Thursday, July 2, 2015

U.S. Rig Count: +3 to 862

Seems like old times:  oil rigs up, gas rigs down!  Oil rigs were up 12 this week to 640, while gas rigs were down nine to 219 and miscellaneous rigs were unchanged at three.  This week finally breaks the streak of 29 straight weeks of declining oil rigs, a period when the rig count fell from 1,575 to 628, a decrease of 947 rigs, or 60%.

By type, horizontal rigs were up three to 657, vertical rigs were up one to 108 and directional rigs were down one to 97.  Among gas rigs, horizontal rigs were down four to 160, directional rigs were down three to 45 and vertical rigs were down two to 14.

EIA: Gas in Storage +69 Bcf to 2.577 Tcf

The EIA announced this morning that working gas in storage was up 69 Bcf to 2.577 Tcf.  The weekly injection was 32% below last year (+102 Bcf) and 8% below the five year average (-75 Bcf).  The current storage level is now 34.6% above last year (1.915 Tcf, a difference of 662 Bcf) and 1.1% above the five year average (2.548 Tcf, a difference of 29 Bcf).



Friday, June 26, 2015

U.S. Rig Count: +2 to 859

Breaking a six month losing streak, the Baker Hughes U.S. rig count was up by two rigs this week to 859.  Oil rigs were still down - but only by three - to 628, gas rigs were up five to 228 and miscellaneous rigs were unchanged at three.  By type, horizontal rigs were down eight to 654, vertical rigs were up seven to 107 and directional rigs were up three to 98.  Among gas rigs, horizontal rigs were down one to 164, directional rigs were up four to 48 and vertical rigs were up two to 16.

Thursday, June 25, 2015

More New Louisiana Completions

  • FR Farms 10+3-15-11 HC #1-ALT, Chesapeake Operating: 13.104 MMcf/day IP on 20/64 in. choke at 6,519 psi; Perfs: 12,060-17,412, length: 5,352 ft.; Swan Lake Field, Bossier Parish, S10/T15/R11; res. A, serial #248193 
  • C E Peace 25 #2-ALT, J-W Operating: 7 MMcf/day IP on 16/64 in. choke at 5,975 psi; Perfs: 12,110-16,511, length: 4,401 ft.; Caspiana Field, DeSoto Parish, S24/T15/R13; res. A, serial #247423 

EIA: Gas in Storage +75 Bcf to 2.508 Tcf

The EIA announced this morning that working gas in storage was up 75 Bcf last week to 2.508 Tcf.  The injection was 13% lower than last year (+86 Bcf) and 32% below the five year average (+110 Bcf).  The current storage level is now 38.3% higher than last year (1.813 Tcf, a difference of 695 Bcf) and 1.4% above the five year average (2.473 Tcf, a difference of 35 Bcf.


Wednesday, June 24, 2015

Mid-Bossier Shale List Updated

I've updated the Mid-Bossier list of completions and map with two completions noted in investor materials by Chesapeake back in May.  Here is the official numbers on them (which I previously reported but didn't differentiate as Mid-Bossier):

  • CHK Min 28-10-13 H #2-ALT, Chesapeake Operating: 15.528 MMcf/day IP on 22/64 in. choke at 6,700 psi; Perfs: 11,884-16,337, length: 4,453 ft.; Converse Field, Sabine Parish, S28/T10/R13; res. Mid-Bos, serial #248565 
  • Bedsole 1-10-13 H #2-ALT, Chesapeake Operating: 15.024 MMcf/day IP on 20/64 in. choke at 6,948 psi; Perfs: 12,184-16,920, length: 4,736 ft.; Benson Field, DeSoto Parish, S1/T10/R13; res. Mid-Bos, serial #248807

Recent Louisiana Completions

  • EMW 29-32 HC #1-ALT, BHP Billton: 8.254 MMcf/day IP on 16/64 in. choke at 7,730 psi; Perfs: 11,720-17,019, length: 5,299 ft.; Caspiana Field, Caddo Parish, S20/T15/R12; res. A, serial #248053 
  • EMW 20-17 HC #1-ALT, BHP Billton: 9.43 MMcf/day IP on 16/64 in. choke at 7,303 psi; Perfs: 11,665-16,795, length: 5,130 ft.; Caspiana Field, Caddo Parish, S20/T15/R12; res. A, serial #248059 

Tuesday, June 23, 2015

Rig Map Updated

Bowing to pressure, I've updated the rig map.  Here is the link, and here is a frozen image (red stars are current, blue dots are from 5/15/15):

Monday, June 22, 2015

Haynesville Shale Rig Count Unchanged at 21

The Haynesville Shale rig count was unchanged at 21 last week.  Louisiana held at 11 (Chesapeake down one, Vine up one) and Texas held at 10.


