Sunday, July 29, 2012

Haynesville Shale Rig Count Unchanged at 27

For the third straight week, the Haynesville Shale rig count held at 27, 14 in Louisiana and 13 in Texas.  Have we reached the bottom?  I don't know.  Word on the street has been that Petrohawk is going to drop to four (from five currently), and BP dropped off the list this week.  But Anadarko added another rig, bringing its count to eight, which is pretty amazing given that the company was running two to three rigs six months ago.  Nearly all of the Texas drilling activity is centered on Panola county, with 11 of the 13 Texas Haynesville wells drilling right now.



Friday, July 27, 2012

U.S. Rig Count: -11 to 1,924

The Baker Hughes rig count dropped by 11 rigs this week to 1,924.  Oil rigs were up two to 1,416, gas rigs were down 13 to 505 and miscellaneous rigs held at three.  By type, horizontal rigs were down 13 to 1,151, vertical rigs were down eight to 533 and directional rigs were up 10 to 240.  Among gas rigs only, horizontal  rigs were down 10 to 349, directional rigs were up one to 97 and vertical rigs were down four to 59.

Thursday, July 26, 2012

More Louisiana Completions

Earlier in the week, I published a batch of Louisiana completions, but here are a few more:
  • Baker 35-11-14 H #1, Chesapeake Operating: 10.104 MMcf/day IP on 22/64 in. choke at 4,860 psi; Perfs: 11,716-16,082, length: 4,366 ft.; Benson Field, DeSoto Parish, S35/T11/R14; res. A, serial #243831 
  • Weyerhaeuser Co 3 H #1-ALT, Encana Corp.: 20.297 MMcf/day IP on 23/64 in. choke at 7,852 psi; Perfs: 12,482-16,996, length: 4,514 ft.; Pleasant Hill Field, Sabine Parish, S3/T9/R12; res. A, serial #243833 

EIA: Storage +26 Bcf to 3.189 Tcf

The EIA working gas in storage report was up 26 Bcf this week to 3.189 Tcf.  The weekly injection was 46% below last year (+48 Bcf) and 57% below the five year average (+61 Bcf).  The current storage level is now 18.0% higher than last year (2.702 Tcf) and 15.8% above the five year average (2.754 Tcf).


Temperatures last week averaged 78.3 degrees across the country, 0.9 degrees warmer than last year and 3.0 degrees warmer than average.

Wednesday, July 25, 2012

Manufacturers Complain To Congress About Natural Gas Prices

Now that manufacturers have discovered inexpensive natural gas, they want to hog it all for themselves by keeping the price low.  This week, several representatives of the manufacturing industry testified before Congress in an effort to slow the adoption of new demand sources for natural gas, including CNG vehicles and LNG export.

While it is wonderful that we are seeing a "manufacturing renaissance" in the U.S., I certainly hope it is not based on $2.50/MMBtu.  That's just plain stupid.  Any business plan for an investment of hundreds of millions of dollars should at least be built on  a commodity price that allows producers to drill new wells for a reasonable profit (one can argue the definition of "reasonable").  That figure certainly is above $4/MMBtu for most production and even higher if we want to see the full production potential of natural gas.  You shouldn't bellyache to Congress if you can't make reasonable investment assumptions.

As I've said before, touting natural gas as a cheap solution is a mistake because users will set their price expectations too low.  It's clean; it's domestic; we have a large supply that should lower price volatility.  Cheap for now, yes, but that won't last forever.

We will have ample natural gas supply for decades if there is a reasonable price for the commodity.  That hasn't been the case for the past three years.  In fact, there hasn't been any "steady state" situation since the shale gas boom began in earnest five years ago.  Gas prices will impact the bottom lines of manufacturing businesses, but urging Congress to squelch the business opportunities for natural gas is not how a free market economy works.  I am sure manufacturers will point out subsidies that enhance the competitiveness of CNG, but if they want to complain about the breaks given to that industry, they need to look hard at breaks they also receive.

Sunday, July 22, 2012

Some More Louisiana Completions

It's not that often that the Shreveport Times scoops the LA DNR weekly Scout report (where I pick up 99% of my Louisiana completions), but sometimes the blind hog finds an acorn (I am not accusing the ST of incompetence - rather that is one of my father's old north Louisiana nuggets that I've always tried to slip into conversation, including times - like this one - where it is not really appropriate).  Here are eight new Haynesville completions, mostly by QEP Resources (formerly Questar), half of which are labeled as Cotton Valley.

