Friday, June 27, 2014

U.S. Rig Count: +15 to 1,873

The Baker Hughes U.S. rig count was up 15 this week to 1,873.  Oil rigs were up 13 to 1,558, gas rigs were up three to 314 and miscellaneous rigs were down one to one.  By type, horizontal rigs were up 13 to 1,263, vertical rigs were up one to 381 and directional rigs were up one to 229.  Among gas rigs, horizontal rigs were up two to 229, directional rigs were up one to 62 and vertical rigs were unchanged at 23.

Thursday, June 26, 2014

EIA: Storage +110 Bcf to 1.829 Tcf

The EIA reported another healthy increase in working gas in storage, which was up 110 Bcf to 1.829 Tcf.  The weekly injection was 17% higher than last year (+94 Bcf) and 36% above the five year average (+81 Bcf).  The current storage level is now 27.4% below last year (2.519 Tcf, a difference of 690 Bcf) and 31.0% below the five year average (2.651 Tcf, a difference of 822 Bcf).


Temperatures in the lower 48 averaged 72.0 degrees, which was 0.6 degrees warmer than last year and 1.1 degrees warmer than average.

Tuesday, June 24, 2014

Haynesville Shale Rig Count: -1 to 25 vs. Two Weeks Ago

Over the past two weeks, the Haynesville Shale rig count dropped by one to 25.  Louisiana held at 17, while Texas lost one (Valence) to end at eight.


Friday, June 20, 2014

U.S. Rig Count: +4 to 1,858

The Baker Hughes U.S. rig count was up four this week to 1,858.  Oil rigs were up three to 1,545, gas rigs were up one to 311 and miscellaneous rigs were unchanged at two.  By type, horizontal rigs were up two to 1,250, vertical rigs were down eight to 380 and directional rigs were up ten to 228.

Thursday, June 19, 2014

EIA: Gas in Storage +113 Bcf to 1.719 Tcf

The big storage injections continued this week as the EIA reported that working gas in storage was up 113 Bcf to 1.719 Tcf.  This week's injection was 23% above last year (+92 Bcf) and 30% greater than the five year average (+87 Bcf).  The current storage level is now 29.1% below last year (2.425 Tcf, a difference of 706 Bcf) and 33.1% below the five year average (2.57 Tcf, a difference of 851 Bcf).


Friday, June 13, 2014

U.S. Rig Count: -6 to 1,854; Gas rigs: -10

The Baker Hughes U.S. rig count was down six rigs this week to 1,854.  Oil rigs were up six to 1,542, gas rigs were down 10 to 310 and miscellaneous rigs were down two to two.  By type, horizontal rigs were down two to 1,248, vertical rigs were down one to 388 and directional rigs were down three to 218.  Among gas rigs, horizontal rigs were down eight to 229, directional rigs were down one to 55 and vertical rigs were down one to 26.

Thursday, June 12, 2014

EIA: Storage +107 Bcf to 1.606 Tcf

The EIA reported this morning that working gas in storage was up 107 Bcf to 1.606 Tcf this week.  The injection was 10% greater than last year (+97 Bcf) and 22% above the five year average (+88 Bcf).  The current storage level is now 31.2% below last year (2.333 Tcf, a difference of 727 Bcf) and 35.3% below the five year average (2.483 Tcf, a difference of 877 Bcf).


Wednesday, June 11, 2014

New Texas Completions

5/9/14 - 6/10/14:
  • Harris-Munden GU #12H, Sabine Oil & Gas: 6.569 MMcf/day IP, 20/64" choke, 5,415 psi; Perfs: 11,334-15,150, length: 3,816 ft.; Carthage Field (Haynesville Shale), Harrison Co., Survey: LINDSEY, P, A-389 
  • Harris-Munden GU #11H, Sabine Oil & Gas: 7.886 MMcf/day IP, 20/64" choke, 6,015 psi; Perfs: 11,287-15,219, length: 3,932 ft.; Carthage Field (Haynesville Shale), Harrison Co., Survey: LINDSEY, P, A-390 

