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Oil & Gas ProPermalink Reply by Les Bamburg on March 31, 2010 at 17:05

Lethal, each graph just shows how gas production (billion cubic feet per day or Bcfd) has changed over time since January 2005.

For example the total US production (Lower 48) increased from ~ 55 Bcfd in early 2006 to ~ 63 Bcfd in mid 2008 as a result of the increase in gas drilling activity. Production has remained relatively steady since then despite a significant decrease in the number of gas drilling rigs. This is due to increased drilling efficiency and shifting gas rigs to better gas plays such as the Haynesville Shale, Marcellus Shale, Fayetteville Shale, etc.

There are similar graphs for five of the larger producing states and the Gulf of Mexico. You can see the rapid increase in Louisiana gas production since late 2008 related to development of the Haynesville Shale.

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landownerPermalink Reply by sesport on March 31, 2010 at 23:26

Les - To what would you attribute the steep decline in NM?

thanks 80)

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Oil & Gas ProPermalink Reply by Les Bamburg on April 1, 2010 at 3:02

Sesport, the graph actually exaggerates the decline as it only averages about 3.3% per year. There has been minimal gas drilling activity in New Mexico in recent years and no large new field discoveries. So the existing gas fields are declining at this slow steady rate.

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landownerPermalink Reply by sesport on April 2, 2010 at 1:05

Thank you, Les. I've read that NM production is about a third from coalbed methane, but I've also read a fleeting mention of shale gas. Any idea what this could be?

80)

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Oil & Gas ProPermalink Reply by Les Bamburg on April 2, 2010 at 3:03

Sesport, there is shale gas potential from the Niobrara (Pierre) Shale in northeast New Mexico. El Paso is the biggest player but it is not a big part of their capital program.

I have not checked in a couple of years but New Mexico coalbed methane (CBM) production was about 1.3-1.4 Bcfd mostly from the San Juan Basin but with some small amount from the Raton Basin.

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Permalink Reply by Josh on April 5, 2010 at 2:53

Les, what is the source of this data? Did you put this together?

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Oil & Gas ProPermalink Reply by Les Bamburg on April 5, 2010 at 3:23

Josh, the graphs are based on EIA (Energy Information Agency) data.

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Permalink Reply by Josh on April 6, 2010 at 5:08

Thanks Les

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