  • Pedro 23 H #1-ALT, QEP Resouces: 12.145 MMcf/day IP on 18/64 in. choke at 8,275 psi; Perfs: 12,895-17,456, length: 4,561 ft.; Woodardville Field, Bienville Parish, S23/T15/R10; res. CV-B, serial #242355 
  • Pedro 23 H #2-ALT, QEP Resouces: 11.777 MMcf/day IP on 18/64 in. choke at 8,250 psi; Perfs: 12,920-17,481, length: 4,561 ft.; Woodardville Field, Bienville Parish, S23/T15/R10; res. CV-B, serial #242249

Josh Fox: Giving Ironic Hipsters Everywhere a Bad Name

The Associated Press ran a good article today citing the bad evidence on which many fracking critics are basing their objections.  Among the culprits is our favorite fictional documentarian Josh Fox, of Gasland fame, who has repeated an indefensible claim that breast cancer rates have spiked in the Barnett Shale region.  Public health authorities and breast cancer researchers have seen no such evidence but Fox is unrepentant.

Unfortunately, as with most contentious issues these days, there is little hope for middle ground on the fracking issue any time soon.  More likely, it will become less of an issue as people see no real negative impacts and tire of the battle.  It won't go away, but many of the foot soldiers will get bored and move on to the next perceived injustice.  That prediction my be my "famous last words" moment, but I'm sticking with it.

People, especially those with a profit motive like Josh Fox, will continue to stir the pot, but in the absence of real evidence, their arguments grow weaker by the day.  It's a good article - read it.

Haynesville Shale Rig Count Unchanged at 27

This week's Haynsville Shale rig count was unchanged at 27.  Louisiana held at 14 as did Texas at 13.



Friday, July 20, 2012

Priceless

I was reading the Wall Street Journal this evening when I happened upon an article, "Gas Prices Get Hot, Highest in Six Months." Natural gas prices have been inching up toward $3/MMBtu (and crossed over today) after half a year in the $1 and $2 range.  Toward the end of the article, I read this:


I love it:  natural gas prices of $3/MMBtu described as "lofty" and at "nose-bleed heights." I certainly don't suggest that gas has much room to run above $3, but it wasn't that long ago that prices below $4/MMBtu looked horrible.  I guess we've gotten so used to low prices that upward movement can make gas look "hot," especially a 64% gain from a sharp bottom three months ago.

Natural Gas Spot Price Clears $3/MMBtu

For the first time since late December 2011, the Henry Hub spot price of natural gas closed above $3 at $3.02/MMBtu. Given that this is not economic for Haynesville gas development, it is hardly reason to throw a party, but it is encouraging, especially given the fact that the price got down to $1.84/MMBtu in mid-April.

U.S. Rig Count: -18 to 1,935

The Baker Hughes U.S. rig count dropped by 18 this week to 1,935.  Oil rigs were down 13 to 1,414, gas rigs were down four to 518 and miscellaneous rigs were down one to three.  By type, horizontal rigs were down two to 1,164, vertical rigs were down 14 to 541 and directional rigs dropped two to 230.  Among gas rigs, horizontal rigs were down five to 359, directional rigs were up two to 96 and vertical rigs were down one to 63.

Another Batch of Louisiana Completions

Periodically, I make a sweep of Haynesville completions that were categorized as other formations, such as Cotton Valley or Jurassic.  These labels are a result of legacy categorizations from when the play was young and are only prevalent in certain sections.  I've been laying down on the job in recent months and a recent comment to a post inspired me to go digging for recent Haynesville completions not labeled as such.  Here are five that have missed the list for the past few months: 

  • Leonard Rd Frm 25 H #1-ALT, Petrohawk Operating: 7.074 MMcf/day IP on 14/64 in. choke at 7,530 psi; Perfs: 12,103-16,644, length: 4,541 ft.; Elm Grove Field, Caddo Parish, S36/T16/R13; res. LCV-A, serial #243703

Thursday, July 19, 2012

GE to Develop Cost Effective Home Fueling Station

GE has announced that it will develop a new compressed natural gas home fueling station with an estimated price tag of around $500.  This is a big deal in terms of making CNG more accessible for the consumer market since the only currently available model runs around $4,000.

I always talk about the chicken/egg problem vis-a-vis widespread use of CNG, so with this move in the right direction it looks like the chicken laid an egg.  Hopefully GE won't lay one with this new device.

