Friday, December 27, 2013

U.S. Rig Count: -11 to 1,757

The Baker Hughes U.S. rig count was down 11 this week to 1,757.  Oil rigs were down 13 to 1,382, gas rigs were up two to 374 and miscellaneous rigs were unchanged at one.  By type, horizontal rigs were up six to 1,146, vertical rigs were down 18 to 387 and directional rigs were up one to 224.  Among gas rigs, horizontal rigs were up three to 273, directional rigs were up two to 71 and vertical rigs were down three to 30.

EIA: Storage Down 177 Bcf to 3.071 Tcf

The EIA reported this week that working gas in storage was down 171 Bcf to 3.071 Tcf.  The weekly withdrawal was 139% greater than last year (-74 Bcf) and 42% above the five year average (-125 Bcf). The current storage level is now 16.1% below last year (3.662 Tcf) and 9.2% below the five year average (3.384 Tcf).


Monday, December 23, 2013

Haynesville Shale Rig Count: -1 (from two weeks ago) to 27

OK, so I circumstances prevented me from posting the rig count last week, so here's the bottom line:  two weeks ago, the rig count was down one to 26 and last week it was back up one to 27.  Net-net after two weeks, Louisiana was down one (Encana) to 18 while Texas was unchanged at nine.


Friday, December 20, 2013

U.S. Rig Count: -14 to 1,768

The Baker Hughes U.S rig count was down 14 this week to 1,768.  Oil rigs were down 16 to 1,395, gas rigs were up three to 372 and miscellaneous rigs were down one to one.  By type, horizontal rigs were down five to 1,140, vertical rigs were down two to 405 and directional rigs were down seven to 223.  Among gas rigs, horizontal rigs were up seven to 270, directional rigs were down six to 69 and vertical rigs were up two to 33.

Thursday, December 19, 2013

Zoikes! Storage Down 285 Bcf to 3.248 Tcf

EIA reported that working gas in storage was down 285 Bcf to 3.248 Tcf.  The weekly withdrawal was 307% greater than last ear (-70 Bcf) and 114% above the five year average (-133 Bcf).  The current storage level is now 13.1% below last year (3.736 Tcf) and 7.4% below the five year average (3.509 Tcf).


The 285 Bcf withdrawal was the largest single withdrawal from storage since 2008 (when I started watching this).  As shown below, the 7.4% deviation below the five year average is the greatest in two years and I suspect even longer (at least five to six years, although I'm too lazy right now to calculate it).

Wednesday, December 18, 2013

EXCO 2014 Capital Budget Announced

EXCO Resources announced its 2014 capital budget yesterday.  The company will spend $368 million, $294 million of which will be spent on drilling and completion.  Of the D&C figure, $173 million (59%) will be spent on the Haynesville, where the company plans to run 4 rigs.  Another $11 million will be spent in the Haynesville outside of D&C.  In 2014 EXCO plans to spud 42 gross Haynesville wells (32% of the company's total), which represents 20.5 net wells (57% of total).  Most of that budget, 70%, will be spent in the Holly area of DeSoto Parish.  The plan there is to develop seven units on 107 acre spacing with 4,200 foot laterals and 14 frac stages.

EXCO also plans to complete eight gross wells (3.2 net) in the Shelby area of San Augustine Co., TX, where it will use longer laterals (~7,000 feet) with more proppant per completed lateral foot and a more restricted flowback technique.  The Texas wells are a test that the company believes might yield strong returns in a low natural gas price environment and might be a platform for future development.

Friday, December 13, 2013

Two Weeks Worth of Louisiana Completions

  • Long 3 #4-ALT, EXCO Operating: 9.864 MMcf/day IP on 16/64 in. choke at 7,499 psi; Perfs: 12,506-16,945, length: 4,439 ft.; Caspiana Field, DeSoto Parish, S10/T14/R14; res. A, serial #246301 
  • James 3 #4-ALT, EXCO Operating: 10.697 MMcf/day IP on 17/64 in. choke at 7,712 psi; Perfs: 12,038-16,476, length: 4,438 ft.; Caspiana Field, DeSoto Parish, S10/T14/R14; res. A, serial #246303 

U.S. Rig Count: +7 to 1,782

The Baker Hughes U.S. rig count was up seven this week to 1,782.  Oil rigs were up 14 to 1,411, gas rigs were down six to 369 and miscellaneous rigs were down one to two.  By type, horizontal rigs were up eight to 1,145, vertical rigs were down eight to 407 and directional rigs were up seven to 230.  Among gas rigs, horizontal rigs were up one to 263, directional rigs were up three to 75 and vertical rigs were down ten to 31.

