• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 52 mins China's Blueprint For Global Power
  • 12 mins ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 3 hours Bloomberg: shale slowing. Third wave of shale coming.
  • 14 hours Boring! See Ya Clowns, And Have Fun In Germany
  • 2 hours Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 4 hours Brexit agreement
  • 21 mins Disenfranchised people are angry people - map of global electoral systems
  • 18 hours Crazy Stories From Round The World
  • 1 hour Erdogan Holds All The Cards ... 3.6 Million Of Them
  • 17 hours the future
  • 14 hours 5 Tweets That Change The World?
  • 2 hours Spain Is On The Edge...Clashes Between Catalonia And "Madrid"
Alt Text

It’s “Feast-to-Famine” For The Global Gas Industry

Oversupply and high stockpiles have…

Alt Text

Is The U.S. Gas Boom Already Over?

As natural gas prices continue…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

This Overlooked Shale Play Just Reported A Huge Rise In Output

The Americas continue to be the world’s top jurisdiction for oil and gas investment. With Chinese super-E&P Cnooc saying this past week it is seeking farm-in deals in newly-opened plays in the Gulf of Mexico. 

And in onshore shale, activity is just a frenetic. With new data showing a surprising surge in drilling for one play that few observers have been watching of late. 

The Haynesville shale of Arkansas, Louisiana and Texas. 

Unconventional drilling in this play has largely been overshadowed by higher-profile shales like the Permian, Eagle Ford and Marcellus/Utica the last few years. In fact, as the chart below shows, overall Haynesville natural gas production had been steadily falling since mid-2013 — up until the beginning of this year. 

(Click to enlarge)

Haynesville shale natural gas production had been falling the last few years — but has recently started to climb (source: Energy Information Administration)

But as you can see in the chart, 2017 has seen a reversal of those declines — with Haynesville production rising steadily so far this year. 

In fact, new data from Platts this week showed that overall Haynesville natgas output was up 35 percent in September — as compared to the same period of 2016. Marking a 4-year high for production.

Rig count numbers also show a resurgence in the Haynesville. With the play currently having 44 rigs deployed on drilling jobs — nearly equal to the 47 rigs at work right now in the much higher-profile Marcellus shale of the northeastern U.S. 

The question is, why? After all, U.S. natural gas prices are still languishing around $3/mcf — hardly the kind of environment where old natgas plays should be attractive.  Related: Is Artificial Intelligence The Next Step In Total's Tech Push?

Part of the answer is, the Haynesville appears to be delivering exceptional drilling results. As the chart below shows, this play has been delivering one of the highest rates of new production per drilling rig in America — handily beating the Permian and Eagle Ford, and second only to the Marcellus. 

(Click to enlarge)

Drilling productivity in the Haynesville has been beating other top shales (source: Energy Information Administration)

Sources have also cited another reason for the Haynesville renaissance: the proximity of the play to the Gulf Coast and Mexico. Where numerous new liquefied natural gas (LNG) export terminals are being built, along with pipelines for exports to Mexican markets. 

Drillers are reportedly betting that rising demand from both LNG and Mexican pipeline shipments will boost local prices. Watch to see if such a rise does indeed come — and for a continued rise in Haynesville activity if prices here firm up.

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Jeffrey Brown on September 21 2017 said:
    Of course, production is still about 30% below the 2012 peak.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play