Home / Eagle Ford News / Oil prices push Pioneer out of Eagle Ford Shale assets
FILE - In this Tuesday, July 26, 2011 file photo, Austin Mitchell walks away from an oil derrick outside of Williston, N.D. Lower oil prices, while good for the broader U.S. economy, are a threat to what has been a surprising and dramatic surge in oil production in the U.S., and to drilling communities that have come to depend on oil money. (AP Photo/Gregory Bull, File) via NewsCred

Oil prices push Pioneer out of Eagle Ford Shale assets

In light of falling oil prices, Pioneer Natural Resources has made the decision to sell off a pipeline in the Eagle Ford Shale in order to continue operating efforts in the Permian Basin.

Dallas Business Journal reported that Pioneer CEO Scott Sheffield made the announcement during a conference call with investors. In addition to the pipeline, the company will also offer up $1 billion in stocks.

It allows Pioneer to really prudently develop its assets in what I believe could easily be a $70 to $80 (per barrel) oil price environment over the next two years,” said Sheffield.

Although the Irving, Texas-based company is one of the most prominent Eagle Ford players, the business has seen its equity drop 25 percent since oil prices started diminishing roughly four months ago. In July, oil prices still floated above $100 per barrel versus the $70-75 reality facing companies today.

This is perhaps the biggest move among more to come from oil producers in the United States. Saudi Arabia’s fierce competition in oil production and selling prices has finally started to discourage unconventional shale companies in the states. In addition, with Saudi output still high in the figures of around 9.6 million barrels a day and potential price gauging in oil exports to the United States, America’s shale boom is in for a jagged price war reality.

114 comments

  1. Heather , first company down.

  2. Pioneer isn’t an elephant in the Eagle Ford…..so don’t panic.

    Now if Eog Resources runs, then you can panic.

  3. I hope everyone has been saving

  4. Are they still out at rocker b

  5. Pioneer is big in Permian basin, wonder what’s next to come

  6. Amber Miranda I am getting nervous

  7. Pioneer also just had a rig explode in Cotulla, Tx. Killed 2 people. I just wonder if this is tied to potential law suits? Make people believe things are bad. Maybe in Drilling operations but if you are in the Workover business or Swabbing business things are still going very strong!!

  8. PNR is divesting EFS Midstream LLC, not their production or acreage.

  9. Pioneer is running from law suits

  10. Love how the author went for the shock value/sky is falling approach rather than the important part of what Pioneer announced today – their plans to spend $1.4 – $1.6 Billion in 2015-16 to develop their Permian Basin assets. Way to go for the page hits instead guys….

  11. No worries! Pioneer has gone thru a lot of changes up high. This not not a reflection on what’s to come. Us at Marathon are actually looking to expand. Have friends that work for EOG. They are still going strong and don’t have any plans of slowing down either.

  12. And the permian will keep on kickin. At least the areas that dont require fracking.

  13. If I remember right Pioneer was selling their assets in the EagleFord before the price slump.

  14. Can you show me where you got this info from?

  15. The Saudis have nationalized the industry so they’ll take their losses and push oil down to $10 a barrel if that’s what it takes.

  16. Pioneer isn’t that big a deal.

  17. Why do you think I’m leaving C&J, word around is they’re gonna start laying off ppl

  18. Last in first out c’mon

  19. All I know is that I work for Orion Drilling and we’re in the money right now. Good times while there are layoffs in my hometown.

  20. Pioneer is moving their main interest to the Permian, these wells are making 2,500 bbls/day. You would leave the Eagleford for that to.

  21. Pioneer isn’t super big out here. As long as bhp don’t pull out we’re all good lol

  22. That was the word at the yard last week, crews are gonna start staking up at the yard also

  23. Been in the Permian, think I’d keep the Eagleford any day.

  24. Not mine headed to west tx

  25. Bhp prolly just sell us to a company like Milagro lol

  26. oil will not be able to stay at 70 for much longer,, without it impacting production problems or a complete shutdown of selling oil.. it must stay at at least 80 to 90 plus to keep everybody happy

  27. I work in the Permian and the other half of my company is in the Eagleford. We are going strong both places. Pioneer is a little fish in a big sea in south TX but a big man on campus in the Permian. Wouldn’t worry. Apache on the other hand is cutting their operation in half in the Permian from what I heard today but everyone else is balls out in the Permian

  28. They just bought nabors, whats next?, weed out the undesirables, the natural order of business!

  29. Donny Baer how does a man get into the oil and gas field?

  30. Pecos?? I think that’s what they said, I hope I’m wrong about the lay off and crews stacking up but you never know. Hopefully the price of the barrel goes back up soon, but the Saudis are being very competitive.

