Shell Oil Eagle Ford Shale Leasing Activity
Shell Oil Company, the Houston based arm of Royal Dutch Shell, has announced that it has acquired significant acreage in the liquids rich “oil window” and “condensate window” of the Eagle Ford shale. In a press release on the company website they announced that their current Eagle Ford shale lease hold area is comprised of well over 250,000 acres and building.
The lease acreage is mostly contiguous tracts, which will enable easier building of gathering pipeline networks, compressor stations, etc. Some of this Eagle Ford shale lease area is in partnership with other oil and gas companies but will be operated by Shell.
The new Eagle Ford shale lease acreage will help boost Shell Oil’s share of North American oil and gas production which is now up to 7.8%.
As the oil spill and Deepwater Horizon tragedy has led to a moratorium on Gulf of Mexico drilling we are already seeing more money and resources being focused on the Eagle Ford shale instead of offshore projects. BP, in partnership with Lewis Energy group, now has a fifty percent interest in over 80,000 Eagle Ford shale acres. Conoco Phillips has leased over 300,000 acres. As the offshore industry reels from drilling bans and increased regulation we will see more interest in ecologically safer areas with proven oil and gas reserves such as the Eagle Ford shale.
Shell has major positions in other North American shale plays, such as the Haynesville and Marcellus, totaling over 1.3 million acres: