Producers fly from Eagle Ford; Cabot pulls all rigs out, delays drilling wells

摘要

While nearly all oil and gas producers have significantly reduced drilling activity in various plays this year as they await commodity price rebounds, several operators are making their largest capital expenditure cuts to asset development in South Texas’ Eagle Ford Shale. There has been a trend in 2016 first-quarter earnings reports of exploration and production companies who have assets in the Eagle Ford significantly scaling back operations there. For instance, Houston-based Cabot Oil and Gas revealed in its April 29 earnings report that it pulled all rigs out of the Eagle Ford. Cabot also announced it does not plan on completing or drilling any more wells in the Eagle Ford until the second half of the year when it plans to drill three wells.