Thursday, February 19, 2009
Friday, February 13, 2009
We Might Be Exporting NG Soon
I read this on theoildrum.com this morning. I almost blew my coffee all over the keyboard!
"The Ukraine-Russia gas tiff is a first taste of the transnational energy disputes to come. Simmons believes Moscow's saber rattling is political cover for a more serious problem: a shortage of gas in Gazprom's pipeline system. "This is really serious stuff. We've had a peak in Russian gas. Next year Europe is toast. Cold toast." Could he be right? Chief Executive Alexei Miller stated last July that Gazprom's output had flattened out below 2006 production levels. Russia is already importing gas from the central Asian "Stans" and exporting it to Europe."
If this is true, NG could be exported from the Haynesville Shale to Europe next FALL. The infrastructure is already in place down at the LNG Sabine Pass facility. The Majors will get to the bottom of this and we'll hear something more concrete soon.
"The Ukraine-Russia gas tiff is a first taste of the transnational energy disputes to come. Simmons believes Moscow's saber rattling is political cover for a more serious problem: a shortage of gas in Gazprom's pipeline system. "This is really serious stuff. We've had a peak in Russian gas. Next year Europe is toast. Cold toast." Could he be right? Chief Executive Alexei Miller stated last July that Gazprom's output had flattened out below 2006 production levels. Russia is already importing gas from the central Asian "Stans" and exporting it to Europe."
If this is true, NG could be exported from the Haynesville Shale to Europe next FALL. The infrastructure is already in place down at the LNG Sabine Pass facility. The Majors will get to the bottom of this and we'll hear something more concrete soon.
Monday, February 9, 2009
WSJ "Bad Call" Article
These Initial Production rates on HS wells are now up to 24mmcf/d ....Good article on the bust of the LNG import market on the Gulf too. Read the full article at the WSJ here:
http://online.wsj.com/article/SB123378467642449289.html?mod=googlenews_wsj
Shale Shock
Forecasts can swing abruptly when it comes to figuring out where natural gas is needed and how much. Expectations of future supply can change quickly, too. As this market grows and adjusts, once-lauded business plans can quickly be swept aside.
"There is still a lot of uncharted territory," says Bob Fryklund, vice president of industry relations at energy consulting firm IHS Inc. in Houston. "People are still trying to understand how this market works."
A few years ago, most people looked at U.S. natural-gas production and saw it entering a slow, terminal decline. But in fact, the opposite has happened. Rising prices and easy financing encouraged a horde of companies to develop "unconventional" gas fields such as the Barnett and Haynesville shales, located, respectively, in north Texas and along the Texas-Louisiana border. These shale wells, once thought to be too costly and difficult to exploit, succeeded beyond everyone's expectations.
"We went through a period of high prices that allowed a higher-priced supply to mature enough that costs have come down," says Jen Snyder, head of North American natural-gas research for Edinburgh-based consultant Wood Mackenzie.
The unconventional wells are producing more gas with each passing season -- and becoming less expensive to drill. Recently drilled wells in the Haynesville shale are starting off at 24 million cubic feet a day and are profitable even with natural-gas prices as low as $4 per million British thermal units. "Huge," was the succinct appraisal of the Haynesville shale recently by a BMO Capital Markets energy analyst.
This surge of new gas has lowered domestic prices and reduced the need for imports. Meanwhile, companies that bought into the earlier vision of soaring imports and strings of new terminals went from being Wall Street darlings to also rans
http://online.wsj.com/article/SB123378467642449289.html?mod=googlenews_wsj
Shale Shock
Forecasts can swing abruptly when it comes to figuring out where natural gas is needed and how much. Expectations of future supply can change quickly, too. As this market grows and adjusts, once-lauded business plans can quickly be swept aside.
"There is still a lot of uncharted territory," says Bob Fryklund, vice president of industry relations at energy consulting firm IHS Inc. in Houston. "People are still trying to understand how this market works."
A few years ago, most people looked at U.S. natural-gas production and saw it entering a slow, terminal decline. But in fact, the opposite has happened. Rising prices and easy financing encouraged a horde of companies to develop "unconventional" gas fields such as the Barnett and Haynesville shales, located, respectively, in north Texas and along the Texas-Louisiana border. These shale wells, once thought to be too costly and difficult to exploit, succeeded beyond everyone's expectations.
"We went through a period of high prices that allowed a higher-priced supply to mature enough that costs have come down," says Jen Snyder, head of North American natural-gas research for Edinburgh-based consultant Wood Mackenzie.
The unconventional wells are producing more gas with each passing season -- and becoming less expensive to drill. Recently drilled wells in the Haynesville shale are starting off at 24 million cubic feet a day and are profitable even with natural-gas prices as low as $4 per million British thermal units. "Huge," was the succinct appraisal of the Haynesville shale recently by a BMO Capital Markets energy analyst.
This surge of new gas has lowered domestic prices and reduced the need for imports. Meanwhile, companies that bought into the earlier vision of soaring imports and strings of new terminals went from being Wall Street darlings to also rans
Sunday, February 8, 2009
Serious Rumers
The latest talk in the gas patch is that Exxon/Mobil wants more leases in the shale and will soon gobble up several smaller independents this spring...Have you people seen the new production rates from PetroHawk? lol They're now doing something like 15 frac stages and showing upwards of 22mmcf/d...These are monster wells with roughly 8700 psi...per acre our wells in the ArkLaTex stack-up against any in the world, no doubt.
Did ya'll know that Obama's chief of staff (Rob Emanuel) is the one that is pushing for more natural gas in our transportation system? It's cleaner than gas (obviously) and produced here...Anyone go to that Boone Pickens meeting in Shreveport last fall? He kept going on about our local production of NG and how we're going to transform our transportation network. Maybe between Boone and Emanuel we can finally get it done, huh.
Did ya'll know that Obama's chief of staff (Rob Emanuel) is the one that is pushing for more natural gas in our transportation system? It's cleaner than gas (obviously) and produced here...Anyone go to that Boone Pickens meeting in Shreveport last fall? He kept going on about our local production of NG and how we're going to transform our transportation network. Maybe between Boone and Emanuel we can finally get it done, huh.
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