Eagle Ford Oil production is falling as fast as it rose

Eagle Ford’s oil production has risen up quickly since 2010 all the way through to 2015 with the production peaking at 1.7 million BBL/D. In March of 2015, oil production in Eagle Ford started to drop but it wasn’t until this year that the oil production dropped rapidly in an 8 month period from 1.4 million BBL/D to 1 million BBL/D.

This is a reflection of the significant decrease in oil rig activity. There has been an 82% decrease in the number of active rigs from 183 rigs to 33 rigs in the last year, marking a drastic change in the trend of oil rig activity in Eagle Ford.

Deals in the Eagle Ford have been fetching more modest valuations, especially when compared to its regional counterpart, the Permian Basin. The average (US$) value per BOE/D for deals with at least 1,000 boe/d in production is in the $40,000 range compared to the $160,000 range of Permian Basin’s average (US$) value per BOE/D. In two years’ time, deals from Permian Basin have captured $17.4 billion over the Eagle Ford area. Source: BOE Report M&A Database