Thursday, July 31, 2014

EIA: Gas in Storage up 88 Bcf to 2.307 Tcf

The EIA reported this morning that working gas in storage was up 88 Bcf to 2.307 Tcf.  The weekly injection was 54% higher than last year (+57 Bcf) and 91% greater than the five year average (+46 Bcf).  The current storage level is now 18.7% below last year (2.837 Tcf, a difference of 530 Bcf) and  21.7% below the five year average (2.948 Tcf, a difference of 641 Bcf).


Tuesday, July 29, 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 and EXCO up one each, Petrohawk down one) to 17 and Texas was unchanged at eight.

Friday, July 25, 2014

U.S. Rig Count: +12 to 1,883

The Baker Hughes U.S. rig count was up twelve this week to 1,883.  Oil rigs were up eight to 1,562, gas rigs were up three to 318 and miscellaneous rigs were up one to three.  By type, horizontal rigs were up five to 1,293, vertical rigs were down five to 361 and directional rigs were up twelve to 229.  Among gas rigs, horizontal rigs were up two to 232, directional rigs held at 64 and vertical rigs were up one to 22.

Thursday, July 24, 2014

EIA: Gas in Storage +90 Bcf to 2.219 Tcf

The EIA reported this morning that working gas in storage was up 90 Bcf to 2.219 Tcf.  The weekly injection was more than double last year (+43 Bcf) and 96% greater than the five year average (+46 Bcf).  The current storage level is now 20.2% below last year (2.78 Tcf, a difference of 561 Bcf) and 23.5% below the five year average (2.902 Tcf, a difference of 683 Bcf).


Tuesday, July 22, 2014

Haynesville Shale Rig Count Unchanged at 26

The Haynesville Shale rig count didn't budge last week, holding at 26.  Louisiana stayed at 18 and Texas held at eight.  Sure, there were some rigs moving around, but net-net, nothing changed.

NatGas Price Keeps Dropping

The Henry Hub spot price of natural gas dropped below the five year average this week for the first time since mid-January, hitting $3.84/MMcf yesterday.


Late summer typically sees gas prices drop, but the continued high injections into storage has probably accelerated this recent swoon.  Storage injections have stayed in the +100 Bcf/week range for several months, but the current level still lags the five year average by 727 Bcf.  While there is little chance that the current level will catch up to the average level before the end of the injection season in November, a warm winter will wipe out the deficit in short order and gas prices will be locked back in the 3's for a good long time.

Friday, July 18, 2014

Slim Haynesville Activity in Texas in Past Couple of Weeks

There were no new Haynesville Shale permits filed in Texas over the past couple of weeks, and only one completion in that same period (7/7 - 7/17):

  • Minutemen DU #1H, XTO Energy: 11.321 MMcf/day IP, 18/64" choke, 7,179 psi; Perfs: 12,580-20,133, length: 7,553 ft.; Carthage Field (Haynesville Shale), Shelby Co., Survey: BOUNDS, TW, A-1186

Only One New Louisiana Completion in Past Two Weeks

  • Hunt Plywood 6 H #2-ALT, Petrohawk Operating: 9.835 MMcf/day IP on 16/64 in. choke at 7,393 psi; Perfs: 12,219-16,718, length: 4,499 ft.; Caspiana Field, DeSoto Parish, S36/T15/R13; res. A, serial #245581 
I missed this one a few weeks ago:
  • Lucky Family 17-20 HC #2-ALT, Encana Corp.: 23.089 MMcf/day IP on 27/64 in. choke at 7,192 psi; Perfs: 11,137-18,334, length: 7,197 ft.; Sligo Field, Bossier Parish, S17/T17/R12; res. D, serial #246971

U.S. Rig Count: -4 to 1,871

The Baker Hughes U.S. rig count was down four this week to 1,871.


Oil rigs were down nine to 1,554, gas rigs were up four to 315 and miscellaneous rigs were up one to two.  By type, horizontal rigs were up 12 to 1,288, vertical rigs were down 11 to 366 and directional rigs were down five to 217.  Among gas rigs, horizontal rigs were unchanged at 230, directional rigs were unchanged at 64 and vertical rigs were up four to 21.

Thursday, July 17, 2014

EIA: Gas in Storage +107 Bcf to 2.129

Another week, another big storage increase.  The EIA reported this morning that working gas in storage was up 107 Bcf to 2.129 Tcf.  The weekly injection was 73% greater than last year (+62 Bcf) and 65% above the five year average (+65 Bcf).


The current storage level is now 22.2% below last year (2.737 Tcf, a difference of 608 Bcf) and 25.5% below the five year average (2.856 Tcf, a difference of 727 Tcf).  As shown below, the 2014 deviation from the five year average is becoming a mirror image of 2012 when storage levels blossomed before returning to more normal levels later in the year.  While the current storage level is still nearly 3/4 of a Tcf below the five year average, higher than normal storage injections for the past three months have steadily chipped away at that deviation.