Thursday, December 12, 2013

Last Week's Haynesville Shale Rig Count: +4 to 28

The Haynesville Shale rig count was up four last week to 28, as Chesapeake showed renewed interest in the play.  Louisiana was up four to 19 (all CHK), while Texas held at nine (EOG +1, Encana -1).  Six rigs is the most Chesapeake has run in the Haynesville since April 2012.  The Louisiana rig count is the highest since June 2012.  In Texas, all of the Haynesville-labeled rigs are now operating in Panola Co.


EIA: Storage Down 81 Bcf to 3.533 Tcf

The EIA working gas in storage report showed an 81 Bcf withdrawal, bringing the current working gas in storage to 3.533 Tcf.  The weekly withdrawal was ten times greater than last year's (-8 Bcf) and 7% greater than the five year average (-76 Bcf).  The current storage level is 7.2% below last year (3.806 Tcf) and 3.0% below the five year average (3.642 Tcf).


Temperatures last week averaged 41.9 degrees, which was 6.3 degrees cooler than last year but 1.6 degrees warmer than average.

Friday, December 6, 2013

U.S. Rig Count: +12 to 1,775

The Baker Hughes U.S. rig count was up 12 this week to 1,775.  Oil rigs were up six to 1,397, gas rigs were up eight to 375 and miscellaneous rigs were down two to three. By type, horizontal rigs were up ten to 1,137, vertical rigs were up one to 415 and directional rigs were up one to 223.  Among gas rigs, horizontal rigs were up five to 262, directional rigs were up four to 72 and vertical rigs were down one to 41.

Shell Abruptly Drops Louisiana GTL Plant

Royal Dutch Shell abruptly announced yesterday that it is ceasing plans to develop a $20 billion gas-to-liquids plant in Ascension Parish, Louisiana.  The move comes as something of a surprise given that the company made a splashy announcement that it had selected the Ascension site a couple of months ago.

Early reports suggest that Shell didn't feel the project was economically feasible because of the relationship between the price of natural gas and oil, which must be fairly significant (~16x) to justify the high cost of the GTL process.  Perhaps Shell sees the writing on the wall with the prospect of additional oil supply in the world market.  Oil production is up in the U.S., and with tensions thawing in Iran, the Persian Gulf might be a bigger player in the world market.  With consumption declining, or at least plateauing, the prospects for ever-higher oil prices are limited at this point.

Another thought:  perhaps this is part of a larger strategic effort by Shell to pull back from situations where it was a late comer and is playing catch-up rather than being a leader in the field.

Thursday, December 5, 2013

Holy Macaroni! Gas in Storage down 162 Bcf This Week

The EIA reported that working gas in storage was down 162 Bcf this week to 3.614 Tcf.  The weekly withdrawal was 161% greater than last year (-62 Bcf) and 295% above the five year average (-41 Bcf).  The current storage level is now 5.2% below last year (3.814 Tcf) and 2.8% below the five year average (3.718 Tcf).  This week marks the first time in 18 weeks that the current storage level has been below the five year average.


Temperatures last week averaged 36.7 degrees, which was 7.4 degrees cooler than last year and 5.7 degrees cooler than average.

Tuesday, December 3, 2013

New Louisiana Completions

  • SCC 31-17-14 H #1, Chesapeake Operating: 13.344 MMcf/day IP on 22/64 in. choke at 5,989 psi; Perfs: 11,597-15,850, length: 4,253 ft.; Shreveport Field, Caddo Parish, S31/T17/R14; res. A, serial #245420 
  • Johnson 10-14-15 H #2-ALT, Chesapeake Operating: 13.8 MMcf/day IP on 22/64 in. choke at 6,300 psi; Perfs: 11,935-16,341, length: 4,406 ft.; Bethany Longstreet Field, DeSoto Parish, S10/T14/R15; res. A, serial #243830 

Monday, December 2, 2013

Haynesville Shale Rig Count: -1 to 24

The Haynesville Shale rig count was down one last week to 24.  Louisiana was down one to 15 (Chesapeake), while Texas held at nine.



Wednesday, November 27, 2013

U.S. Rig Count: +2 to 1,763

The Baker Hughes U.S. rig count was up two this week to 1,763.  Oil rigs were up four 1,391, gas rigs were down two to 367 and miscellaneous rigs were unchanged at five.  By type, horizontal rigs were unchanged at 1,127, vertical rigs were down four to 414 and directional rigs were up six to 222.  Among gas rigs, horizontal rigs were up one to 257, directional rigs were down two to 68 and vertical rigs were down one to 42.

EIA: Storage Down 13 Bcf to 3.776 Tcf

The EIA's working gas in storage showed a 13 decrease in natural gas storage, bringing the current storage level to 3.776 Tcf.  The weekly withdrawal was 11 Bcf greater than last year (-2 Bcf) and pretty much in line with the five year average (-15 Bcf).  The current storage level is 2.6% below last year (3.876 Tcf) and 0.5% above the five year average (3.759 Tcf).


