Wednesday, October 1, 2014

LNG Fueling Facility to Open in Baton Rouge

Waller Marine and Tenaska NG Fuels, LLC, a subsidiary of Omaha-based energy company Tenaska, announced they would open a facility in Baton Rouge to liquefy natural gas for sale to natural gas powered trucks and marine vessels.  The facility will be located on 80 acres at the Port of Baton Rouge near Interstate 10 and US 190 and will be the first of its kind in Louisiana.  The owners expect to produce 200,000 gallons of LNG per day, with the ability to expand if demand warrants.  Given the proximity of the facility to the Haynesville Shale, it is likely that the Haynesville will be a good source of gas for the project.

The marine industry has justifiably come under increased scrutiny for the pollution it causes, and increased use of natural gas would be a welcome substitute for burning low grade bunker fuel, which is only a few steps above liquid asphalt.  While the use of LNG (not to be confused with CNG, which fuels smaller vehicles) as transport fuel is in its infancy, it is a viable future market that will increase consumption of natural gas (although not significantly) and diversify its user base.

Last Week's Louisiana Completions

  • Legrand 35+2-15-12 HC #1-ALT, Chesapeake Operating: 14.784 MMcf/day IP on 20/64 in. choke at 7,035 psi; Perfs: 12,267-17,438, length: 5,171 ft.; Red River-Bull Bayou Field, DeSoto Parish, S35/T15/R12; res. B, serial #247654 
  • Legrand 35+2-15-12 HC #2-ALT, Chesapeake Operating: 13.488 MMcf/day IP on 20/64 in. choke at 7,325 psi; Perfs: 12,165-17,372, length: 5,207 ft.; Red River-Bull Bayou Field, DeSoto Parish, S35/T15/R12; res. B, serial #247655 

Monday, September 29, 2014

Haynesville Shale Rig Count: -2 to 26

This week's Haynesville Shale rig count was down by two to 26.  Louisiana held at 21, but Texas dropped by two (both Anadarko) to five.  This is the lowest Texas count since the very early days of the Haynesville Shale six years ago.


Friday, September 26, 2014

U.S. Rig Count Unchanged at 1,931

For the second straight week, the Baker Hughes U.S. rig count held at 1,931.  Oil rigs were down nine to 1,592, gas rigs were up nine to 338 and miscellaneous rigs were unchanged at one.  (Oddly, this is the exact same rig count from September 12.)  By type, horizontal rigs were up six, vertical rigs were down five and directional rigs were down one.  Among gas rigs, horizontal rigs were down two to 239, directional rigs were up three to 62 and vertical rigs were up eight to 37.

Thursday, September 25, 2014

EIA: Gas in Storage +97 Bcf to 2.988 Tcf

The EIA reported this morning that working gas in storage was up 97 Bcf to 2.988 Tcf.  The injection was 18% above last year (+82 Bcf) and 23% above the five year average (+79 Bcf).  The current storage level is now 11.4% below last year (3.374 Tcf, a difference of 386 Bcf) and 12.5% below the five year average (3.414 Tcf, a difference of 426 Bcf).

To date in 2014, storage has added 2.166 Tcf since it bottomed out in early April. By comparison, the total storage add in 2013 injection season was 2.161 Tcf from early April to mid-November.  The storage add in 2014 is at the 2013 level and there are +/-7 weeks left in the injection season.

Wednesday, September 24, 2014

Haynesville Shale Rig Count Unchanged at 28

Last week's Haynesville Shale rig count was unchanged at 28.  Louisiana held at 21, while Texas held at seven.


Friday, September 19, 2014

U.S. Rig Count: Unchanged at 1,931 (But Gas Rigs -9)

The Baker Hughes U.S. rig count was unchanged this week.  Oil rigs were up nine to 1,601, gas rigs were down nine to 329 and miscellaneous rigs were unchanged at one.  By type, horizontal rigs were down one to 1,341, vertical rigs were up six to 378 and directional rigs were down five to 212.  Among gas rigs, horizontal rigs were down five to 241, directional rigs were down five to 59 and vertical rigs were up one to 29.