  31. The headline on this article is very misleading and inappropriate. True they are selling “a part” of the eagleford assets but by no means all of it. A much more appropriate headline would be,”pioneer to sell eagleford pipeline”. With poor journalism the way it is today I almost expect misleading headlines.

  32. If this is true then I may lose my job. How am I going to pay for my little girls private schooling and dance lessons?!

  33. Pioneer is moving to bigger profits in the Permian, and less corrosive gas/oil production than the Eagleford.

  34. We all have seen what the lower oil prices have done to the industry. This does indeed affect all aspects of the network we deal in .The service industry feel it as well as the investors in corporations. Its sometimes a nail biter but with smart management and long term determinate to win , we always seem to come out on top again. Living a blessed life knowing that we (being in this industry ) have much to be thankful for and proud of . We give the world its energy to and products to live a rich life .It’s not just my pleasure , but it is an honor !!!

    keep on -keeping on !!

  35. A lot of wet wells in the eagle all the good producing wells are in west tx

  36. Eagle Ford Shale is a whole different ballgame than west Texas. The price of oil can drop to below 40 and still make a tremendous profit while the rest of the state and nation are paralyzed.

  37. Saudis may well be keeping oil prices low to keep economic pressure on the Iranians, who that hate.

  38. the Saudis are trying to put american oil out of business, they are doing the same thing the chinese do with cheap crap. It has nothing to do with the Iranians. Frankly I would rather make nice with Iran, and then push the Saudis out of the oil business.

  39. I don’t know much about the Oilfield, but because this is on the line it must be true. Hopefully all my friends at Pioneer won’t have to move to Midland. I read on the line, it’s really cold in the desert.

  40. Low oil prices are good for everyone.

  41. Rigs counts haven’t fallen yet but a wise man would get into midstream operations.

  42. Good for cheap gas but not good if they stop drilling it will put too many people out of work but by all means yall enjoy your cheap gas ..

  43. Cheap gas = inexpensive food and removal of fuel surcharges on products. Good for everyone. They will drill as long as they can. If they stop due to lower prices, jobs will have been created across the board in other industries.

  44. Bigger than people think , big in west texas and one of the few Operating companies still drillng in the Barnet

  45. What you have to watch is new well permit requests by Operating companies being submitted . The wells being drilled now have been on the books for a year or more and have to be drilled , completed and brought on line to satisfy contractual obligations .
    If you see a downward spiral on new permit requests being submitted then everyone can panic ..

  46. Gas prices at the pump has nothing to do with the price of oil per barrel. Gas is sold by the cubic feet from the ground, and sold by the gallon at the pump. Oil is sold by the barrel. 2 different products being sold, 2 different investments. 2 different type of drilling procedures.. Foreign oil is flooding the market, therefore creating a drop in price due to lesser demand. Our drilling technology has improved double time in the past 10 years, our procedures are much more cost efficient. Saudi will fall before we do…

  47. Pioneer just sold all of their Barnett assets

  48. I believe America can be self efficient with Texas being in front seat, so we wouldn’t have to buy oil from people that hate us

  49. Your absolutely right Stephen Serna…

  50. Taylor Wiggy, yes I do know my oilfield. Been doing this for almost 15 years now. Steven Ross Yates, don’t believe what you read on the social media all the time.. I’m speaking from a Consultant’s chair (Company Man). Trust me…

  51. G.h. Schoenberg if there was a happy medium it would be nice for both sides but this doesn’t look to good some company’s around us are going to shut down an plug wells if the prices, get around mid 60s

  52. Yall cried when prices got high now yall cry when it drops. Social media full of mislead conspiracy. Go look at the facts

  53. All of the pioneer rigs started disappearing by the end of 2013 I didn’t even know they still had work in the eagle ford.

  54. EPA shut down a lot of refineries back in Clinton’s administration. It’s still possible but the govt is hindering this process entirely

  55. The facts are that shale wells play out much faster and cost more to drill than conventional wells. Therefore oil drops below 80 a barrel and it makes it tough to drill shale and make a profit. Its better for the us economy to have cheap oil but it does cost someone a job.

  56. Please name other industries Robert ?

  57. Pioneer has never had much working interest in the EF. Production in the Permian is greater than the EF.

  58. Construction, travel, retail, agriculture, mining, logging, manufacturing, energy, transportation, etc. Need I go on???

  59. Streamlining. This will clean things up and make them neater. Shale oil is still just settling in for the long haul.

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