Monday, November 25, 2013

Haynesville Shale Rig Count Unchanged at 25

Last week's Haynesville Shale rig count stayed at 25 working rigs.  Louisiana was down one rig (Encana) to 16, while Texas was up one rig (EOG) to nine.


LNG Says, "Hellooooo Cleveland!"

Last week, Cleveland's city council decided to purchase 240 new LNG powered buses for its citywide transportation fleet.  (OK, so Spinal Tap has nothing to do with this, but how can you resist one of the top ten lines from cinematic history - especially with Bo Diddley giving instructions?).  The city's total fleet is 415 buses, and the new natgas vehicles will be phased in over four years.

In moving to natural gas, the city made several important observations:

  • Natural gas prices are less volatile than diesel (who could have imagined saying that five years ago?).
  • LNG buses are more efficient (5-6 MPG vs. 2 MPG for diesel).
  • Natural gas is cheaper than diesel (~$1.29/ gallon equivalent vs/ $3.05 for diesel).
  • Natural gas buses emit 30% less greenhouse gas and 85% less nitrous oxide than diesel.

At $472,000 a pop, the buses themselves cost 11% more than diesel buses, but the city expects to recoup that in savings within two years.

Friday, November 22, 2013

U.S. Rig Count: -1 to 1,761

The Baker Hughes U.S. rig count was down one rig this week to 1,761.  Oil rigs were up two to 1,387, gas rigs were down one to 369 and miscellaneous rigs were down two to five.  By type, horizontal rigs were up 13 to 1,127, vertical rigs were down 10 to 418 and directional rigs were down four to 216.  Among gas rigs, horizontal rigs were up one to 256, directional rigs were down two to 70 and vertical rigs were unchanged at 43.

A User's View of CNG Vehicles

I was recently contacted by a reader from NW Louisiana who bought a CNG converted vehicle (a 2010 Ford F150 supercrew 4x4) that had been a fleet vehicle for Encana.  He is keeping a blog of his experience of owning the vehicle (learningcng.blogspot.com).  He only recently launched the site (he bought the truck not long ago), but so far, it's got lots of information.  I hope that it answers many of the burning questions many of us have about owning a natural gas vehicle.  Check it out.

Thursday, November 21, 2013

New Texas Completions (ALL with Liquids)

10/31 - 11/20:
  • Carthage Gas Unit 17 #15, Valence Operaring: 1.011 MMcf/day IP, 10.0 Bbl/day liquids, 16/64" choke, 1,415 psi; Perfs: 10,101-11,205 (also 8,618-9,506 in Cotton Valley), length: 1,104 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: DIAL, C, A-184 
  • Carthage Gas Unit 17 #10, Valence Operaring: 1.005 MMcf/day IP, 8.3 Bbl/day liquids, 20/64" choke, 740 psi; Perfs: 10,181-11,217 (also 8,630-9,514 in Cotton Valley), length: 1,036 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: DIAL, C, A-184 

New Texas Permits

10/31 - 11/20:
  • CGU 18-15-76 #76HH, Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: SMITH, M, A-607 
  • CGU 18-5-15-77 #77HH, Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: SMITH, M, A-607 

New Louisiana Completions

  • Long 3 #2-ALT, EXCO Operating: 7.723 MMcf/day IP on 15/64 in. choke at 6,007 psi; Perfs: 12,393-16,656, length: 4,263 ft.; Caspiana Field, DeSoto Parish, S10/T14/R14; res. A, serial #246299 
  • Long 3 #3-ALT, EXCO Operating: 9.182 MMcf/day IP on 16/64 in. choke at 6,823 psi; Perfs: 12,283-16,547, length: 4,264 ft.; Caspiana Field, DeSoto Parish, S10/T14/R14; res. A, serial #246300

CEO Out at EXCO

EXCO Resources announced this morning that Douglas Miller resigned as Chairman, CEO and board member effective yesterday.  Another board member was named interim CEO and a search for his replacement will commence immediately.  Miller led the group that acquired EXCO through a leveraged buyout in 1997 and spearheaded a failed attempt to take EXCO private again a couple of years ago.

Given the lack of news coverage surrounding the news release, the resignation was sudden and most likely the result of internal strife.  Usually a failed LBO by the sitting leader doesn't end well for that person...but I'll update with more later as news comes out.

Gas in Storage Peaks This Week

The EIA reported that working gas in storage was down 45 Bcf to 3.789 Tcf.  This is the first withdrawal of the season and the timing was largely in line with past years (although the quantity was more substantial).  The weekly withdrawal was 25% greater than last year (-36 Bcf) and considerably higher than the 2 Bcf withdrawal of the five year average.  The current storage level is now 2.3% below last year (3.878 Tcf) and 0.4%. or 15 Bcf, above the five year average (3.774 Tcf).


