As an integrated, full service turnkey provider of crude oil transportation, alternative marketing services and pipeline infrastructure for the Eagle Ford shale, Tierra is uniquely positioned to capitalize on multiple regional trends.
The Eagle Ford Shale Play
Projected to be the largest oil and gas discovery in the last 40 years, the Eagle Ford shale is estimated to hold reserves that could amount to over 4.7 billion barrels of crude oil, or roughly twice the size of the Bakken Shale play in North Dakota, representing sufficient reserves to generate approximately 200,000 bpd of production for the next 65 years.
The Eagle Ford shale play is experiencing significant growth, having increased its rig count by approximately 240% since the second quarter of 2010 to 143 rigs as of March 2011. From an operating standpoint, crude oil production has increased from under 1,000 bpd in 2009 to approximately 80,000 bpd as of March 2011, according to regional pipeline operator Enterprise Products Partners.
Growth in the region is expected to continue, as operators are increasingly able to overcome the technological and economic issues previously encountered in the play, and specifically as they benefit from the growing availability of hydraulic fracturing technologies and equipment.
Tierra Well Positioned to Capitalize
In the near term, Tierra will benefit from the shale’s continued production growth as it serves several leading operators in the region. In the longer term, Tierra expects to capitalize on the availability of its pipeline which is positioned directly in the heart of the Eagle Ford shale operating region, and spans from San Antonio to refinery row in Corpus Christi, TX.