New Louisiana Completions

  • CHK LA Min 3-13-12 H #1, Chesapeake Operating: 5.958 MMcf/day IP on 20/64 in. choke at 2,795 psi; Perfs: 14,047-17,008, length: 2,961 ft.; Red River-Bull Bayou Field, DeSoto Parish, S3/T13/R12; res. C, serial #241956 
  • Wilco Et Al. 35-12-11 H #1, Chesapeake Operating: 17.256 MMcf/day IP on 22/64 in. choke at 7,790 psi; Perfs: 12,706-17,179, length: 4,473 ft.; Red River-Bull Bayou Field, DeSoto Parish, S35/T12/R12; res. B, serial #244190
  • Caplis 23 H #1-ALT, Petrohawk (WSF): 7.943 MMcf/day IP on 14/64 in. choke at 7,892 psi; Perfs: 11,230-15,810, length: 4,580 ft.; Elm Grove Field, Bossier Parish, S26/T16/R12; res. LCV-A, serial #244353

Where Utilities Are Burning More Gas

The EIA is full of fun little graphs and charts (to go along with voluminous, mind-numbing reports). Today it published a map showing the deviation in 2011 from the previous five years of utilities burning natural gas.  This can indicate greater power use (i.e. higher aggregate consumption) and/or increased switching from coal.


The Southeast and Mid-Atlantic states seem to be driving much of the increased gas consumption.  It is interesting that Pennsylvania is the only big producing state in the dark blue column.  North Dakota is an outlier in its region, but maybe they are counting the intense light from gas flares as if it were generated by a utility.  Later in the decade, Colorado likely will be flipped because of the imminent retirement of coal plants and a few others might get bluer.  

EIA: Storage +28 Bcf to 3.163 Tcf

The EIA working gas in storage report showed a 28 Bcf net increase, bringing the total gas in storage to 3.163 Tcf.  The weekly injection was 58% lower than last year (+67 Bcf) and 62% below the five year average (+74 Bcf).  With the lower injection, the current storage level is now 19.2% above last year (2.654 Tcf) and 17.5% above the five year average (2.619 Tcf).


Temperatures last week averaged 78.1 degrees, which was 0.6 degrees warmer than last year and 3.3 degrees warmer than average.

Wednesday, July 18, 2012

Where Have All The Cowboys Gone?

It's no secret that the rig count in the Haynesville Shale has dropped dramatically over the past two years.  The decline is especially acute in 2012.  In digging through approved Texas permits today, it became clear that unless there is some major shift in gas prices, Haynesville drilling in Texas for the foreseeable future will fall to Anadarko and XTO Energy.

Just looking at rig counts over the past six months (below), one can see that Anadarko has actually added rigs, while previously big players have nearly dropped off the map.  Anadarko's share of operating rigs has increased from 16% at year end 2011 to 54% as of last week.  EXCO Resources' rig count has gone from six to zero, EOG Resources has gone from six to one and Chesapeake Energy has gone from three to zero.


Approved drilling permits are a somewhat reliable forward indicator of activity, and looking at these for the past six months, Anadarko looks to continue its leadership on the above chart.  Since the beginning of the year, it has filed 46% of the issued permits in the Texas Haynesville.  Since April 1, its permits represent 57% of the total.  The only other company to increase its share of permits is Valence, which saw five of its six 2012 permits approved since 2012.


There are no clear answers here other than the fact that Anadarko is busy (but for how long?), Valence is getting busy (for its size) and most everyone else is sitting on the sideline waiting for higher gas prices.

New Texas Permits

6/30/12 - 7/17/12:

  • Black Knights (SL) DU #3HB, XTO Energy; Carthage Field (Haynesville Shale), San Augustine Co. Co., Survey: DOUTHIE, A, A-106 
  • CGU 17 #51HH, Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: MILLER, W, A-454 

Tuesday, July 17, 2012

New Texas Completions

6/29/12 - 7/17/12:

  • Sadie GU #1H, Samson Lone Star: 4.834 MMcf/day IP, 10/64" choke, 9,700 psi; Perfs: 13,300-19,097, length: 5,797 ft.; Carthage Field (Haynesville Shale), Nacogdoches Co., Survey: CHIRINO, J A, A-17 
  • Blue Jay GU #1H, Samson Lone Star: 4.038 MMcf/day IP, 10/64" choke, 7,900 psi; Perfs: 13,197-18,459, length: 5,262 ft.; Carthage Field (Haynesville Shale), Nacogdoches Co., Survey: YBARBO, JI, A-60 

On The Subject of Exports...