Tuesday, November 19, 2013

Haynesville Shale Rig Count Unchanged at 25

For the third straight week, the Haynesville Shale rig count did not budge from 25.  But XTO Energy moved a rig from Texas to Louisiana, giving Texas eight working Haynesville rigs and Louisiana 17. Geographically, the new XTO rig is working in Bienville Parish, where there hasn't been a new well drilled since June 2012.  This also marks the first time since I started collecting rig data that there hasn't been a Haynesville rig working in Shelby or San Augustine Counties, TX.  The only TX Haynesville rigs are in Panola (seven) and Nacogdoches (one).


Monday, November 18, 2013

Freeport LNG Gets a Boost

Last week, the DOE increased the amount of natural gas that Freeport LNG can export from its facility in Quintana Island, TX from 1.4 to 1.8 Bcf/day.  The total amount of LNG export approved for export to countries without free trade agreements with the U.S. now stands at 6.8 Bcf/day.

Friday, November 15, 2013

U.S. Rig Count: +8 to 1,762

The Baker Hughes U.S. rig count was up eight rigs this week to 1,762.  Oil rigs were up two to 1,385, gas rigs were up five to 370 and miscellaneous rigs were up one to seven.  By type, horizontal rigs were unchanged at 1,114, vertical rigs were up 11 to 428 and directional rigs were down three to 220.  Among gas rigs, horizontal rigs were up two to 255, directional rigs held at 72 and vertical rigs were up three to 43.

Thursday, November 14, 2013

CSX to Test CNG Locomotives

CSX announced yesterday that it will commence a pilot program in 2014 in partnership with GE Transportation to test natural gas locomotives.  The locos will be powered by liquefied natural gas.  Other major railways testing LNG locomotives are CN and BNSF.

In the aforementioned press release, CSX's chief operating officer compares the potential for use of LNG to the conversion of trains from steam to diesel in the 1950's.  That's pretty strong language, especially before a pilot project has even started, but natural gas is attractive to railroads because it allows trains to travel longer distances before refueling and it is considerably cleaner than diesel.  Railroads have made considerable market share gains over the past decade and being able to promote an even more environmentally friendly transport method would certainly help the industry make greater gains.

EIA: Working Gas in Storage +20 Bcf to 3.834 Tcf

The EIA reported this week that working gas in storage was up 20 Bcf to 3.834 Tcf.  The weekly injection was 32 Bcf higher than last year (a withdrawal of 12 Bcf) but in line with the five year average (+19 Bcf). The current storage level is now 2.0% below last year (3.914 Tcf) and 1.5% above the five year average (3.776 Tcf).


Temperatures last week in the Lower 48 averaged 51.0 degrees, which was 2.1 degrees warmer than last year and 1.1 degrees warmer than average.

Tuesday, November 12, 2013

There's an App for That! (and a Web Site too)

In these pages, we always talk about how the adoption of CNG for passenger cars is a chicken and egg situation:  consumers won't be comfortable with CNG until there are more fueling stations, but businesses will not build new filling stations until there are more natural gas vehicles.  While there is no critical mass of CNG stations, there are more than a handful out there, and now there's an app to find them.


Released by the DOE, the app helps drivers find natural gas and electric fueling stations.  The DOE's web site also has a helpful station locator built into a Google map:

Monday, November 11, 2013

Haynesville Shale Rig Count: Unchanged at 25

Last week's Haynesville Shale rig count was unchanged at 25.  Louisiana held at 16 and Texas at nine.  But within Louisiana, Chesapeake was up one rig to three while Encana was down one rig also to three.  It is interesting to note that this is CHK's highest level of drilling activity since June 2012.



Friday, November 8, 2013

U.S. Rig Count: +12 to 1,754

The Baker Hughes U.S. rig count was up 12 this week to 1,754.  Oil rigs were up seven to 1,383, gas rigs were up five to 365 and miscellaneous rigs held at six.  By type, horizontal rigs were up ten to 1,114, vertical rigs were up nine to 417 and directional rigs were down seven to 223.  Among gas rigs, horizontal rigs were up one to 253, directional rigs were up one to 72 and vertical rigs were up three to 40.

