Energy Prospectus

This is a very informative article. Just one of my take aways was that Eagle Ford is probably not the place for me to be investing (approx % decline rate 9%).

Also ""The drilled but uncompleted well inventory (“DUC”) is back to normal, so the number of wells being drilled and the number of wells being completed is now about the same. ""

http://peakoilbarrel.com/usa-oil-production/

The opening paragraph and the chart is taken directly from the article that I wrote for OilPrice.com

The Eagle Ford decline rate is probably higher just because there is a lot less drilling activity. The Eagle Ford does have a much smaller amount of Tier One leasehold, but the "Sweet Spots" are real good. Plus, a lot of the early Eagle Ford wells were not completed properly (per Frank Bracken and others I've talked to). Placing the laterals in the right part of the zone and targeted frac jobs in key to good Eagle Ford wells.

I sent you Tuesday's report from Raymond James that confirms that U.S. oil production has stopped growing and the EIA has been overstating U.S. oil production month-after-month. As the article you posted states, EIA's weekly numbers are just "Wild Ass Guesses".

If we have gone from a period of completing DUC's plus drilling new wells, to now only drilling and having only current wells to complete then there is no way that the industry can increase production. I think that's very bullish since the number of rigs is also dropping.

Read the RJ report that I emailed to you. Yes, it is very bullish for oil prices that U.S. oil production growth has stopped. IEA's global supply/demand forecast has the U.S. coming up with most of the global supply growth each year. U.S. oil production will be up year-over-year only because we started at a much higher point.

From here there is NO WAY oil production can grow at the current active drilling rig count.