From Watts Up With That?
Featured image from Midwest Capital Advisors
Guest “Déjà vu all over again” by David Middleton
From the US Energy Information Administration:
MAY 3, 2023
Data source: Enverus, state administrative data
Dry natural gas production from the Haynesville shale play in northeastern Texas and northwestern Louisiana reached new highs in March 2023, averaging 14.5 billion cubic feet per day (Bcf/d), 10% more than the 2022 annual average of 13.1 Bcf/d, according to data from Enverus. Haynesville natural gas production currently accounts for about 14% of all U.S. dry natural gas production.
Data source: Enverus, state administrative data
The Haynesville is the third-largest shale gas-producing play in the United States, behind the Marcellus play in the Appalachian Basin and the Permian play in Texas and New Mexico. In 2022, dry natural gas production averaged 25.2 Bcf/d from the Marcellus play (83% of Appalachian Basin production) and 15.4 Bcf/d from the Permian play. The Marcellus, the Permian, and the Haynesville plays combined account for 55% of U.S. dry natural gas production.
Natural gas production in the Haynesville increased in 2022, from an average 12.4 Bcf/d in January to 13.9 Bcf/d in December. Natural gas prices rose relatively steadily through the summer of 2022 as well. The U.S. benchmark Henry Hub, after reaching a monthly high for the year in August at $8.81 per million British thermal units (MMBtu), declined to average $5.53/MMBtu in December—still 26% higher than at the start of the year. Drilling costs in the Haynesville tend to be higher because natural gas wells in the play are deeper than in other plays. As natural gas prices rose in 2022, economics for developing new wells in the Haynesville improved, which led some producers to add more rigs in the play and increase production.
Data source: Thompson Reuters pricing data and Baker Hughes Company weekly rig count data
The rise in active natural gas-directed rigs in the Haynesville in 2022, as reported by Baker Hughes, followed rising natural gas prices. In the Haynesville, an average of 65 rigs were in operation in 2022, a 43% increase compared with 2021. In the first three months of 2023, as natural gas prices fell, the number of active rigs in the Haynesville plateaued at about 68 rigs.
Pipeline takeaway capacity out of the Haynesville is currently estimated to be around 16 Bcf/d, according to S&P Global Commodity Insights. The Enterprise Products Partners’ Gillis Lateral pipeline and the associated expansion of the Acadian Haynesville Extension, which both move natural gas from the Haynesville to demand centers and liquefied natural gas terminals along the U.S. Gulf Coast, were the most recent pipeline projects to enter service (December 2021) in the region.
In addition, three new pipeline projects, if completed on time, will add 5.0 Bcf/d of takeaway capacity out of the Haynesville by the end of 2024:
- Williams’ Louisiana Energy Gateway (1.8 Bcf/d)
- Momentum Midstream’s New Generation Gas Gathering (NG3) (1.7 Bcf/d)
- TC Energy’s Gillis Access project (1.5 Bcf/d)
Principal contributor: Katy Fleury
Tags: production/supply, natural gas, Haynesville
Just over one year ago…
Haynesville Shale: Record Natural Gas Production
Guest “Fracking A, Bubba,” by David Middleton
EIA Drilling Productivity Report
The Haynesville Shale (technically Haynesville/Bossier) in northeast Texas and northwest Louisiana is the third largest natural gas play, in terms of production rate and proved reserves, in these United States. Haynesville gas production set a record high in 2021 and will likely break that record this month.
EIA Dry shale gas production estimates by play
From 2000 to 2022, “shale” gas production soared from 3 Bcf/d to 80 Bcf/d. When you add in natural gas production from conventional reservoirs, the total is currently 113 Bcf/d… Pretty awesome… Right? Malthusians would be warning us that we are draining our reserves and should conserve the gas for… A rainy day, I guess.
“Riddle me this, Batman”…
Abiotic oil aficionados will be salivating like Pavlov’s dog when they see the following graph (the one for crude oil is very similar).
The data sources:
- U.S. Crude Oil and Natural Gas Proved Reserves, Year-end 2021
- U.S. Natural Gas Marketed Production (Million Cubic Feet)
Riddle me this, Batman… How is it possible that we produced 1,302,951 Bcf (1,303 Tcf) of natural gas from 1963-2022, when the total proved reserves have never exceeded 625,373 Bcf (625 Tcf)?
Hint: The answer lies in the definition of “proved reserves.” To those who come up with other hypotheses to solve the riddle, Sasquatch says…
I should have included the definition of proved reserves in the post.
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