Thursday, November 7, 2013

New Louisiana Completions

Another paltry week for Louisiana completions, with only two new entries.  One was from the paper and hasn't even been officially reported by DNR:
  • EDWL 11-14-15 H #2-ALT, Chesapeake Operating: 12.984 MMcf/day IP on 22/64 in. choke at 5,815 psi; Perfs: 12,070-16,445, length: 4,375 ft.; Caspiana Field, DeSoto Parish, S11/T14/R15; res. A, serial #243819 
  • Johnson 19-14-15 H #1, Chesapeake Operating: 15.048 MMcf/day IP on ?/64 in. choke at 6,148 psi; Perfs: 11,866-16,337, length: 4,471 ft.; Bethany Longstreet Field, DeSoto Parish, S19/T14/R15; res. A, serial #245518

EIA: Gas in Storage +35 Bcf to 3.814 Tcf

The EIA reported this week that working gas in storage was up 35 Bcf to 3.814 Tcf.  The weekly injection was 30% higher than last year (+27 Bcf) but in line with the five year average (+36 Bcf).  The current storage level stands at 2.9% below last year (3.926 Tcf) but 1.5% above the five year average (3.757 Tcf).


Tuesday, November 5, 2013

Encana Cuts (and Re-Re-Focuses on Liquids)

Encana announced its new operating strategy under CEO Doug Suttles (Gulf Coast residents might remember Mr. Suttles' tenure at BP during the 2010 Macondo oil spill).  Here is a link to the presentation.  There is lots of businesspeak mumbo jumbo in there, but the bottom line is that Encana will focus almost entirely on liquids plays, cut its dividend to try to maintain its investment grade rating, cut staff by 20% and spin off a Canadian asset.

Go figure:  another company shifting to liquids-rich plays.  Encana will consolidate its reduced U.S. operations to Denver, which is closer to its new favored plays in the Rockies, the DJ Basin in Colorado and the San Juan in New Mexico, and shutter its Dallas office, which was responsible for  the Haynesville Shale, among other things.  Also "in" is the Tuscaloosa Marine Shale.  Here's what they have to say about that play:

Monday, November 4, 2013

Haynesville Shale Rig Count: Unchanged at 25

The Haynesville Shale rig count was unchanged last week at 25.  Louisiana held at 16 and Texas was unchanged at nine.


Friday, November 1, 2013

U.S. Rig Count: +4 to 1,742 (Gas Rigs Down 16)

The Baker Hughes U.S. rig count was up four rigs this week to 1,742.  Oil rigs were up 19 to 1,376, gas rigs were down 16 to 360 and miscellaneous rigs were up one to six.  By type, horizontal rigs were up six to 1,104, vertical rigs were up 17 to 408 and directional rigs were down 19 to 230.  Among gas rigs, horizontal rigs were down 10 to 252, directional rigs were down four to 71 and vertical rigs were down two to 37.

Thursday, October 31, 2013

New Texas Permits

Amazingly, by my count, there have only been two Haynesville Shale permits filed in Texas in the month of October:
  • Tiber #1H, XTO Energy; Carthage Field (Haynesville Shale), Shelby Co. Co., Survey: McREARA, C, A-457 
  • CGU 9 SA #71HH, Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: SMITH, M, A-607

New Texas Completions

10/1/13 -10/30/13:
  • CGU 11 #53HH, Anadarko E&P: 6.617 MMcf/day IP, 153.0 Bbl/day liquids, 20/64" choke, 5,115 psi; Perfs: 10,935-17,487, length: 6,552 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: DUNCAN, S, A-158 
  • CGU 24 #53HH, Anadarko E&P: 1.375 MMcf/day IP, 50.0 Bbl/day liquids, ?/64" choke, 5,215 psi; Perfs: 11,052-16,007, length: 4,955 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: BLANKENSHIP, D, A-48 

Good Background on CNG in U.S.

The New York Times earlier this week published a good article about the adoption of CNG for passenger vehicles in the U.S. that makes a few points that I have not heard emphasized yet.  The article doesn't have any particular scoop, but it gives a good "state of the union" of where we stand on natural gas and passenger cars.

I found most interesting the discussion of the engineering challenges of optimizing natural gas in a gasoline/natgas dual fuel engine, which most mainstream carmakers are starting to offer as a way of dipping their toes in CNG.  Natural gas is inherently disadvantaged in these types of engines because natgas has a lower energy density than gasoline.  The trade-off, however, is that natural gas has a much higher octane rating of 130, compared to low 90s and below for most conventional gasoline.  The higher octane allows car engines to run with higher cylinder pressure, which provides greater power and offsets the energy density issue.  Unfortunately, none of these dual fuel engines are optimized for natural gas and therefore run less efficiently on natgas than a dedicated natgas engine.  Ultimately, a cost effective and efficient home fueling solution will be the single greatest impetus for automakers to bring dedicated CNG models to the U.S.

EIA: Gas in Storage +38 Bcf to 3.779 Tcf

The weekly EIA weekly storage report showed a 38 Bcf net injection, bringing the total working gas in storage up to 3.779 Tcf.  The weekly injection was 42% below last year (+66 Bcf) and 33% below the five year average (+57 Bcf).  The current storage level is now 3.1% below last year (3.899 Tcf) but 1.6% above the five year average (3.721 Tcf).


