Replies to This Discussion

Permalink Reply by MKM on August 23, 2011 at 12:54

Skip - does it stand to reason then that in areas where there is some concentrated activity, i.e. the Chesapeake development in Ashland (LA) that the prospects for drilling are nearer rather than farther away?

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Permalink Reply by Skip Peel - Mineral Consultant on August 23, 2011 at 13:07

MKM, the Ashland Field would not qualify as an area of concentrated activity IMO.  The dynamics I am stating apply only to Petrohawk and only in areas where they already have existing leasehold and drilling units.  A lot of us would very much like to see a completion report from the Ashland area.

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Permalink Reply by Les Bamburg on August 23, 2011 at 15:43

MKM, each operator is choosing the area of the Haynesville/Bossier Shale play that will be the focus of their initial development activity.  Over time they will move on to other areas of the play.  Most areas have plenty of 3rd party gathering & treating infrastructure but some areas (ie Sabine & Natchitoches Parish) are playing catch-up on infrastructure development.

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Permalink Reply by Les Bamburg on August 23, 2011 at 15:38

HANG, BHP's Mike Yeager was anxious to build their E&P resource position and his prior experience in the US a focus of potential acquisition targets. 

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Permalink Reply by Bruce on August 23, 2011 at 17:31

I've heard the rumors about BHP bringing in as many as 30 rigs to the Haynesville play. I'm just wondering with NG so low, what would be the benefit to them at this time?

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Permalink Reply by Les Bamburg on August 23, 2011 at 18:18

Bruce, there is no real benefit so I think that may speak to the quality of the rumor.

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Permalink Reply by DrWAVeSport Cd1 on August 24, 2011 at 5:05

BHP Billiton CEO Kloppers on CNBC this a.m.  He was quite uninformative per HK acquisition, really just that, an aquisition for diversification of portfolio.  He did say he thinks Shale plays are changing, larger corporations coming in to plays.  If Kloppers has any other plans for HS, he is keeping it quiet for now.

Kloppers and Kramer on MSNBC this a.m.  Kramer in the Bakken this a.m.  Totally different take up there per enthusiasm.  Kramer is the Media Spokesperson for Shale, I will give him that! 

Could be this 104 degree heat/no rain thing accounting for my lack of enthusiasm.   Still opine that all things are for sale in the O&G Business, at all times.   Thus the HS has to keep paying for itself and nat gas prices have to go up or it too will be hanging a FOR SALE sign up.  Hoping against, but...

DrWAVeSport Cd1  8/24/2011

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Permalink Reply by Skip Peel - Mineral Consultant on August 24, 2011 at 5:15

Unfortunately we will not see national energy policy favorable to increased natural gas usage until the bulk of shale reserves are acquired by the global energy companies.  The ones that have the political power to defeat the coal/electric utility/railroad/inland waterway transportation lobby in Congress.

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Permalink Reply by Les Bamburg on August 24, 2011 at 9:17

Skip, I believe you over-estimate the political power of the global energy players especially since most are not even US companies.

 

The environmental groups will have a bigger impact on US natural gas consumption as EPA continues to address air and land impacts related to coal.  

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Permalink Reply by Skip Peel - Mineral Consultant on August 24, 2011 at 9:25

IMO, the Seven Sisters have tremendous clout on the Hill regardless of where their corporate headquarters are located.  Environmental groups will never have the political leverage required on their own.  I think business interests are key to moving this issue.

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Permalink Reply by Les Bamburg on August 24, 2011 at 13:36

Skip, there are only two sisters left and they don't carry that much clout when compared to other business interests.  The environmental groups and academia have an "in" with the EPA who is currently driving the boat.  This is the agency that establishes the cost of pollutants and GHG emissions.  Power generation is the only consumer segment that can move the needle for natural gas consumption.  

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Permalink Reply by Skip Peel - Mineral Consultant on August 24, 2011 at 13:37

Congress is the key.  And the oil majors have plenty of stroke on the Hill.

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