Friday, June 19, 2015

Shale Isn't Going Away

A quick note for a Friday afternoon.  I have been reading lots of comments and headlines about bankruptcies, both actual and potential, in the oil and gas industry, particularly among companies focused on shale.  There is no doubt that there will a huge fallout from low oil and gas prices, but some doomsayers are suggesting that the whole "shale industry" will collapse.  To me, that's a terribly naive thought.  Yes, many companies will go under and thousands will lose their jobs, but the oil and gas resources aren't going anywhere and the technology is only improving. Picking up from the ashes is what we as Americans do very well (something I think the Saudis don't fully appreciate).  The players may change and the output may slow for a while, but the shale oil and gas industry be here for a long time.

U.S. Rig Count: -2 to 857

The Baker Hughes U.S. rig count is down only two this week to 857, the smallest decline in the past 28 weeks.  Oil rigs were down four to 631, gas rigs were up two to 223 and miscellaneous rigs were unchanged at three.  By type, horizontal rigs were down one to 662, vertical rigs were down one to 100 and directional rigs were unchanged at 95.  Among gas rigs, horizontal rigs were up two to 165, directional and vertical rigs were unchanged at 44 and 14, respectively.

Thursday, June 18, 2015

EIA: Gas in Storage +89 Bcf

The EIA announced that working gas in storage was up 89 Bcf to 2.433 Tcf.  The weekly injection broke a recent string of triple digit injections and was 21% lower than last year (+112 Bcf) and was largely in line with the five year average (+87 Bcf).  This is the approximate point in time last year when the enormous deficit in storage started to erode.  The current storage level is now 42.9% above last year (1.703 Tcf, a difference of 730 Bcf) and 1.9% above the five year average (2.387 Tcf, a difference of 46 Bcf).


Wednesday, June 17, 2015

Honda Axes CNG Civic

After selling only 16,000 CNG fueled Civics in the U.S. since 1998, Honda finally pulled the plug on the CNG Civic.  The company will also abandon a gasoline-electric hybrid Civic and plug-in hybrid Accord in favor of a hydrogen-fuel-cell car for 2016 and a full electric vehicle for 2018.  With low oil prices potentially on the horizon for a while, the writing was on the wall.

The Civic was one of the few hopes for widespread CNG adoption for passenger vehicles, but it proved to be a Quixotic venture.  Ultimately, the success of mass market CNG is dependent on adoption by fleet vehicles and commercial trucks and the infrastructure that will follow (larger interstate trucks will likely prefer LNG, which is inappropriate for passenger vehicles).  Although, even if almost every delivery truck on the road is fueled by CNG, it doesn't mean the corner Chevron station will have it.

In my opinion, CNG will always be a niche fuel in the passenger market, as electric hybrids and other technologies offer more fueling flexibility.

Monday, June 15, 2015

Haynesville Shale Rig Count: +1 to 21

The Haynesville Shale rig count was up one last week to 21.  Louisiana held at 11 (Chesapeake was up one, J-W was down one) and Texas was up one to 10 (Sabine has a new rig).  The Sabine rig is interesting:  we've discussed the company's financial issues as recently as yesterday, but it seemed to have lost interest in drilling the Haynesville.  But we haven't seen an investor presentation from them since they combined with Forest Oil.  They've been in a distressed situation since last summer, so they have had other fish to fry instead of going to analyst meetings, therefore it's hard to say what they are up to from an operational perspective.

Sabine on the Clock

Sabine Oil and Gas announced this morning that it will not be making a $21 million interest payment due today on its 2019 senior notes.  The company exercised its rights to a grace period that gives it another 30 days to make the payment before the loan goes into default.  Sabine was already on the clock with most of its debt holders, as it had negotiated a forbearance agreement with is revolver and its second lien facility, but the clock is ticking even louder now.

Sabine says it still has $276.9 million in cash and is able to fund its operations and pay its suppliers and trade creditors, but I'm sure trade terms are tightening and knuckles are getting whiter by the day.

Friday, June 12, 2015

U.S. Rig Count: -9 to 859

The Baker Hughes U.S. rig count was down nine this week to 859.  Oil rigs were down seven to 635, gas rigs were down one to 221 and miscellaneous rigs were down one to three.  By type, horizontal rigs were down ten to 663, vertical rigs were up two to 101 and directional rigs were down one to 95.  Among gas rigs, horizontal rigs were down two to 163, directional rigs were up one to 44 and vertical rigs were unchanged at 14.