I believe this marks the first year in the past four or five where we didn't set or at least flirt with a new maximum storage record.  Feels nice to be able to breathe more comfortably this time of year.

Tuesday, October 29, 2013

New Louisiana Completion

There haven't been many announced Haynesville completions in Louisiana in recent months.  Not sure what's going on...

  •  Olympia Min 3 H #1, Encana Corp.: 20.634 MMcf/day IP on 24/64 in. choke at 7,864 psi; Perfs: 13,025-17,798, length: 4,773 ft.; Bayou San Miguel Field, Sabine Parish, S3/T8/R12; res. Jur A, serial #246474

Haynesville Shale Rig Count: +1 to 25

This week's Haynesville Shale rig count was up one to 25.  Louisiana was up one (Petrohawk) to 16, while Texas held at nine.  I neglected to mention last week that it was the first week since I started publishing rig count data in the Haynesville Shale in January 2010 that San Augustine Co. Texas was without a Haynesville rig.  At one point in early 2010, there were 22 Haynesville rigs plying their trade there. My, how things have changed.


Friday, October 25, 2013

U.S. Rig Count: -1 to 1,738

The Baker Hughes U.S. rig count showed a one rig decline to 1,738.  Oil rigs were down four to 1,357, gas rigs were up four to 376 and miscellaneous rigs were down one to five.  By type, horizontal rigs were down one to 1,098, vertical rigs were down 10 to 391 and directional rigs were up ten to 249.  Among gas rigs, horizontal rigs were up two to 262, directional rigs were up six to 75 and vertical rigs were down four to 39.

Thursday, October 24, 2013

EIA Storage: +87 Bcf to 3.741 Tcf

Working gas in storage was up 87 Bcf this week to 3.741 Tcf.  The weekly injection was 36% higher than last year (+64 Bcf) and 30% above the five year average (+67 Bcf).  The current storage level is now 2.4% below last year (3.833 Tcf) but 2.1% above the five year average (3.664 Tcf).


With the current week's data, the current storage level has been higher than the five year average since the first week of August.

Last Week's Storage Report: +77 Bcf to 3.654 Tcf

The EIA released its October 11 storage report earlier this week (and will release this week's in a few minutes).  Working gas in storage was up 77 Bcf to 3.654 Tcf.  The weekly injection was 43% greater than last year (+54 Bcf) and in line with the five year average (+75 Bcf).  The (then) current storage level was 3.1% below last year (3.715 Tcf) but 1.6% above the five year average (3.597 Tcf). I'll post updated charts with the new storage report later this morning.

Monday, October 21, 2013

Haynesville Shale Rig Count: -2 to 24

The Haynesville Shale rig count was down two last week to 24 working rigs.  Louisiana was down one (Petrohawk) to 15, and Texas was also down one (Anadarko) to nine.


Friday, October 18, 2013

U.S. Rig Count: -4 to 1,739

The Baker Hughes U.S. rig count was down four this week to 1,739.  Oil rigs were down six to 1,361, gas rigs were up three to 372 and miscellaneous rigs were down one to six.  By type, horizontal rigs were down seven to 1,099, vertical rigs were down eight to 401 and directional rigs were up 11 to 239.  Among gas rigs, horizontal rigs were up six to 260, directional rigs were unchanged and vertical rigs were down three to 43.

Thursday, October 17, 2013

Weekly Storage Report Release TBD

The hostages have been released from Dysfunction Junction and are slowly returning to work while the terrorists are plotting ways to ruin Christmas.  The EIA has not yet announced when it will publish the next natural gas storage report, but it certainly doesn't look like this morning.  I'll update my storage numbers as soon as the report is released.

[***update 10/21: the EIA announced that there will be no "make up" for last week's storage report and that they will resume the normal schedule this Thursday.***]

Wednesday, October 16, 2013

Calling all Gas Nerds: Good Haynesville Model

Last month, RBN Energy published a downloadable financial model for analyzing a Haynesville Shale well.  It's a basic discounted cash flow model that provides easy inputs and good basic output for those who want to know more about the economics of a shale gas well.  Take a look at this article, which provides you the link to the RBN model.  You do have to register at RBN, but it's free (although not immediate).

GM to Introduce Natural Gas/Gasoline Impala

On this 40th anniversary of the 1973 oil embargo, General Motors will introduce a new bi-fuel version of its Chevrolet Impala that will run on natural gas and gasoline.  The 2015 Impala will be released in the summer of 2014 and will have the natural gas equivalent capacity of eight gallons that will provide a range of about 150 miles.  The additional gasoline tank will give the vehicle a total range of 500 miles.  The car will switch seamlessly from CNG to gas at the appropriate time, much like the Chevy Volt.

