy company is shifting its focus to oil, it still has assets in prolific onshore natural gas fields such as Texas' Barnett Shale, the Haynesville Shale in Texas and Louisiana, and the Marcellus Shale in Pennsylvania and other states.
"We are not going to be focusing on North American gas growth," Papa said during a meeting with analysts, adding the company may look for a joint venture partner to develop its assets, "but there are no immediate plans to do so."
EOG plans to spend $5.1 billion in capital this year to pursue oil and natural gas liquids in places like the Eagle Ford Shale, a hydrocarbon-rich rock formation in South Texas. EOG Resources has acquired 505,000 acres with estimated reserves of 900 million barrels of crude oil equivalent.
The company plans to use the drilling techniques it pioneered in places like the Barnett Shale to unlock oil reserves in the Eagle Ford. Energy companies have learned to drill horizontally through these dense rock formations and break them apart, releasing the hydrocarbons trapped within.
Papa said the company will continue to seek out rock formations that have the potential for oil production and the company is "not satisfied" with its current oil asset portfolio.
"The vast majority of our investments will be going to oil or liquids projects," Papa said.
-By Jason Womack, Dow Jones Newswires; 713-547-9201; jason.womack@dowjones
http://online.wsj.com/article/BT-CO-20100407-707210.html?mod=WSJ_la...
The Houston-based energy company plans to spend $5.1 billion in capital this year to pursue oil and natural gas liquids in places like the Eagle Ford Shale, a hydrocarbon-rich rock formation in South Texas. EOG Resources has acquired 505,000 acres with estimated reserves of 900 million barrels of crude oil equivalent.
Oil from shale rock formations will be a "North American industry game changer," Papa said during a meeting with investors on Wednesday, adding that the Eagle Ford is one of the largest discoveries in the U.S. of the last 40 years.
-By Jason Womack, Dow Jones Newswires; 713-547-9201; jason.womack@dowjones.com
HOUSTON (Dow Jones)--EOG Resources Inc. (EOG) chief executive Mark Papa said the company may seek out a partner to develop its natural gas assets as the company shifts its focus to finding oil.
Although the Houston-based energy company is shifting its focus to oil, it still has assets in prolific onshore natural gas fields such as Texas' Barnett Shale, the Haynesville Shale in Texas and Louisiana, and the Marcellus Shale in Pennsylvania and other states.
"We are not going to be focusing on North American gas growth," Papa said during a meeting with analysts, adding the company may look for a joint venture partner to develop its assets, "but there are no immediate plans to do so."
EOG plans to spend $5.1 billion in capital this year to pursue oil and natural gas liquids in places like the Eagle Ford Shale, a hydrocarbon-rich rock formation in South Texas. EOG Resources has acquired 505,000 acres with estimated reserves of 900 million barrels of crude oil equivalent.
The company plans to use the drilling techniques it pioneered in places like the Barnett Shale to unlock oil reserves in the Eagle Ford. Energy companies have learned to drill horizontally through these dense rock formations and break them apart, releasing the hydrocarbons trapped within.
Papa said the company will continue to seek out rock formations that have the potential for oil production and the company is "not satisfied" with its current oil asset portfolio.
"The vast majority of our investments will be going to oil or liquids projects," Papa said.
-By Jason Womack, Dow Jones Newswires; 713-547-9201; jason.womack@dowjones
http://online.wsj.com/article/BT-CO-20100407-707210.html?mod=WSJ_la...
Views: 125
Replies to This Discussion
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Permalink Reply by Headly on -
Does this sound like good news for us mineral owners in Mora 827? It's hard for me to tell at this point.
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Permalink Reply by Pipeliner on
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John,
It will be good news if they take in a partner with deep pockets and that will develop their leases aggressively. If they do it with a "Poor Boy" partner, with limited capital, they will just go after the first well per section to hold leases by production. It then will be a long time before they start putting in the 9 other wells-"In Fill wells", per section. These production wells are where the really good royalties will come from.
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Permalink Reply by Headly on
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Thanks Pipeliner. We will make some inquiries and keep our fingers crossed.
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Permalink Reply by North LA on
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I've seen trends of CHK and EOG fishing around a certain area and it's interesting that both say they are shifting a lot of resources to oil. This will be interesting to follow.
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Permalink Reply by j garrett on
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Let's all hope and pray that the do find oil beneath the Haynesville, beneath the LouAnn Salt (Smackover). That would be AWESOME!
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Permalink Reply by Jack Blake on
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HS OIL CRIED JACK BLAKE!!!!!!!!!!!!!!!!!!!!
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Permalink Reply by Catfish on
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If oil was present in the HA shale wouldn't there be production already since so many wells have been drilled and fraced? Or would the process have to be totaly different in order to produce the oil?
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