Yesterday I referenced the growing debate in Washington about allowing more export of LNG from the U.S.  Here is an article that goes into more depth from both sides of the debate.  Since the dawn of shale gas coincided with the steep economic downturn in the U.S., the natural gas industry has been vigorous in pushing the concept of "cheap gas" to drive demand.  But now this message has gotten the industry into trouble as the perceived price of "cheap gas" has been set too low.  Now the manufacturing sector has begun to develop projects that are based on "cheap gas" and is eager to protect this new competitive advantage.

Since manufacturing is a lot more popular than the energy industry, the argument to prevent exports to keep the price of gas suppressed seems to be gaining some traction.  The debate is actually quite interesting, although gut-wrenching for gas fans, because it's not strictly partisan or regional.  There are a few of the usual suspects, like Massachusetts Rep. Ed Markey, who has proposed a moratorium on LNG export until 2025 because “low-priced natural gas is driving an American manufacturing renaissance,” but the big battle is between manufacturers and chemical plants and gas producers.  It is not being fought in the open, however, because nobody wants to look too greedy.

But the plain fact is that exports help balance the supply/demand equation to keep prices at a level where it is sustainable to drill profitably.  Yes, the gas industry seeks exports to be able to achieve higher commodity prices in the U.S. to make more money.  There, I said it.  This is a market economy.  It's ugly, but that's how it works. Shale gas has created an economic revolution of sorts and gives many businesses an opportunity to prosper.  The export potential has to be balanced against the manufacturing opportunity.  Both provide major economic potential for the U.S. and should be able to coexist.

I always hated studying economics because you always strive for equilibrium but you never actually get to stay there for any length of tiime.  You may drive by it quickly, but economic equilibrium is by nature unsustainable.  The more tools you have to moderate the supply/demand relationship, however, the more often you get to visit equilibrium.  And let me tell you, $2.75/MMBtu is nowhere near equilibrium.

Drill, Baby, Drill (But Slower)

As the presidential election approaches, we likely will hear the familiar refrains of "drill, baby, drill" from certain quarters, but those cries are pretty irrelevant these days as we see a glut of domestic oil building, especially given infrastructure constraints in getting oil to refineries.  The chart below should look eerily familiar to gas fans as crude oil supply grows and prices have been falling for several months.


Crude prices are in the $88/barrel range right now, so there is no imminent crisis at hand, but given the prowess of domestic drillers to extract oil from shale, one  has to wonder if the oil industry isn't going to be looking like the glutted gas industry soon.  Platts reports on a Raymond James analyst report projecting that West Texas Intermediate crude will drop to $65/barrel by 2013 on the supply issue, suggesting that $65 might be the break even threshold  (with 10% minimum return) for most new plays, but the Eagle Ford Shale might be profitable at $50.

The question remains, will oil producers be able to control themselves in the face of falling prices, especially in the Eagle Ford?

This year, the "drill, baby" political rallying cry has been replaced by the cries for the Keystone XL pipeline from Canada, but adding more (foreign) supply to the glutted system is hardly helpful.  With the southern half of the XL being built from Cushing, OK hub to the Houston refineries, a little pressure will be relieved, but with the drilling prowess of U.S. producers, more oil will rush into the system to fill the void.  It will be interesting to watch WTI oil prices over the next year to see if $65/barrel really does become reality and if so, how producers will react.

Monday, July 16, 2012

The Silver Lining

I'm not a fan of cheap natural gas, but it is an unavoidable condition these days given the advent of shale gas.  The silver lining of all this cheap gas in the southern part of the country is the rejuvenation of the U.S. manufacturing sector, which had pretty much been left for dead. Now there are a number of potential projects on the drawing board, and many of them are looking to locate in Louisiana for direct access to natural gas from the Haynesville Shale and cheap utility rates.  A good article in the New Orleans Times Picayune offers more details.

While inexpensive natural gas is creating new uses for the fuel that will help create long-term demand drivers to help moderate oversupply, l am a bit concerned that "cheap" gas will become too addictive.  Already, there are some in Washington making noise that the government shouldn't approve any more LNG export facilities because exporting U.S. gas may drive natural gas prices higher.

The current natural gas price cannot be sustained long term, but the longer prices stay this low, the more people will get used to them and think $4/MMBtu is outrageously high, when in fact it is barely break-even for most gas drilling.  In a couple of years will we be hearing cries of "expensive gas!!!" if prices get near $5/MMBtu?