GM's CEO Dan Akerson says the company has invested additional resources in natural gas power trains.  In my mind, that's a "greener" approach than plug-in electric cars since a majority of the country's power is still generated by coal.  At least OPEC doesn't sell coal.

The Impala will be available to the general public, but GM expects most purchases to be from fleet buyers.  The company's has not set its expectations too high, as it thinks it will only sell 750 to 1,000 cars in the first model year.

Tuesday, October 15, 2013

Haynesville Shale Rig Count: +2 to 26

Last week's Haynesville Shale rig count was up two to 26.  Louisiana was up one (Chesapeake) to 16, while Texas was also up one (Anadarko) to 10.

Friday, October 11, 2013

EIA Now Closed Because of Shutdown

I got an email late this afternoon that the EIA has finally shut down because of the government shutdown.  For some reason, the EIA had some additional appropriation that allowed it to operate for ten days after most everything else closed.  I read a book to my six year old recently that explained that a roach can live for weeks after its head is cut off because its neurological functions are distributed throughout its body instead of residing in a single brain.  Maybe that's what's going on with EIA (although I'm certainly not comparing the agency to a roach).

But the good news is that the members only Congressional gymnasium is still open, albeit without towel service.

U.S. Rig Count: -13 to 1,743

The U.S. rig count was down 13 rigs this week to 1,743.  Oil rigs were down five to 1,367, gas rigs were down nine to 369 and miscellaneous rigs were up one to seven.  By type, horizontal rigs were up seven to 1,106, vertical rigs were down seven to 409 and directional rigs were down 13 to 228.  Among gas rigs, horizontal rigs were down seven to 254, directional rigs were down two to 69 and vertical rigs were unchanged at 46.

Thursday, October 10, 2013

This is the Future

In these pages, we have talked some about distributed power generation, which I believe is the future of power generation.  I don't think we will ever get rid of big power plants, but I think more and more generation will be decentralized.

One of our nation's greatest vulnerabilities is the power grid. Anyone who has lived through a hurricane knows this first hand.  When thinking of distributed generation, many people think of solar panels, but in recent years, fuel cell technology has advanced significantly.  There are many brilliant people working for well funded groups (business and government entities) out there continuing to push boundaries in power generation.  We see time and time again that where there is an identifiable problem with a potentially lucrative outcome, American (and other nationality) innovators will come out of the woodwork to develop new technology.

Case in point is Redox Power Systems, which is developing its Cube solid oxide fuel cell based on technology developed at the University of Maryland.  The company plans to bring the Cube to market in 2014.  (Read more about it and DG here - look for slide show under company overview.)

EIA: Storage +90 Bcf to 3.577 Tcf

Apparently the part of the EIA in charge of collecting and disseminating natural gas storage data, like the Congressional gymnasium, is considered an essential government service and is not shut down with the rest of government during all this insanity (we don't want our elected officials to miss their CrossFit training).

As a result, I can report that working gas in storage is up 90 Bcf this week to 3.577 Tcf.  The weekly injection was 23% higher than last year (+73 Bcf) and 7% above the five year average (+84 Bcf).  The current storage level is  now 3.7% below last year (3.715 Tcf) but 1.6% above the five year average (3.522 Tcf).


Wednesday, October 9, 2013

A Month's Worth of Texas Completions

9/4/13 - 10/9/13:
  • D'Asto #4H, Sabine Oil & Gas: 4.9 MMcf/day IP, 18/64" choke, 6,563 psi; Perfs: 11,287-15,092, length: 3,805 ft.; Carthage Field (Haynesville Shale), Angelina Co., Survey: EARLE, D, A-235 
  • D'Asto #5H, Sabine Oil & Gas: 5.062 MMcf/day IP, 18/64" choke, 6,679 psi; Perfs: 11,401-15,380, length: 3,979 ft.; Carthage Field (Haynesville Shale), Angelina Co., Survey: EARLE, D, A-235 

Tuesday, October 8, 2013

New Louisiana Completions

  • Gorman 23-15-11 H #1, Chesapeake Operating: 14.832 MMcf/day IP on 22/64 in. choke at 6,222 psi; Perfs: 11,898-16,455, length: 4,557 ft.; Swan Lake Field, Bossier Parish, S23/T15/R11; res. A, serial #244935 
  • Atkinson 15-14-15 H #1-ALT, Chesapeake Operating: 14.136 MMcf/day IP on 22/64 in. choke at 6,176 psi; Perfs: 12,441-16,491, length: 4,050 ft.; Bethany Longstreet Field, DeSoto Parish, S15/T14/R15; res. A, serial #243705 

Monday, October 7, 2013

Haynesville Shale Rig Count: -1 to 24

The Haynesville Shale rig count was down one last week to 24.  Louisiana was down one (Chesapeake) to 15, while Texas held at nine.

