Thursday, January 31, 2013

New Texas Permits

1/17/13 - 1/31/13 (note Goodrich Petroleum permit in Angelina Co., its first new Haynesville permit since September 2011):
  • Bison (SL) DU #1HB, XTO Energy; Carthage Field (Haynesville Shale), San Augustine Co. Co., Survey: WALKER, I, A-481 
  • CGU 27 #51HH, Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: DILLARD, H, A-166 

Recent Texas Completions

1/17/13 - 1/29/13:
  • New Horizons #P1H, XTO Energy: 6.102 MMcf/day IP, 15/64" choke, 4,741 psi; Perfs: 11,229-16,681, length: 5,452 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: KNOLL, P , A-375 
  • CGU 18 #55HH, Anadarko E&P: 6.643 MMcf/day IP, 20/64" choke, 5,365 psi; Perfs: 10,902-16,815, length: 5,913 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: SMITH, M, A-607 
  • CGU 9 #55HH, Anadarko E&P: 5.401 MMcf/day IP, 20/64" choke, 4,165 psi; Perfs: 10,980-16,249, length: 5,269 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: SMITH, M, A-607

Recent Louisiana Completions

  • NAC Royalty 33 H #1, Petrohawk Operating: 6.87 MMcf/day IP on 14/64 in. choke at ? psi; Perfs: 13,416-17,994, length: 4,578 ft.; Red River-Bull Bayou Field, Red River Parish, S28/T12/R10; res. B, serial #243685 
  • NAC Royalty 28 H #1, Petrohawk Operating: 7.356 MMcf/day IP on 14/64 in. choke at 8,300 psi; Perfs: 13,355-17,438, length: 4,083 ft.; Red River-Bull Bayou Field, Red River Parish, S28/T12/R10; res. B, serial #243731 

EIA: Storage -194 Bcf to 2.802 Tcf

The EIA reported a 194 Bcf net withdrawal of gas in storage this week, bringing the total working gas in storage to 2.802 Tcf.  The withdrawal was 30% greater than last year (-149 Bcf) and 9% higher than the five year average (-178 Bcf).  The current storage level is now 6.7% below last year (3.004 Tcf) but 12.2% above the five year average (2.498 Tcf).


Temperatures last week averaged 33.0 degrees, which was 2.7 degrees cooler than last year and 0.1 degree cooler than average.

Wednesday, January 30, 2013

Devon to Sell its Tuscaloosa Acreage

Devon Energy is selling its acreage in the Tuscaloosa Marine Shale, likely as part of a strategic shift.  The company owns around 208,000 net acres (after Sinopec JV) in the play but has drilled only eight wells.  It is also selling its nearly 250,000 acres in the Utica Shale.

Tuesday, January 29, 2013

Aubrey McClendon "Retiring" from Chesapeake - Wow!

Chesapeake Energy announced late this afternoon that CEO and co-founder Aubrey McClendon will retire April 1, 2013 (April Fools Day???).  The company was quick to point out that internal investigations of allegations of Aubrey's conflicts of interest have "found no improper conduct."

I guess the ball has been rolling towards this inevitable conclusion since last spring after the revelation of his many "alleged" conflicts of interest involving his personal ownership interest in all Chesapeake wells, much of which has been quietly funded of late by investors brought in to help keep Chesapeake afloat over the past several years.  This crack in the armor was just the opening that activist shareholders like Carl Icahn were waiting for to exert control over the company.  Last year McClendon lost the job of chairman and agreed to cease the "Founder Well Participation Program."

But I have to imagine McClendon put up a fight to keep the CEO job.  Chesapeake is his baby and the company bears his stamp in all aspects, from the aggressive land acquisition strategy to the generous amenities that make CHK one of the Fortune 100 Best Companies to Work For.

But McClendon lost much of his stock in the company in a margin call several years ago, so he isn't sitting pretty on a a billion dollar nest egg.  Nobody will shed a tear for poor Aubrey, as there's a golden parachute waiting for him, but I'm sure this isn't just a job to McClendon.

The company says that it plans to maintain its current capital plan (which downplays natural gas), but we will all be watching to see if there is a change in strategy when a new CEO is appointed later this year.  We will also be watching for Act Two from Aubrey once his non-compete burns off after six months, although somehow I doubt it will involve the Haynesville Shale.

