The price of oil, WTI, has been soaring and has reached a level that hasn’t been seen since November 2014.
Price, as this article is being written, Thursday, June 28, at 8:41, is $73.54 USD/bbl.
Reasons for this upsurge in the commodity are numerous.
It begins with OPEC, namely Saudi Arabia and its other members, along with Russia, wanting to produce more oil, a million barrels a day, to replace oil production that Venezuela and Iran can’t provide.
So far that increased production isn’t taking place. They desired a $60 USD/bbl price, but that’s not happening.
Along with that scenario, Canadian oil pipeline constraints, and other added issues have factored into a delay in production out of its oil-sands. The shutdown of a key oil-sands operation in Canada is also creating a problem.
While all of this is happening, our Eagle Ford Shale is “humming along” really well and producing a lot of oil at a good price.
Drilling techniques have improved immensely in the Eagle Ford where drilling and fracking can be done in a short period of time compared to what it took in developmental years.
Things are really busy around Pleasanton, Atascosa County and the entire Eagle Ford region.
Sales tax revenues in Pleasanton and Atascosa County are soaring. In May 2018 the Texas Comptroller’s office rebate allocation for Atascosa County was $605,598 compared to $363,935 for the previous year at the same time. Year to date payments for 2018 are $3,664,566 as compared to $2,254,524 in 2017. Out of the surrounding counties of Bee, Frio, Medina and Karnes, Atascosa County has reaped the largest increase for the year.
The Baker Hughes rig count shows that there are 82 drilling rigs operating in the Eagle Ford.