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.