Perhaps the biggest question with the departure of Aubrey from the scene:  who will the anti-frackers hate most now?

Why Anadarko Keeps Drilling

It's not really a mystery.  Over the past half year, Anadarko has maintained the largest Haynesville-targeted rig count while most other producers have cut back significantly.  The secret, as many people know, is that the company is able to target liquids with these wells.  I'm a bit delinquent in posting the slide below (from a December presentation), but it neatly summarizes the attraction of these Haynesville wells:  36% oil and liquids and a type curve that is nearly flat for six months.  Even at a gas price of $3.25/Mcf, the wells are estimated to produce a 95% pre-tax return.


Look for the Anadarko rig count to stay about the same for the rest of the year.

Saturday, January 26, 2013

Haynesville Shale Rig Count: Unchanged at 24

For the fourth straight week, the Haynesville Shale rig count held at 24.  The count was up one in Louisiana to 13 (Encana) and down one in Texas to 11 (Valence).

Friday, January 25, 2013

U.S. Rig Count: +4 to 1,753

Baker Hughes reported that the  U.S. rig count was up four this week to 1,753.  Oil rigs were down one to 1,315, gas rigs were up five to 434 and miscellaneous rigs were unchanged at four.  By type, horizontal rigs were unchanged at 1,127, vertical rigs were up three to 445 and directional rigs were up one to 181.

Shell Signs Big Agreement for Ukraine Shale Gas

Shell is going to take a crack at drilling for shale gas in Ukraine via a 50 year production sharing agreement that likely will lead to a $10 billion investment in the country's Yuzivska field.  Shell estimates that it can get annual production of somewhere between 7 and 20 billion cubic meters of gas by 2018.

Success for Shell in Ukraine is far from certain, as no other country has come close to replicating North America's success in producing shale gas.  This is sort of a "take three" on European shale drilling after disappointing results in Poland and the ongoing battles in Great Britain after suspicious seismic activity near a well in Blackpool.  Ukraine has the third largest estimated shale gas reserves (42 Tcf) and a glaring need for less expensive gas than Russia supplies.  Ukraine has also decided to partner with Chevron to develop the Olesska field and ExxonMobil to explore offshore in the Black Sea.

It's interesting to watch the business cycle of shale gas churn.  Creative, aggressive independent firms took the lead to quickly develop technologies and techniques through trial and error, only to see better capitalized majors assume the reins, largely through corporate acquisitions.  This is a natural part of the energy industry food chain, but it has happened remarkably fast.  Now energy majors are peddling shale extraction techniques in the major shale markets of Europe and Asia.  If we had depended on majors to develop shale gas technologies, we'd probably be in the equivalent of the shale stone age.

Long-term, the biggest natural gas-related export from the U.S. might be shale technology and expertise rather than LNG, and it's because of the pluck of the independents, not the girth of the majors.

Chesapeake Signs Creative Supply Agreement with Methanex

Chesapeake Energy announced yesterday that it has entered into a ten year natural gas supply agreement with Methanex Corporation, which is relocating one of its methanol plants from Cabo Negro, Chile to Geismar, LA.  The plant is expected to be operational by the end of 2014 and should source gas from the Haynesville Shale.

It wouldn't be a Chesapeake deal if there weren't some kind of heightened risk/reward factor involved, hence the gas supply agreement will be priced based on the market price of methanol rather than the cost of natural gas.  This allows Chesapeake to see a bigger upside if methanol prices are high, and it gives Methanex a firm handle on its largest operating cost for the next ten years, thus reducing volatility in costs and profits.

As we mentioned back in November 2012 with the Encana/Nucor deal, look for innovative market solutions like this for suppliers to get natural gas to market.

Thursday, January 24, 2013

EIA: Storage -172 Bcf to 2.996 Tcf

The EIA natural gas storage report showed a 172 Bcf decrease this week, bringing the total working gas in storage to 2.996 Tcf.  The net withdrawal was in line with last year (-162 Bcf) and the five year average (-176 Bcf).  The current storage level is now 5.0% below last year (3.153 Tcf) and 12.0% above the five year average (2.676 Tcf).


Temperatures in the Lower 48 last week averaged 37.9 degrees, 1.6 degrees warmer than last year and 4.9 degrees warmer than average.