Friday, October 4, 2013

U.S. Rig Count: +12 to 1,756

The Baker Hughes U.S. rig count was up 12 this week to 1,756.  Oil rigs were up ten to 1,372, gas rigs were up two to 378 and miscellaneous rigs were unchanged at six.  By type, horizontal rigs were up 14 to 1,099, vertical rigs were down one to 416 and vertical rigs were down one to 241.  Among gas rigs, horizontal rigs were up five to 261, directional rigs were down two to 71 and vertical rigs were down one to 46.

Thursday, October 3, 2013

EIA: Storage +101 Bcf to 3.487 Tcf

The EIA reported that working gas in storage was up 101 Bcf this week to 3.487 Tcf.  I guess the EIA autobot must be working because I imagine the EIA staff is furloughed now that "lemmings with suicide vests" have taken over the Capitol.  The weekly injection was 31% higher than last year (+77 Bcf) and 23% above the five year average (+82 Bcf).  The current storage level is 4.3% below last year (3.642 Tcf) but 1.4% above the five year average (3.438 Tcf).


Tuesday, October 1, 2013

New Texas Permits

9/4/13 - 9/30/13:

  • J.W. Wiltcher Gas Unit #4, Valence Operating; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: HOOPER, WM, A-323 
  • CGU 10 SA #74HH, Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: DUNCAN, S, A-158 

Haynesville Shale Rig Count: +2 to 25

The Haynesville Shale rig count was up by two last week to 25.  Louisiana was up two (both Petrohawk) to 16, while Texas held at nine.


Shell Selling Eagle Ford Shale Stake; What Happens in the Haynesville?

News outlets were abuzz yesterday with news that Royal Dutch Shell is selling its interest in the Eagle Ford Shale, which represents 106,000 net acres in Dimmit, LaSalle and Webb counties.  I'm not terribly familiar with Shell's acreage in the play, but the three counties in question are in the southwest portion of the play and cover the gas, wet gas and oil windows.  Shell is also unloading its 600,000 acre position in the Mississippi Lime in Kansas.

Since we are Haynesville-centric on this site, the question is whether or not Shell will unload its Haynesville assets.  Personally, I doubt it.

Friday, September 27, 2013

U.S. Rig Count: -17 to 1,744

The Baker Hughes U.S. rig count was down 17 rigs this week to 1,744.  Oil rigs were down seven to 1,362, gas rigs were down ten to 376 and miscellaneous rig were unchanged.  By type, horizontal rigs were down six to 1,085, vertical rigs were down four to 417 and directional rigs were down seven to 242.  Among gas rigs, horizontal rigs were down four to 256, directional rigs were down two to 73 and vertical rigs were down four to 47.

Thursday, September 26, 2013

EIA: Storage + 87 Bcf to 3.386 Tcf

The EIA announced this week that working gas in storage was up 87 Bcf to 3.386 Tcf.  The weekly injection was 10% above last year (+79 Bcf) and 16% above the five year average (+75 Bcf). The current storage level is now 5.0% below last year (3.565 Tcf) but 0.9% above the five year average (3.356 Tcf).


Tuesday, September 24, 2013

Shell Picks Ascension Parish for GTL Plant

Hot off the press: Shell has picked a site in Ascension Parish, LA for the site of a natural gas to liquids plant. No final investment decision at this time, but a location near Sorrento seems to be a done deal.  The plant will cost around $12.5 billion and create 740 new permanent jobs.  Like the proposed Sasol project, the Shell plant will be a massive undertaking, expected to create 10,000 construction jobs.

While Gov. Jindal will take full credit, make sure to give thanks to the Haynesville Shale and all of the brave natgas independents that risked their companies to prove the play, which in the end only brought them pain and misery in the form of low commodity prices and oversupply.

Monday, September 23, 2013

Haynesville Shale Rig Count: -2 to 23

The Haynesville Shale rig count was down again last week, this time down two to 23.  Louisiana was down one (Petrohawk/BHP Billiton) to 14, while Texas was down one (XTO) to nine.


Friday, September 20, 2013

U.S. Rig Count: -7 to 1,761 (Gas Rigs Down Big)

The Baker Hughes U.S. rig count was down seven this week to 1,761.  Oil rigs were up eight to 1,369, gas rigs were down 15 to 386 and miscellaneous rigs were unchanged at six.  By type, horizontal rigs were up 15 to 1,091, vertical rigs were down 23 to 421 and directional rigs were up one to 249.  Among gas rigs, horizontal rigs were down eight to 260, directional rigs were up one to 75 and vertical rigs were down eight to 51.