Recent Louisiana Completions

The following completions cover the past two weeks:
  • LSU 30 H #1, Petrohawk Operating: 8.46 MMcf/day IP on 16/64 in. choke at 7,125 psi; Perfs: 12,036-16,503, length: 4,467 ft.; Elm Grove Field, Bossier Parish, S31/T17/R12; res. A, serial #246245 
  • Evans 4 H (recomp) #1, Petrohawk Operating: 8.122 MMcf/day IP on 16/64 in. choke at 6,497 psi; Perfs: 12,084-16,514, length: 4,430 ft.; Caspiana Field, DeSoto Parish, S9/T14/R12; res. A, serial #240277 

Thursday, September 18, 2014

EIA: Gas in Storage +90 Bcf to 2.891 Tcf

The EIA reported this morning that working gas in storage was up 90 Bcf to 2.891 Tcf.  The weekly injection was 88% greater than last year (+48 Bcf) and 27% above the five year average (+71 Bcf). The current storage level continues to creep up.  It is 12.2% below last year (3.292 Tcf, a difference of 401 Bcf) and 13.3% below the five year average (3.335 Tcf, a difference of 444 Bcf).


Monday, September 15, 2014

Haynesville Rig Count: +1 to 28

The Haynesville Shale rig count was up one rig last week to 28.  Louisiana was up one (Petrohawk/BHP) to 21, while Texas held at seven.  Louisiana's Haynesville rig count is the highest it's been since June 2012 at the tail end of the Great Rig Migration.


Friday, September 12, 2014

U.S. Rig Count: +6 to 1,931

The Baker Hughes U.S. rig count was up six rigs this week to 1,931.  Oil rigs were up eight to 1,592, gas rigs were down two to 338 and miscellaneous rigs were unchanged at one.  By type, horizontal rigs were up nine to 1,342, vertical rigs were up four to 372 and directional rigs were down seven to 217.  Among gas rigs, horizontal rigs were down seven to 246, directional rigs were up three to 64 and vertical rigs were up two to 28.

Thursday, September 11, 2014

EIA: Gas in Storage +92 Bcf to 2.801 Tcf

The EIA announced this morning that working gas in storage was up 92 Bcf to 2.801 Tcf.  The weekly injection was 44% above last year (+64 Bcf) and 53% greater than the five year average (+60 Bcf).  The current storage level is now 13.7% below last year (3.244 Tcf, a difference of 443 Bcf) and 14.2% below the five year average (3.264 Tcf, a difference of 463 Bcf).


FERC Approves Cameron LNG

Yesterday, Cameron LNG, LLC received approval from the Federal Energy Regulatory Commission to build and operate facilities necessary to liquefy and export natural gas from its existing import terminal near Hackberry, LA.  FERC also approved the application to build pipeline and compression facilities to source the gas for export.  Until yesterday, only Cheniere's Sabine Pass facility has received this approval, which should be the last regulatory hurdle to constructing the facility.

The Cameron facility is expected to cost between $9 and $10 billion and be placed in service in 2017.  Plans call for three liquefaction trains, and the facility should be able to export a maximum of 2.33 Bcf/day when fully implemented.  Cameron LNG is majority owned by Sempra Energy Corp. in partnership with GDF Suez SA, Mitsubishi Corp. (through a related company jointly established with Nippon Yusen Kabushiki Kaisha) and Mitsui & Co. Ltd.

Wednesday, September 10, 2014

Haynesville Shale Rig Count: +1 to 27

Last week's Haynesville Shale rig count was up one to 27.  Louisiana was up one to 20 (Chesapeake), while Texas held at seven.


Friday, September 5, 2014

New Texas Completions

7/18/14 - 9/4/14:
  • Ural #B1SL, XTO Energy: 29.46 MMcf/day IP, 14/64" choke, 5,962 psi; Perfs: 11,950-17,526, length: 5,576 ft.; Carthage Field (Haynesville Shale), Shelby Co., Survey: HALEY, MA, A-276 
  • Black Knights (SL) DU #H3, XTO Energy: 6.599 MMcf/day IP, 16/64" choke, 6,742 psi; Perfs: 13,310-19,263, length: 5,953 ft.; Carthage Field (Haynesville Shale), San Augustine Co., Survey: DOUTHIE, A, A-106 

U.S. Rig Count: +11 to 1,925

The Baker Hughes U.S. rig count was up 11 this week to 1,925.  Oil rigs were up nine to 1,584, gas rigs were up two to 340 and miscellaneous rigs held at one.  By type, horizontal rigs were up three to 1,333, vertical rigs were down six to 368 and directional rigs were up 14 to 224.  Among gas rigs, horizontal rigs were up five to 253, directional rigs were down four to 61 and vertical rigs were up one to 26.

