Eagle Ford Production Dips in South Texas

Though much of the news about Hurricane Harvey has focused on oil refineries along the Houston Ship Channel, the storm also impacted production from the Eagle Ford Shale in South Texas. An estimated 300,000 barrels a day of crude oil production went offline before the storm, the first time a large swath of wells across the 400-mile field have been shut down for a natural disaster.

The shut-down has also disrupted natural gas pipeline flows into Mexico, which is one of the largest purchasers of the product, causing gas prices to spike. As shale drilling is a new phenomenon, there isn’t much known about what happens when a group of oil wells is shut down, and taken off line.

There is some good news, however. Energy bank Tudor Pickering & Holt indicated that Harvey’s impact on the area “should be short-lived,” despite the logistics of getting the wells and workers back online.

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