Wednesday, January 23, 2013

Don't Forget the "Lucky Few"

As the War of LNG rages on between well-funded, vaguely named industry lobbying groups over whether the U.S. should allow natural gas exports, big companies are choosing sides and the PR campaigns are picking up steam.  Comparing the benefits of export of natural gas versus prohibiting its export to keep natural gas prices low to benefit manufacturers is very complicated, and it is nearly impossible to quantify future outcomes (unless of course you have a vested interest in one side of the debate or the other).

But while corporate titans battle over whose businesses will be more profitable, let's not forget about those whom I will call the "Lucky Few."  These are the millions of Americans that own mineral rights in the U.S.  Private mineral ownership is a concept that's almost entirely unique to the United States and it has been a major reason that the U.S. has developed an energy industry that leads the world in innovation and soon might lead it in production.


But nowhere in the conversation about exporting natural gas and the impact one way or another to its commodity price have I heard any discussion of the impacts to mineral owners.  If LNG export leads to higher natural gas prices, even if only marginally higher, royalties increase and more money ends up in the pockets of average people.

Monday, January 21, 2013

Haynesville Shale Rig Count Unchanged at 24

The Haynesville Shale rig count was unchanged this week at 24 with both Louisiana and Texas holding at 12.  Encana was back down to zero rigs and J-W Operating was up to two.

Friday, January 18, 2013

U.S. Rig Count: -12 to 1,749

The Baker Hughes rig count was down 12 to 1,749. Oil rigs were down seven to 1,316, gas rigs were down five to 429 and miscellaneous rigs were unchanged at four.  By type, horizontal rigs were up eight to 1,127, vertical rigs were down 18 to 442 and directional rigs were down two to 180.  Among gas rigs, horizontal rigs were up two to 318, directional rigs were down eight to 54 and vertical rigs were up one to 57.

Thursday, January 17, 2013

Recent Louisiana Completions

  • PLD Et Al. 21-12-12 H #1, Chesapeake Operating: 12.681 MMcf/day IP on 22/64 in. choke at 6,840 psi; Perfs: 12,152-16,342, length: 4,190 ft.; Red River-Bull Bayou Field, DeSoto Parish, S28/T12/R12; res. A, serial #244188 
  • Sustainable Fst 26 #5-ALT , SWEPI, LP: 15.023 MMcf/day IP on 21/64 in. choke at 8,058 psi; Perfs: 13,056-17,391, length: 4,335 ft.; Bracky Branch Field, Red River Parish, S23/T14/R10; res. A, serial #243427 

New Texas Completions

1/4/13 - 1/17/13:
  • CGU 14 #52HH, Anadarko E&P: 6.188 MMcf/day IP, 20/64" choke, 5,465 psi; Perfs: 10,941-16,415, length: 5,474 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: DUNCAN, S, A-158 
  • Seminoles DU #1H, XTO Energy: 8.4 MMcf/day IP, 12/64" choke, 7,462 psi; Perfs: 12,755-20,063, length: 7,308 ft.; Carthage Field (Haynesville Shale), Shelby Co., Survey: WIGGINS, H L, A-763

New Texas Permits

1/4/13 - 1/17/13:
  • Terriers DU #1H, XTO Energy; Carthage Field (Haynesville Shale), San Augustine Co. Co., Survey: COLLINS, W, A-467 
  • CGU 13 #51HH, Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: DUNCAN, S, A-158 
  • CGU 13 #52HH, Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: DUNCAN, S, A-158

EIA: Storage -148 Bcf to 3.168 Tcf

The EIA reported that gas in storage was down 148 Bcf this week, bringing the level of working gas in storage down to 3.168 Tcf. The weekly withdrawal was 66% larger than last year (-89 Bcf) and in line with the five year average (-144 Bcf).  The current storage level is now 4.4% below last year (3.315 Tcf) - hardly a cause for celebration - and 11.1% above the five year average (2.852 Tcf).


Temperatures last week averaged 37.1 degrees, which was 4.4 degrees cooler than last year and 4.0 degrees warmer than average.

Wednesday, January 16, 2013

Natgas-to-Gasoline a Better Mousetrap for Consumer Auto Market

And while I'm at it, yet another benefit to the proposed natural gas-to-liquids plants by G2X Energy and Sasol is that GTL is a more effective way for natural gas to penetrate the market for consumer automotive fuel.  While natural gas engines are penetrating the markets for trucking, buses, garbage trucks, fleet vehicles and the like, consumer NGVs are a long, long way off.