New Texas Permits

7/7/14 - 9/3/14:
  • W.L. Liston #11H, XTO Energy; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: ROBERTS, H, A-562 
  • OB #H 1, XTO Energy; Carthage Field (Haynesville Shale), Shelby Co. Co., Survey: MCKEY, TJ, A-473 

Thursday, September 4, 2014

Louisiana Completions (Since Mid-July)

OK, so I got behind reporting completions.  I assure you, I've been busy with other matters.  Here we go, dating back to July 23:

  • LP Garner Et Al. 5 H #1, XTO Energy: 8.9 MMcf/day IP on 32/64 in. choke at 7,100 psi; Perfs: 12,315-16,979, length: 4,664 ft.; Lake Bistineau Field, Bienville Parish, S5/T16/R9; res. A, serial #247138 
  • AR Collins 18 H #2-ALT, XTO Energy: 5.5 MMcf/day IP on 18/64 in. choke at 5,100 psi; Perfs: 10,977-15,330, length: 4,353 ft.; Lake Bistineau Field, Bienville Parish, S18/T16/R9; res. A, serial #247340 

EIA: Gas in Storage +79 Bcf to 2.709 Tcf

The EIA reported this morning that working gas in storage was up 79 Bcf to 2.709 Tcf. The weekly injection was 32% above last year (+60 Bcf) and 41% greater than the five year average (+56 Bcf). The current storage level is now 14.8% below last year (3.18 Tcf, a difference of 471 Bcf) and 15.4% below the five year average (3.204 Tcf, a difference of 495 Bcf).


Tuesday, September 2, 2014

Haynesville Shale Rig Count: -1 to 25

Last week's Haynesville Shale rig count was down one to 25.  Louisiana was down one (Chesapeake) to 19, while Texas held at seven.  In Texas, Nacogdoches Co. saw its first Haynesville rig since last November.


Friday, August 29, 2014

U.S. Rig Count: +18 to 1,914

The Baker Hughes U.S. rig count was up 18 this week to 1,914.  Oil rigs were up 11 to 1,575, gas rigs were up eight to 338 and miscellaneous rigs were down one to one.  By type, horizontal rigs were up nine to 1,330, vertical rigs were up eight to 374 and directional rigs were up one to 210.  Among gas rigs, horizontal rigs were up six to 248, directional rigs were up two to 65 and vertical rigs were unchanged at 25.

Thursday, August 28, 2014

EIA: Gas in Storage +75 Bcf to 2.63 Tcf

The EIA reported that working gas in storage was up 75 Bcf to 2.63 Tcf.  The weekly injection was 15% above last year (+65 Bcf) and 29% greater than the five year average (+58 Bcf).  The current storage level is now 15.7% below last year (3.12 Tcf, a difference of 490 Bcf) and 16.5% below the five year average (3.148 Tcf, a difference of 518 Bcf).


Monday, August 25, 2014

Haynesville Shale Rig Count: +1 to 27

The Haynesville Shale rig count was up one this week to 27.  Louisiana was up one to 20 (J-W), while Texas held at seven.


Friday, August 22, 2014

U.S. Rig Count: -17 to 1,896

The Baker Hughes U.S. rig count was down 17 rigs this week to 1,896.  Oil rigs were down 25 to 1,564, gas rigs were up nine to 330 and miscellaneous rigs were down one to two.  By type, horizontal rigs were down eight to 1,321, vertical rigs were down two to 366 and directional rigs were down seven to 209.  Among gas rigs, horizontal rigs were up seven to 242, directional rigs were up one to 63 and vertical rigs were up one to 25.

Thursday, August 21, 2014

EIA: Gas in Storage +88 Bcf to 2.555 Tcf

The EIA reported that working gas in storage was up 88 Bcf last week to 2.555 Tcf.  The weekly injection was 52% above last year (+58 Bcf) and 83% greater than the five year average (+48 Bcf).  The current storage level is now 16.4% below last year (3.055 Tcf, a difference of 500 Bcf) and 17.3% below the five year average (3.090 Tcf, a difference of 535 Bcf).


As the chart below shows, the 2014 storage deviation from the five year average (red line) continues to be a mirror image of the same data from 2012 (light blue line) when a warm winter badly shocked the storage numbers and crushed natural gas prices.