EOG Resources Inc. (EOG) and other drillers increased production in November by 70 percent from a year earlier in South Texas’s Eagle Ford shale formation.
The nine geographic fields that make up the majority of the play yielded 358,826 barrels of crude a day, according to preliminary data released yesterday from the Texas Railroad Commission, which oversees oil and gas drilling. Daily output was 211,333 barrels in November 2011.
The production totals typically increase as the state receives revised, corrected or late reports. October production increased to 376,123 barrels a day from the initial estimate of 323,098 barrels last month.
EOG is the largest leaseholder in the Eagle Ford play, with 644,000 net acres. Chesapeake Energy Corp. (CHK) is next with 490,000, according to data compiled by Bloomberg.
Growing production out of Eagle Ford is helping fuel a renaissance in Texas crude. The state produced 2.1 million barrels a day in October, the highest monthly level since April 1987, according to the U.S. Energy Department’s Energy Information Administration.
Plains Marketing LP’s posted price for Eagle Ford oil today was $108.53 a barrel, between today’s benchmark settlement prices of $96.24 for West Texas Intermediate and $112.42 for Brent.