Haynesville Shale Rig Count: -2 to 27

The Haynesville Shale rig count continues to go down, this week by two rigs to end up at 27 working rigs.  Louisiana dropped two to 14 while Texas held at 13.



Friday, July 13, 2012

U.S. Rig Count: -12 to 1,953 (Gas Rigs Down 20)

The Baker Hughes rig count showed a 20 rig decrease in U.S. rig count, bringing the total number of working rigs to 1,953.  Oil rigs were up eight to 1,427, gas rigs were down 20 to 522 and miscellaneous rigs  held at four.  By type, horizontal rigs were down eight to 1,166, vertical rigs were up six to 555 and directional rigs were down 10 to 232.  Among gas rigs, horizontal rigs were down 13 to 364, directional rigs were down seven to 94 and vertical rigs held at 64.


Thursday, July 12, 2012

Cheniere Receives $3.4 Billion to Build Facility

Cheniere Energy Partners, LP today received a commitment for project financing debt of $3.4 billion to complete the first two trains of its proposed liquefaction facility at Sabine Pass.  The company had already received a $2 billion commitment from Blackstone, so Cheniere now has raised $5.4 billion towards the project.

The new loan is expected to close before the end of the month, and construction should start in the third quarter of this year with completion some time in 2015 or 2016.  The second phase, also with two trains, is expected to begin construction in 2013 with completion in 2017 or 2018.  (Press release with more information)

New Louisiana Completions

(Note 7,935 foot lateral on Hamel well in Caddo Parish)
  • Caplis 15 H #1, Petrohawk (WSF): 8.191 MMcf/day IP on 14/64 in. choke at 7,904 psi; Perfs: 11,490-16,066, length: 4,576 ft.; Elm Grove Field, Bossier Parish, S22/T16/R12; res. A, serial #244124 
  • Hosier 35-15-11 H (recompletion) #1, Chesapeake Operating: 16.416 MMcf/day IP on 22/64 in. choke at 6,702 psi; Perfs: 11,890-15,623, length: 3,733 ft.; Swan Lake Field, Bossier Parish, S35/T15/R11; res. A, serial #240019 

EIA: Storage +33 Bcf to 3.135 Tcf

The EIA working gas in storage report showed a 33 Bcf net injection, bringing the total supply of gas in storage to 3.135 Tcf.  The weekly injection was 62% below last year (+87 Bcf) and 63% below the five year average (+90 Bcf).  The current storage level is 21.2% above last year (2.587 Tcf) and 19.7% above the five year average (2.619 Tcf).


Temperatures last week averaged 79.1 degrees across the country, 2.6 degrees warmer than last year and 5.1 degrees warmer than the 30 year average.  While the heat was stifling and led to increased demand on gas for power, there also were major power outages in the upper Mid-Atlantic and Appalachian.  I am not sure how the decreased demand from those power outages impacted overall electricity consumption. I'm sure someone has written about it, but I haven't gone looking for it.

Wednesday, July 11, 2012

Oil in Cass County

For all of you Texas oil rumor believers, the Oil and Gas Journal reported earlier this week that Pegasi Energy Resources Corp. reported a successful horizontal oil well in Cass County.  The Morse Unit #1 averaged 281 b/d of 40 degree gravity oil.  The find is in the "Jurassic Bossier shale" in the Rodessa field.  


That's north of the Haynesville/Bossier Shale as we describe it, but it certainly gives some credence to some interesting activity that has been observed in Marion County and other places nearby.  I haven't seen the TRRC filing pop up yet, but it will be interesting to review. The horizontal was supposedly 2,000 feet, but Pegasi is looking at doing 3,000 to 5,000 horizontals in the future.

Tuesday, July 10, 2012

Big Coal Fights Back (And So Does Black Lung)

We've noted recently that coal, long the dominant power behind electricity generation, is losing market share big time to natural gas because of the recent low price of gas.  Case in point is Patriot Coal's declaration of bankruptcy yesterday.  Gas prices are an immediate problem for coal, but there's an even bigger problem on the horizon as the federal government is finally taking a hard look at some of the externalities of burning coal, from strip mining large swaths of Appalachia to the high levels of carbon and particulate pollution emitted by burning coal.

But Big Coal was never one to turn a cheek when faced with a problem - just ask the miners who have tried to unionize over the past hundred years.  Now Big Coal is loudly positioning itself as a job creator, particularly in reaction to increased attention to "mountaintop removal" mining (a.k.a. strip mining).


