
Chesapeake Intentionally Reducing Haynesville Gas Production, Rigs
The Oklahoma City-based E&P is intentionally letting Haynesville natural gas production fall off this year as the industry faces a volatile supply-demand imbalance.
Chris Mathews joined Hart Energy as Senior Reporter of Shale and A&D in February 2023. He covers the North American upstream shale energy industry and the acquisition and divestiture deal markets. Before joining Hart, Mathews spent over four years with the Houston Business Journal, most recently as Energy Reporter. He began his reporting career with HBJ covering Houston’s finance and technology sectors. Mathews graduated from the University of Missouri School of Journalism with a bachelor’s degree in 2016. He was born and raised in San Antonio, Texas.
The Oklahoma City-based E&P is intentionally letting Haynesville natural gas production fall off this year as the industry faces a volatile supply-demand imbalance.
Executives from E&Ps such as GeoSouthern Energy and New ASEAN Energy said they are adjusting drilling and hedging strategies in the Haynesville Shale after a rapid collapse in U.S. natural gas prices.
The Permian led the nation in drilling rig activity in the past year, with data showing much of that growth coming from large, public upstream operators as private companies such as CrownQuest Operating, Iskandia Energy and Mack Energy have downshifted.
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VTX Energy, backed by Swiss oil trader Vitol, purchased 35,000 net leasehold acres with an average production of 40,000 boe/d in the Delaware Basin’s Pecos and Reeves counties, Texas, in a deal Enverus said could be valued at $1.5 billion to $2 billion.
Gas-directed rig activity in key U.S. plays, including the Marcellus Shale and Permian Basin, increased in a big way last week, but analysts expect cuts to the rig count later this year.
Sempra Infrastructure is moving forward on building the first phase of Port Arthur LNG, which is expected to cost around $13 billion and closed a joint venture with ConocoPhillips.
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Despite recent price volatility, natural gas output from key regions including the Permian and Haynesville is expected to grow from March to April, according to the Energy Information Administration.
Ventura exits Range Resources weeks after reports that the Marcellus E&P might be purchased by Pioneer Natural Resources, which the Permian company denied.
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