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Permalink Reply by griiker on September 12, 2008 at 12:31

Good article. especially when it talks about the infrastructure issues. leads me to think that some producers are concentrating on establishing their proven reserves, drilling "test wells" to establish them. This will help them look more attractive in the stock market.

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Permalink Reply by Rick on September 12, 2008 at 14:19

That's an interesting article Bn2 and kinda reflects what alot of us have been wondering about as we have watched our area develop. I hope that CHK, PTK, and others are thinking ahead and working marketing deals with large companies that use natural gas and will have sales made and even more reason to run more pipelines.

I know that the growth that has taken place in the Ark-La-Tex and the surrounding area in general in the past 5-10 years has created a larger need for electric power and with AEP, TXU, Entergy, CLECO, and city owned and rural co-ops all needing more generation capacity, they would probably love to be able to lock in some long term gas contract prices. The inability to secure long term price contracts is one of the main reasons why these companies have been reluctent to build new, cleaner, more efficient gas burning power plants.
I've worked in the power industry a long time and I know that these companies would rather build gas burners to help meet their customers generation needs as well as meet EPA and DEQ compliance rules. They cost less and are quicker to build and operation cost can rival coal burners but only if the gas supply price is low enough to justify it.

If the gas suppliers work some big and long term contracts with utilities, it could keep the price of electricity in our area low enough to compete with other industrial areas and could help encourage more development at the Port of Shreveport and other industrial sites. There is a large need for natural gas and for electric power at the port and the lack of these has, IMHO, has contributed to large steel companies and other companies from locating in our area. These long term contracts could be good for the gas companies and for local landowners that hold mineral leases because it would ensure a long term, continuous sale of our HS product and as production grows, would still allow for other sales on weekly and monthly contract basis.
Just a thought.

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Permalink Reply by Landowner on September 12, 2008 at 14:53

I believe what McClendon said about the market and supply and demand will play a major role in the development of the Haynesville Shale. If we can just get the nation as a whole to convert to natural gas cars then, their will never be a concern for a bubble.

"The Haynesville is fascinating in the sense that I think it can do whatever the market needs it to," he said. If the nation is successful in developing alternative uses for gas, for example in the form of compressed natural gas for cars, the market for natural gas could accelerate in coming years, he said.

"If that market doesn't develop then I think the Haynesville will not develop as quickly," McClendon said. "I kind of see the Haynesville as this enormous big gas resource and its tempo of development, I think, will be determined by the growth in gas demand and if that gas demand skyrockets then I think production can do the same."

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Permalink Reply by KT on September 12, 2008 at 17:41

Use a long hose .... exactly like an extension cord - only different. Hope you got the joke. But really - I have ran cars on those propane torch bottles you use to solder. You just have to get the air/fuel mixture right and they run like a top. Would be tough to rev up a weedeater to adequate rpms. Idea needs more work before I market the Xtendahose.

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