Monday, July 14, 2014

Haynesville Shale Rig Count: +1 to 26

The Haynesville Shale rig count was up one last week to 26.  Texas held at eight (EXCO down one, Goodrich up one) and Louisiana was up one (EXCO up one).  In Texas, we saw the first new rig in Angelina County since February 2012 (actually is started drilling a several weeks ago, but I missed it).

Friday, July 11, 2014

U.S. Rig Count: +1 to 1,875

The Baker Hughes U.S. rig count was up one this week to 1,875.  Oil rigs were up one to 1,563, while gas and miscellaneous rigs held at 31 and one, respectively.  By type, horizontal rigs were up eight to 1,276 (an all time high, although not a big record to break since it was set only last week, and the week before...), vertical rigs were down seven to 377 and directional rigs were unchanged at 222.  Among gas rigs, horizontal rigs were up one to 230, directional rigs were up one to 64 and vertical rigs were down two to 17.

Thursday, July 10, 2014

EIA: Gas in Storage +93 Bcf to 2.022 Tcf

The EIA reported this morning that working gas in storage was up 93 Bcf to 2.022 Tcf.  The weekly injection was 16% greater than last year (+80 Bcf) and 29% above the five year average (+72 Bcf).  The current storage level is now 24.4% below last year (2.675 Tcf, a difference of 653 Bcf) and 27.6% below the five year average (2.791 Tcf, a difference of 769 Tcf).


Monday, July 7, 2014

Four Weeks of Louisiana Completions

(OK, I got behind while on vacation, catching up from being on vacation, etc., etc.  With this post, I'm now caught up and free to fall behind again.)

  • CPS Timberlands 33 #1-ALT, EXCO Operating: 12.84 MMcf/day IP on 20/64 in. choke at 7,164 psi; Perfs: 12,642-17,271, length: 4,629 ft.; Caspiana Field, DeSoto Parish, S28/T14/R12; res. A, serial #246842 
  • Yarbrough Et. Al 18-7 H #1, Anadarko: 1.316 MMcf/day IP on 24/64 in. choke at 810 psi; Perfs: 10,084-16,504, length: 6,420 ft.; Caddo Pine Island Field, Caddo Parish, S18/T20/R14; res. A, serial #246105 

New Texas Completions

6/11/14 - 7/6/14:
  • Duke Rudman Gas Unit #A1H, XTO Energy: 8.549 MMcf/day IP, 16/64" choke, 5,444 psi; Perfs: 11,273-15,660, length: 4,387 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: SPENCER, WM, A-617 
  • Duke Rudman Gas Unit #M1H, XTO Energy: 6.699 MMcf/day IP, 15/64" choke, 5,134 psi; Perfs: 11,288-15,900, length: 4,612 ft.; Carthage Field (Haynesville Shale), Panola Co., Survey: WILLIAMS, E, A-736 

Haynesville Shale Rig Count Unchanged at 25

Over the past two weeks, the Haynesville Shale rig count has held steady at 25, with neither Louisiana (17) nor Texas (8) budging.


New Texas Permits (Including One From Long-Lost Goodrich)

6/11/14 - 7/6/14:
  • CGU 25-26 #72HH, Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: O'BANNON, G, A-519 
  • CGU 25-26 #73HH, Anadarko E&P; Carthage Field (Haynesville Shale), Panola Co. Co., Survey: O'BANNON, G, A-519 

Thursday, July 3, 2014

U.S. Rig Count: +1 to 1,874

The Baker Hughes U.S. rig count was up one rig this week to 1,874.  Oil rigs were up four to 1,562, gas rigs were down two to 311 and miscellaneous rigs were unchanged at one.  By type, horizontal rigs were up five to 1,268, vertical rigs were up three to 384 and directional rigs were down seven to 222.  Among gas rigs, horizontal rigs were unchanged at 229, directional rigs were up one to 63 and vertical rigs were down four to 19.

EIA: Gas in Storage +100 Bcf to 1.929 Tcf

The EIA announced this morning that working gas in storage was up 100 Bcf to 1.929 Tcf.  The weekly injection was 32% greater than last year (+76 Bcf) and 47% above the five year average (+68 Bcf).  The current storage level is now 25.7% below last year (2.595 Tcf, a difference of 666 Bcf) and 29.1% below the five year average (2.719 Tcf, a difference of 790 Bcf).


Temperatures last week in the Lower 48 averaged 73.7 degrees, which was 1.1 degrees warmer than last year and 1.1 degrees cooler than average.