The commercial market offers better economic prospects, but the consumer market seems oh so tantalizing for so many.  But the likelihood of Mr. and Mrs. America converting their vehicles to run on natural gas or buying a natgas vehicle is slim.  While there will be some market penetration, there is too much of a change in mindset and infrastructure required to make any real penetration into consumer CNG.

But by converting natural gas into liquid gasoline, the fuel would integrate nicely into the consumer vehicle market without any need to add fueling infrastructure or change vehicles.  GTL doesn't offer the same economics to the end user and is probably not quite as clean, but from the perspective of natural gas producers, it is a shorter hill to climb to get natural gas into my car.

A Win-Win Way to Export Natural Gas

If the proposed G2X Energy gas-to-methanol-to-gasoline plant is built in Lake Charles, it would be a sneaky way to export natural gas without raising a the ire of folks like Dow Chemical that are raising a ruckus protesting the prospect of LNG exports.

The proposed G2X location on a canal is intended to facilitate the transport of the end product by boat or pipeline. Given the restrictions of the Jones Act, presumably all gasoline (and propane) that goes by water will be exported to other countries.  This is a win-win workaround of the natural gas export problem because G2X would be exporting a value-added product created from natural gas.  The manufacturing jobs stay in the U.S. and the company exports a higher value product than the raw material of natural gas.  Other than environmentalists, who could object to that?

European steel manufacturers Voestalpine and ThyssenKrupp are pursuing a somewhat similar strategy.  Because of high energy costs, steel production in Europe is facing deep competitive pressures.  As a solution, Voestalpine is scouting sites in the U.S. and Canada to build a plant to take advantage of cheap North American natural gas to convert iron ore into either iron sponge or iron briquettes that would exported to Europe to be used as an input in the company's European steel plants.  Effectively, U.S. raw materials of gas and iron ore would be converted into a manufactured product for export (although the gas is not directly exported).  Longer term, Voestalpine indicated that it might build mini-mills in North America to make steel from iron briquettes or scrap materials.

Another Gas-to-Liquids Plant Targeting Louisiana

Louisiana's bumper crop of natural gas has attracted another end user.  Houston-based G2X Energy announced that it will lease 200 acres on the Industrial Canal at the Port of Lake Charles, LA to build a $1.3 billion natural gas to methanol plant.  G2X will convert approximately 90% of the methanol to gasoline and the remainder to propane.  G2X also announced today that it has licensed Exxon's methanol to gasoline technology.

The G2X press release did not provide any specifics in terms of estimated quantities of natural gas inputs or gasoline outputs.  Looking at construction costs, while $1.3 billion sounds like a lot of dough, it is less than 10% of the construction budget of the neighboring proposed Sasol GTL plant in Westlake, LA, which has passed its feasibility analysis has a construction budget of $16 to $21 billion.

But I'm not complaining.  It is a good thing to expand the market for natural gas into new products and new end users. And it's good for the Haynesville Shale to have another big customer just a short pipeline run away.

The next step in the process is for G2X to conduct a feasibility analysis and make a "go/no go" investment decision by the end of 2013.  If the project is a go, construction would begin in 2014 with estimated completion in early 2017.

Tuesday, January 15, 2013

Natural Gas Utility Market Share Down in October

While utilities are saving natural gas, they are a fickle lot.  October 2012 saw Henry Hub spot natural gas prices increase by approximately 48 cents, or 17%, from September.  As a result, the market share of natural gas among utility users dropped from 32.3% in September to 29.5% in October.  That's still better than the 25.5% market share in October 2011, but it sure is a step down the chart:


Year-to-date 2012, gas has a 31.2% market share of net electricity generation, compared to 24.7% in 2011, so it's not all bad news.


Utilities Save Natural Gas (Again...)

Utilities continue to play a major role in keeping 2012 natural gas consumption consistently above average, nearly matching production gains.  Year-to-date, utilities have accounted for 7.8 Tcf, or 41.8%, of total natural gas consumption in 2012, compared to 6.4 Tcf, or 35.5%, in the same ten month period in 2011 and 5.5 Tcf, or 32.0%, in the same period in the past ten years. Back in 2002, only 26.7% of natural gas consumed in the U.S. went to utilities.