Thursday, June 11, 2015

New Texas Completions

5/5/15 - 6/10/15:
  • Soape, A.C. Gas Unit Allocation #15H, BP America: 5.4 MMcf/day IP, -/64" choke, 5,015 psi; Perfs: 11,041-19,500, length: 8,459 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: OWEN, J, A-522 
  • Soape, A.C. Gas Unit Allocation #17H, BP America: 5.473 MMcf/day IP, -/64" choke, 5,305 psi; Perfs: 11,445-18,869, length: 7,424 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: OWEN, J, A-522 

Only Three New Texas Permits in Past Month

5/5/15 - 6/10/15:
  • Watson-Holloway Alloc #1H, EXCO Resources; Carthage Field (Haynesville Shale), San Augustine Co., Survey: STEPHENS, JR, A-442 
  • Baggett Gas Unit #H 2, XTO Energy; Carthage Field (Haynesville Shale), Shelby Co., Survey: REZIA JARVIS, A-385 
  • New Horizons #O 2H, XTO Energy; Carthage Field (Haynesville Shale), Panola Co., Survey: KNOLL, P , A-375

New Louisiana Completions

  • ABG 30+31-14-11 HC #3-ALT, Chesapeake Operating: 6.81 MMcf/day IP on 20/64 in. choke at 3,636 psi; Perfs: 12,267-17,878, length: 5,611 ft.; Red River-Bull Bayou Field, DeSoto Parish, S30/T14/R11; res. D, serial #247563 
  • ABG 30+37-14-11 HC #2-ALT, Chesapeake Operating: 13.658 MMcf/day IP on 20/64 in. choke at 7,120 psi; Perfs: 12,724-17,850, length: 5,126 ft.; Red River-Bull Bayou Field, DeSoto Parish, S30/T14/R11; res. D, serial #247603 

EIA: Natural Gas in Storage +111 Bcf to 2.344 Tcf

The EIA announced this morning that working gas in storage was up 111 Bcf to 2.344 Tcf.  The weekly injection was in line with last year (+109 Bcf) but 25% above the five year average (+89 Bcf).  The current storage level is now 47.2% above last year (1.591 Tcf, a difference of 753 Bcf) but 1.9% above the five year average (2.3 Tcf, a difference of 44 Bcf).


Tuesday, June 9, 2015

Haynesville Shale Rig Count: +1 to 20

Last week's Haynesville Shale rig count was up one to 20.  Louisiana was up one (Anadarko) to 11, while Texas held at nine.


Friday, June 5, 2015

New Louisiana Completions

  • Nguyen 5+8-15-14 HC #1-ALT, Chesapeake Operating: 16.896 MMcf/day IP on 22/64 in. choke at 8,047 psi; Perfs: 12,025-19,684, length: 7,659 ft.; Caspiana Field, Caddo Parish, S32/T16/R14; res. A, serial #248791 
  • Nguyen 5+8-15-14 HC #2-ALT, Chesapeake Operating: 15.552 MMcf/day IP on 22/64 in. choke at 7,755 psi; Perfs: 12,025-19,693, length: 7,668 ft.; Caspiana Field, Caddo Parish, S32/T16/R14; res. A, serial #249792 
(The above are the longer completions CHK referenced in its recent conference call.)

U.S. Rig Count: -7 to 868

The Baker Hughes U.S. rig count was down seven this week to 868.  Oil rigs were down four to 642, gas rigs were down three to 222 and miscellaneous rigs were unchanged at four.  By type, horizontal rigs were down one to 673, vertical rigs were down 12 to 99 and directional rigs were up six to 96.  Among gas rigs, horizontal rigs were up one to 165, directional rigs were up one to 43 and vertical rigs were down five to 14.

Thursday, June 4, 2015

EPA Finds No "Widespread, Systemic Impacts on Drinking Water"

The EPA released its long-awaited draft study, "Assessment of the Potential Impacts of Hydraulic Fracturing for Oil and Gas on Drinking Water Resources" today.  In examining "below ground mechanisms by which hydraulic fracturing activities have the potential to impact drinking water resources," the EPA concluded:
"We did not find evidence that these mechanisms have led to widespread, systemic impacts on drinking water resources in the United States."
The report does say that there is the potential for spills and leaks.  It also points out the vulnerabilities in the water life cycle in fracking, especially in disposal.  But the major finding is that there isn't a systemic problem with drinking water.

It's a big win for the oil and gas community.  Will it change the debate much?  Probably not.

A Hopeful Piece on Natural Gas in Truck Transport

Check out this short article in the Houston Chronicle about prospects for natural gas use, both through CNG and LNG, in truck transport.  It's something we've discussed in the past on this site, but it was always a chicken-and-egg proposition with fueling infrastructure.  In recent years, more eggs seem to be hatching and natural gas for local and regional fleets is more feasible.  Another factor playing in favor of natural gas, other than growing supply and low prices, is the relatively fast turnover of truck fleets, which gives decision makers more opportunities to give natural gas a try.

If true, it's more bad news for oil.