Thursday, December 13, 2012

No New Louisiana Completions This Week

Things have really slowed down in the Haynesville Shale.  This week, there are no new Louisiana completions to report.  In the past several months, there were only 20 Louisiana completions in August, 2012 (actually completed, not reported), 15 in September and five so far in October.  While we would expect to see completions continue to decline, the lack of reported completions speaks volumes about the lack of activity.  By comparison, in 2011, a down year for the Haynesville, there were 71 completions in August, 67 in September and 56 in October.

As the chart below shows, declining completions certainly make sense with the declining rig count.  There is still a backlog of uncompleted wells, but they don't seem to be going anywhere fast.

This chart also shows that when gas prices do pick up, you will first see a wave of completions before you see a bunch of new rigs.

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