Natural gas consumption is up 5.6% YTD in 2012 compared to 2011, and it is utilities (+24.2%) and industrial uses (+5.8%) that are more than picking up the slack for the depressed residential (-16.2%) and commercial (-10.9%) sectors.


Sunday, January 13, 2013

Haynesville Shale Rig Count: Unchanged at 24

The Haynesville Shale rig count was unchanged this week at 24.  Louisiana was down one to 12 while Texas was up one to 12.  This week marks the first time that Bossier Parish has hosted a rig since the first week of August 2012.



Friday, January 11, 2013

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

The Baker Hughes U.S. rig count was down one this week to 1,761.  Oil rigs were up five to 1,323, gas rigs were down four to 434 and miscellaneous rigs were down one to four.  By type, horizontal rigs were up seven to 1,119, vertical rigs were down 20 to 460 and directional rigs were up 12 to 182.  Among gas rigs, horizontal rigs were down four to 316, directional rigs were unchanged at 62 and vertical rigs were down one to 56.

Gas Users Form Alliance Against LNG Export

A number of domestic big natural gas customers have formed a new lobbying alliance called America's Energy Advantage to convince the public and federal decision makers to put the brakes on the export of liquefied natural gas (LNG).  The campaign, complete with slick web site, promises to "educate policy makers" on their argument against the export of natural gas.

Yay!  Another milquetoast-named lobbying group channeling buckets of money into PR and lobbying, just what I was hoping for in the new year.

The promised lobbying battle pits chemical manufacturers against oil and gas producers, which promises to be a battle of heavyweights.  I'll be interested in seeing the specifics of their arguments, but I can smell the hypocrisy from here.  Sounds like a bunch of big businesses asking the government to deny LNG export so the chemical manufacturers can keep their costs low and profitability high, all under the guise of job creation.  But in doing so they are asking the government to override the free market economy that makes our country great.

Ultimately, I think the LNG export market will be self-limiting, as rising prices will lead to increased production and reduced demand from utilities, thus undercutting some of the advantages of U.S. LNG.  Also, investors will have only so much appetite for the multi-billion dollar price tags for these facilities, so even if all of the applications are approved, only a handful will be constructed.

Two Recent Louisiana Completions

  • Colbert Lands 21 H #2-ALT, Encana Corp.: 18.144 MMcf/day IP on 23/64 in. choke at 6,913 psi; Perfs: 12,521-17,074, length: 4,553 ft.; Red River-Bull Bayou Field, Red River Parish, S16/T14/R11; res. D, serial #243741 
  • Evans 37+38-8-13 H #1, Chesapeake Operating: 17.064 MMcf/day IP on 22/64 in. choke at 7,535 psi; Perfs: 12,160-15,903, length: 3,743 ft.; Converse Field, Sabine Parish, S37/T8/R13; res. A, serial #244838

Thursday, January 10, 2013

EIA: Storage -201 Bcf to 3.316 Tcf

The EIA natural gas storage report showed a 201 Bcf decrease this week, bringing the total working gas in storage to 3.316 Tcf.  The weekly withdrawal was 123% greater than last year (-90 Bcf) and 52% greater than the five year average (-132 Bcf).  The current storage level is now 2.6% below last year (3.404 Tcf) and 10.7% above the five year average (2.996 Tcf).


Even with the positive storage report this week, the storage level still has a lot of ground to make up relative to the five year average, as shown below.  The next two months are critical.


Wednesday, January 9, 2013

Deloitte Study on LNG Export

This week, Deloitte Center for Energy Studies released a report commissioned by Cheniere Energy to study the global impacts of the export of liquefied natural gas (LNG) from the U.S.  The study was made public (I think) in an effort to limit the perception that LNG export would drive up domestic natural gas prices and disrupt the growing movement to develop the manufacturing and chemical industries in the U.S. based on inexpensive and abundant natural gas.

The conclusions largely mirrored those by NERA Economic Consulting in its report to the DOE as part of DOE's consideration of LNG approvals.  Among the highlights:
  • U.S. gas export would hasten the de-coupling of international natural gas contracts tied to the price of oil, especially as existing supply is displaced by U.S. exports and has to find a home.
  • Prices in LNG importing nations would decrease noticeably, but prices in the U.S. would be little changed.
  • The impacts to domestic supply and demand would limit the export capacity of the U.S.
  • Utilities likely would use less gas if prices increase, thus offsetting some of the supply claimed by exporters.

