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.