Harrison County facility to serve Haynesville Shale, conventional natural gas operations
By MIKE ELSWICK
http://www.news-journal.com/money/content/business/stories/2009/11/...
Sunday, November 22, 2009

Natural gas has replaced oil as the kingpin of East Texas energy output.

That fact was cemented in a $13 million investment by one of the world's largest energy companies as it primes itself to be a major player in the development of the Haynesville Shale natural gas field that straddles East Texas and Northwestern Louisiana.

BP America, the U.S. arm of the company formerly known as British Petroleum, has had a presence in East Texas since the 1940s through predecessor companies such as Amoco, according to Arno Appel, operations center manager for a new 25-acre BP campus south of Interstate 20 and west of Farm to Market Road 3251.

"This office sits on the edge of one of the largest — possibly the largest — onshore natural gas discoveries in the history of this great country, the Haynesville Shale," said Appel during the Nov. 13 grand opening ceremony for the Harrison County facility.

"With the advent of the Haynesville Shale development and our existing 300,000 acres of development in this area, it made perfect sense to house all of our expertise in the area under one roof in Hallsville."

While the deep Haynesville Shale may be the focus of the future in East Texas for BP, there are 100 million other reasons daily for the company to operate here, according to David Pierpoline, operations manager for BP's business from Mississippi to New Mexico. He said the region's conventional natural gas production sources for the for the company are substantial.

"BP operates 1,000 conventional gas wells in the area that are producing 100 million cubic feet of natural gas per day — which is significant," Pierpoline said. He said the public does not often hear about the conventional gas that's being developed in this area because the Haynesville has become the "sexy" play.

Pierpoline said conventional gas production in formations such as the Cotton Valley is "tried, trusted and reliable and forms a foundation to develop the technology and techniques that enable unconventional gas development such as the shale plays."

Pierpoline said the company placed its first Haynesville Shale well into commercial production Nov. 10. That milestone was the first of what BP officials expect to be many other deep gas wells in the region.

Appel said company research indicates the Haynesville should be providing the nation with natural gas for years. Projections are the field will produce for several decades.

BP's new campus includes a 25,000-square-foot office building that already houses about 100 BP employees and could accommodate about 100 more if market conditions justify it, a 15,000-square-foot warehouse and a 5,500-square-foot conference center and training facility.

Appel said moving into the new site allowed BP to consolidate operations formerly housed in Longview, Marshall and Carthage. He said the facility was designed with its own energy efficiency in mind and incorporates a number of environmentally green features.

The campus supports BP oil and natural gas operations in six Texas counties — Upshur, Gregg, Rusk, Panola, Harrison and Shelby – and Louisiana's DeSoto Parish. The 25-acre campus supports BP's two drilling programs — Haynesville Shale and conventional natural gas.

State Rep. Tommy Merritt, R-Longview, was among area elected officials attending the facility's grand opening. He said with BP's resources, it could be making an investment like the one made in East Texas anywhere in the world.

"BP reached into their back pocket because they were convinced this was the right place to make this investment," Merritt said. "As far as the nation and Texas go, the impact of what's happening here will probably outlive all of us."

BP officials estimate the U.S. has a recoverable natural gas supply of 50 years to 100 years.