Supply/Demand - October 2012

Last week, the EIA released its monthly production and consumption data for natural gas through October 2012.  Total dry gas production in October was 2.058 Tcf, bringing the total gas produced YTD to 19.979 Tcf.  October 2012 production was 50 Bcf, or 2.5%, higher than October 2011, and YTD production was 980 Bcf, or 5.2%, above the same period last year.  Compared to the ten year average, current YTD production is 3.553 Tcf, or 21.6%, higher.


Looking at the numbers on a per day basis smooths them out but still shows that the current YTD production level is 3 Bcf/day greater than last year.


Monday, January 7, 2013

A Bearish View on the LNG Export Market

Last week, the New York Times published a good piece on the market potential for exporting natural gas via LNG terminals.  It was a balanced piece that looked at the worldwide market for gas and suggested that the changes created by the North American shale gas rush will continue to ripple through the international market and ultimately may limit the potential for North America to export gas.

There are nearly twenty LNG export applications pending now, but only Cheniere Energy has approval from the federal government to export gas to countries without free trade agreements with the U.S., a critical step required by the market to finance an export facility.  The article points out the headwinds facing export, including "upward pressure" on domestic gas prices based on improved fundamentals that will make North American gas more expensive than it is now (my personal favorite), the gradual uncoupling of natural gas and oil prices in Asia and Europe and the export of shale drilling technology.

Sunday, January 6, 2013

Haynesville Shale Rig Count: +1 to 24

The Haynesville Shale rig count was up one last week to 24.  Texas was up one to 11, while Louisiana held at 13.



Friday, January 4, 2013

New Louisiana Completions

  • Colbert Lands 21 H #1-ALT, Encana Corp.: 18.174 MMcf/day IP on 22/64 in. choke at 7,386 psi; Perfs: 12,658-17,146, length: 4,488 ft.; Martin Field, Red River Parish, S16/T14/R11; res. D, serial #243740 
  • Colbert Lands 21 H #3-ALT, Encana Corp.: 22.586 MMcf/day IP on 26/64 in. choke at 6,879 psi; Perfs: 12,599-17,079, length: 4,480 ft.; Martin Field, Red River Parish, S16/T14/R11; res. D, serial #243742 

A Bunch of New Texas Completions

12/10/12 - 1/3/13:
  • Brent Miller Unit A6 #2H, Encana: 11.8 MMcf/day IP, 18/64" choke, 8,948 psi; Perfs: 14,400-20,065, length: 5,665 ft.; Carthage Field (Haynesville Shale), Nacogdoches Co., Survey: CHIRINO, JA, A-17 
  • CGU 14 #51HH, Anadarko E&P: 6.804 MMcf/day IP, 20/64" choke, 5,015 psi; Perfs: 11,298-16,898, length: 5,600 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: DUNCAN, S, A-158 

New Texas Haynesville Permits

12/10/12 - 1/3/13:
  • New Horizons #S 1H, XTO Energy; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: KNOLL, P , A-375 
  • CGU 20 #51HH, Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: MOORE, I, A-464 

U.S. Rig Count: -1 to 1,762

The Baker Hughes rig count was down one this week to 1,762.  Oil rigs were down nine to 1,318, gas rigs were up eight to 439 and miscellaneous rigs held at five.  By type, horizontal rigs were up one to 1,112, vertical rigs were up three to 480 and directional rigs were down five to 170.  Among gas rigs, horizontal rigs were up 11 to 320, directional rigs were down four to 62 and vertical rigs were up one to 57.


This is the third straight week gas rigs have increased.  Over that time, gas rigs have increased by 23, including a net increase of 31 horizontal rigs.

EIA: Storage -135 Bcf to 3.517 Tcf

The EIA reported that gas in storage decreased by 135 Bcf last week, bringing working gas in storage to 3.517 Tcf.  The weekly withdrawal was 75% greater than last year (-77 Bcf) and 22% higher than the five year average (-111 Bcf).  The current storage level is now 0.7% above last year (3.494 Tcf) and 12.4% above the five year average (3.128 Tcf).


Tuesday, January 1, 2013

Haynesville Shale Rig Count: -1 to 23

The Haynesville Shale rig count dropped by one last week to 23.  Anadarko was down one rig in Texas, accounting for the difference.