Hmm, when did strip mining with gigantic power equipment become a huge job generator?

But Big Coal can't hide from its poor record of protecting the health and welfare of its workers or people living near its facilities, but that won't stop it from trying to obscure the facts.  It is employing advertising and good old intimidation to push its message in coal country, especially during this election season.  The ironic thing is that some of the evangelical supporters of coal mining - the workers - are the people most vulnerable to being victimized by it.

Monday, July 9, 2012

Haynesville Shale Rig Count: -3 to 29

The Haynesville Shale rig count dropped by three last week to 29.  Louisiana was down two to 16 and Texas was down one to 13.  Only three rigs separate Texas and Louisiana, which is the closest margin since drilling kicked of in earnest in the Haynesville Shale.



Friday, July 6, 2012

Kissing Cousins?

The EIA reported today that for the month of April 2012 power generation from coal and natural gas were approximately equal at 32%.  Technically, coal generated 96.0 million megawatthours while natural gas generated 95.9 million, but it's close enough to look like the lines are kissing on the chart below...


Wow.  The chart illustrates why natural gas storage levels have stayed at moderate levels for the pasts several months.

U.S. Rig Count: +6 to 1,965

The Baker Hughes rig count showed a six rig increase this week, bringing the number of working rigs in the U.S. to 1,965.  Oil rigs were down two to 1,419, gas rigs were up eight to 542 and miscellaneous rigs held at four.  Among gas rigs, horizontal rigs were up six to 377, directional rigs were up seven to 101 and vertical rigs were down five to 64.

By type among all wells, horizontal rigs were up three to 1,174, vertical rigs were down four to 549 and directional rigs were up seven to 242.

EIA: Storage +39 Bcf to 3.102 Tcf

The EIA working gas in storage report showed a 39 Bcf increase this week, bringing the total gas in storage in the U.S. to 3.102 Tcf.  The weekly injection was 57% below last year (+90 Bcf) and 51% below the five year average (+79 Bcf).  The current level is inching back into the normal range, but it still has a loooooong way to go.  The current level is 24.1% above last year (2.5 Tcf) and 22.7% above the five year average (2.45 Tcf).


Thursday, July 5, 2012

Only One New LA Completion This Week

  • Glover 24-15-11 H #1, Chesapeake Operating: 19.272 MMcf/day IP on 22/64 in. choke at 7,886 psi; Perfs: 11,874-16,131, length: 4,257 ft.; Swan Lake Field, Bossier Parish, S24/T15/R11; res. A, serial #243773

Monday, July 2, 2012

The Rational Middle

Until I started following the Haynesville Shale four years ago, I had not taken a deeply focused look at the energy industry.  What shocked me and continues to disappoint me is the level of misunderstanding about the big picture.  With the advent of the internet and hyperinformation, the trend has only gotten worse as the speed at which misinformation travels has grown exponentially.  And I'm not just talking about fracking and the fight over climate change.  We are living in a world where people are gravitating to highly polarized positions that are gradually sliding farther away from one another.  Rationality has been replaced by hysteria.

There is a void, a chasm, in the middle, the rational middle.  And that middle ground is just what Gregory Kallenberg is out to create through The Rational Middle Energy Series.  You might remember Kallenberg as the creator of the documentary "Haynesville. The Rational Middle is a series of short films that tries to get at the big picture of global energy. So far (in my viewing of the films) the driving concept is creating a "clean energy future" focusing on the fact that the world population continues to grow rapidly and people are becoming more affluent, which drives energy consumption even higher.  It's a vexing concept when you think about what is going on beyond our shores.

Unfortunately, for a series attempting to find middle ground, the attacks against it have already started.  The biggest issue is that the series is funded by Shell.  This fact is disclosed and discussed in the introductory film.  The filmmakers have creative and content control, but Shell is the cornerstone donor and that will create a credibility problem for many.  Not for me, though.

I just hope people will give the Rational Middle a chance, in the energy discussion and elsewhere in politics and general discourse.

Sunday, July 1, 2012

Haynesville Shale Rig Count: Unchanged at 32

The Haynesville Shale rig count was unchanged this week at 32, with one less rig operating in Louisiana (18) and one more operating in Texas (14).  But the big news was that Anadarko became the most active operator with seven rigs and for the first time in years, a jurisdiction other than DeSoto Parish hosted the most Haynesville rigs.  Panola Co. TX took the honor with eight.