The Haynesville is continuing its climb back, one that shouldn’t be considered a slow climb either. According to the December 2017 U.S. Energy Information Administration (EIA) Drilling Productivity Report, gas production in the Haynesville region has reached predownturn levels—215 Mcm/d (7.6 MMcf/d). Those production amounts haven’t been seen in the Haynesville since June 2013, when the region was producing 220 Mcm/d (7.8 MMcf/d), according to the EIA.
Although the Haynesville is still the third highest-producing shale play in North America behind the Permian Basin and the gas-producing behemoth Marcellus-Utica, its production is growing at a faster rate than the Marcellus.
Between January 2016 and January 2018, the Haynesville’s gas production increased 25%. Meanwhile, the Marcellus’ production has increased 20% during that span—although it produces almost 566 Mcm/d (20 MMcf/d) more. Production growth in the Haynesville is stemming in part by effi ciency gains. The region’s rig count has held steady since spring 2017, averaging in the mid-40s each month through year-end 2017, but has tripled since a low of 16 operating rigs in April 2016, according to the EIA.
The rigs currently in operation continue to slightly improve their per-day output, producing about 226.5 cu. m/d (8 Mcf/d), up from 218 cu. m/d (7.7 Mcf/d) in January 2018. The Haynesville slightly increased its month-over-month total production by 4 cu. m/d (148 cf/d) from December 2017 to January.
The steady growth the Haynesville experienced in 2017 comes on the heels of a study by the U.S. Geological Survey (USGS) released in April that reported the Bossier and Haynesville formations contain an estimated 4 Bbbl of oil, 8.6 Tcm (304 Tcf) of natural gas and 1.9 Bbbl of NGL. The updated estimates represent the largest continuous natural gas assessment the USGS has conducted.
Recommended Reading
Kinder Morgan Nominates Deloitte’s Amy Chronis to Board
2024-04-03 - Amy Chronis, currently a senior partner with Deloitte, will stand for election along with Kinder Morgan’s current directors at the company’s annual meeting on May 8.
Canadian Natural Resources Boosting Production in Oil Sands
2024-03-04 - Canadian Natural Resources will increase its quarterly dividend following record production volumes in the quarter.
Equitrans Midstream Announces Quarterly Dividends
2024-04-23 - Equitrans' dividends will be paid on May 15 to all applicable ETRN shareholders of record at the close of business on May 7.
Baker Hughes Awarded Saudi Pipeline Technology Contract
2024-04-23 - Baker Hughes will supply centrifugal compressors for Saudi Arabia’s new pipeline system, which aims to increase gas distribution across the kingdom and reduce carbon emissions
Dividends Declared in the Week of May 6
2024-05-10 - Here is a selection of upstream, midstream and service and supply companies’ dividends declared in the past week.