Staying Power for the Haynesville
Amid the shale frenzy, oil was on an upswing. Oil prices climbed to $147/barrel in July 2008, then began a months-long plummet that eventually took it down to less than a quarter of that peak. A couple of months after the oil peak, investment bank Lehman Brothers collapsed amid the worst depression in more than 75 years. Companies immediately pulled back on drilling everything. But a year later, oil prices were at a comfy $70/b or so while gas had fallen to the $3.50-$4/Mcf level. With too much gas registered in storage bins, upstream companies began shifting to oil operations as the persistent flood of US gas–some of it from increased oil drilling–kept gas prices tamped down.
As for the gassy Haynesville, 28 rigs were drilling the field in second quarter 2008, according to Tudor Pickering Holt’s Weekly Rig Roundup. By second quarter 2009 that number had more than tripled to 91 rigs, TPH said. By that time, Haynesville production had reached 2.3 Bcf/d. Over the next year the number steadily rose, reaching a peak of about 186 rigs in second quarter 2010. when Haynesville production was about 3.9 Bcf/d.
But except for some forays above $5/Mcf in late 2009 and early 2010, and above $4/Mcf since then, the price of gas never really recovered and has largely remained below $4/Mcf, a level that makes oil plays more economically alluring. Last week there were 27 rigs drilling the Haynesville, according to rig data furnished by Global Hunter Securities/ That’s about the same as shortly after Chesapeake’s dramatic announcement.
Meanwhile, the Haynesville continues to produce gas in quantities; so far in March production has been about 5.59 Bcf/d, having gradually wound down from a peak of about 7.34 Bcf/d in November 2011. If nothing else, the giant play appears to have a lot of staying power.
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Replies to This Discussion
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Permalink Reply by Hopeful About Natural Gas on
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The Go Haynesville Shale Blog certainly has staying power! This is still the #1 place to learn about all things related to shale gas in and around the Haynesville. GHS continues to track the development and growth of this field.
I have not contributed in a couple of years, but I will get something out to you soon. I won't be posting so much in 2013 because I have other issues on my plate to deal with. But, I will drop in from time to time and also stay subscribed to the headlines.
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Permalink Reply by P.G. on
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I leased before this forum was born...
Today my crappy lease finally expired...thank goodness....
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Permalink Reply by adubu on
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PG---Hope your minerals are in good location and maybe get drilled one day
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Permalink Reply by P.G. on
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I'm in 17n 15w....
Wells have been drilled in several sections in this township...just not mine...
Hopefully I'll get a second chance...certainly won't be as stupid now thanks to this forum....
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Permalink Reply by Thomas C. McKowen, IV on
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Have any wells been drilled in 17N, R14W? My wife owns 10 acres on which the lease has expired.
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Permalink Reply by dan dugdale on
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I have been seeing equipment trucks going through Shreveport again. I see that as a good sign.
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