New Texas Permits

5/10/14 - 6/10/14:
  • CGU 18-21-22 #71HH, Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: LIDDY, W, A-398 
  • W.L. Liston #9H, XTO Energy; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: ROBERTS, H, A-562 

Two Weeks of Louisiana Completions (Through Last Week)

  • Tigre Plantatn LLC 31 H #3-ALT, Petrohawk Operating: 9.218 MMcf/day IP on 16/64 in. choke at 6,921 psi; Perfs: 12,464-16,864, length: 4,400 ft.; Thorn Lake Field, Caddo Parish, S31/T15/R11; res. A, serial #246546 
  • Tigre Plantatn LLC 31 H #2-ALT, Petrohawk Operating: 8.573 MMcf/day IP on 16/64 in. choke at 6,917 psi; Perfs: 12,280-16,834, length: 4,554 ft.; Thorn Lake Field, Caddo Parish, S31/T15/R11; res. A, serial #246537 

Monday, June 9, 2014

Haynesville Shale Rig Count: +1 to 26

The Haynesville Shale rig count was up one this week to 26.  Louisiana was up one (Chesapeake) to 17, while Texas held at nine.


Friday, June 6, 2014

U.S. Rig Count: -6 to 1,860

The Baker Hughes U.S. rig count was down six this week to 1,860.  All of the change was attributable to gas rigs, which were down six to 320.  By type, horizontal rigs were down one to 1,250, vertical rigs were down 14 to 389 and directional rigs were up nine to 221.  Among gas rigs, horizontal rigs were down two to 237, directional rigs were down four to 56 and vertical rigs held at 27.

Thursday, June 5, 2014

EIA: Gas in Storage +119 Bcf to 1.499 Tcf

The EIA reported this morning that working gas in storage was up 119 Bcf to 1.499 Tcf.  The weekly injection was 10% greater than last year (+108 Bcf) and 28% above the five year average (+93 Bcf).  The current storage level is 33.0% below last year (2.236 Tcf, a difference of 737 Bcf) and 37.4% below the five year average (2.395 Tcf, a difference of 896 Bcf).


Wednesday, June 4, 2014

Good Piece on BHP/Petrohawk Three Years Later

Forbes has a good article on the improvement of BHP Billiton's fortunes in shale gas since its acquisition of Petrohawk three years ago.  BHP had pretty disastrous timing in its acquisition of HK and Chesapeake's Fayetteville Shale assets in 2011, shelling out more than $20 billion and then watching  natural gas prices drop by more than 50%.

Only now are prices back in the $4.00 to $4.50/MMBtu range when those deals were struck, but, my oh my, the landscape has certainly changed.  Along with the good points made in the article:
  1. The economy is on a steady path to recovery and fundamental gas use (not just cold winter/hot summer) has increased.
  2. Natural gas in storage, which has been at record highs for the past several years, is now far below recent averages, and it will take full production to get storage back up to a reasonable level by winter.

Tuesday, June 3, 2014

Haynesville Shale Rig Count: -1 to 25

The Haynesville Shale rig count was down one last week to 25.  Louisiana was down one (Chesapeake) to 16, while Texas held at nine.


Monday, June 2, 2014

EPA Carbon Dioxide Rules Finally Released

After much anticipation, the EPA today released its plan to reduce carbon dioxide emissions from power plants by 30% from 2005 levels by 2030.  This is something of a compromise proposal that has something for everyone but still disappoints all involved.  In other words, probably a fair compromise.

The 30% reduction will please environmentalists, but backdating the baseline to 2005 will please the utility industry.  Additionally, the individual states will have the flexibility to set up their own plans, so they will not have a scheme dictated to them from above.

Bottom line, this is a win for natural gas because utilities will have to continue to reduce their coal consumption and shutter coal-fired plants.  In reality, market forces and older environmental regulations were already doing this as utilities opt not to invest in older coal-fired plants and retire them instead.  These new carbon regulations might accelerate the process somewhat but they really don't change the big picture a whole lot.