From a trend once thought to be unpromising because of its dense rock formations, the Barnett Shale natural gas field in North Texas, unlocked by technology, has officially become the largest gas producer in the state, with output up 22% in 2004.

The Railroad Commission of Texas (RRC) said the Barnett Shale field solidified its position in 2004 with production at almost 370 Bcf. Devon Energy Corp. led the way for the state, with its Barnett output at 200 Bcf. Last year, Devon drilled more than 1,900 wells in the Barnett Shale, and overall, it holds 390,000 net acres in the trend. In total, Devon produced 337.2 Bcf in Texas last year, taking first place statewide with about 6.9% of total gas output. Anadarko Petroleum and Anadarko E&P Co. L.P. combined produced 248.2 Bcf, slightly more than ConocoPhillips, the 2003 leader, which reported 245.9 Bcf, or 5% of the total output.

Last year, gas output in Texas reached 5.8 Tcf, almost exactly equal to 2003 production. The 2004 total, which includes preliminary figures for December, was within the production range of between 5.6-5.8 Tcf. annually over the last seven years. In 1972, gas production in Texas peaked at 9.6 Tcf. Still, the Lone Star State remains the largest domestic gas producer. It accounts for about 25% of the 20 Tcf produced annually.

Devon’s gas production in Texas, especially in the Barnett Shale, has steadily grown since it acquired Barnett’s first major producer, Mitchell Energy & Development Corp., in 2001 (see Daily GPI, Aug. 15, 2001). Mitchell began developing the Barnett Shale in 1999 after developing a hydraulic fracturing technique to horizontally drill into the hard rock. Since 1999, the area has produced nearly 1.3 Tcf of gas. The U.S. Geological Survey estimates the Barnett Shale may hold up to 30 Tcf of gas.

XTO Energy, also fueled by growing acquisitions in the Barnett play, moved into fourth place in 2004 for statewide production, with 223.2 Bcf. Until last year, XTO had concentrated its gas drilling in East Texas, but since the beginning of 2004, it has purchased some North Texas property from Antero Resources and a private seller, both large leaseholders in the Barnett Shale (see Daily GPI, Jan. 12; Feb. 24, 2004)

Rounding out the top five Texas gas producers for 2004 was perennial leader ExxonMobil, with 195.6 Bcf. EOG Resources Inc. was sixth with 173.8 Bcf. EOG also has been ramping up Barnett Shale production and at the end of the year had 400,000 acres under lease in the play.

El Paso Production Oil & Gas Co. was in seventh place in Texas production, with 144.7 Bcf, followed by Chevron U.S.A. Inc., 144.4 Bcf; BP America Production Co., 125 Bcf; and Chesapeake Operating Co. with 103 Bcf.

©Copyright 2005Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.