In response to weak commodity prices Australia’s BHP Billiton Ltd. is dialing back operations in U.S. shale plays, with plans to cut its operated rig count to 16 from 26 by the end of June, a nearly 40% reduction.
Articles from Haynesville Shale
An unprecedented level of uncertainty exists for North America’s upstream sector this year, but upside exists for operators to trim service costs, high grade their portfolios and improve efficiencies, according to Wood Mackenzie Ltd.
Azure Midstream Energy LLC and Marlin Midstream Partners LP have agreed to transactions that would create one of the largest gathering and processing systems in the Haynesville Shale and horizontal Cotton Valley plays in East Texas and northern Louisiana.
Production from the nation’s seven most prolific shale and tight oil regions continues to surge ever higher and is expected to reach 45.44 Bcf/d of natural gas and 5.52 b/d of oil next month, according to the Energy Information Administration (EIA).
Shale oil helped pull Texas out of the 2008-2009 national recession more quickly than other parts of the country, but during the 2016-2017 biennium, revenue from oil and gas taxes will be making a smaller contribution to state coffers than during the current biennium, according to the comptroller’s latest estimates.
Texas oil and gas interests begin a new legislative session on Tuesday following a year that saw growing resistance to fracking in some corners of the state and heightened citizen awareness of drilling and pipelines. But industry efforts to assuage citizen concerns — not to mention much-weakened commodity prices — could give oil and gas a relatively easy time of it in Austin this time around.
Frisco, TX-based Comstock Resources Inc. next year will turn away from the Eagle Ford Shale and Tuscaloosa Marine Shale (TMS) and spend more in the dry gas-rich Haynesville as it believes “improved completion technology, including longer laterals, will provide strong returns on drilling projects at current natural gas prices.”
Big Four Shale Gas Plays Show Decline — Not Plateau — After 2020, Say University of Texas Researchers
The U.S. Energy Information Administration (EIA) and a bevy of independent analysts have predicted domestic natural gas production will climb rapidly over the long-term because of booming unconventional gas growth. However, the University of Texas at Austin (UT) is predicting production from the biggest shale gas plays — Marcellus, Barnett, Fayetteville and Haynesville — will peak by 2020 and decline thereafter.
U.S. natural gas proved reserves increased nearly 10% and reached a record 354 Tcf in 2013, according to the U.S. Energy Information Administration (EIA). Meanwhile, North Dakota’s crude oil and lease condensate proved reserves surpassed those of the federal Gulf of Mexico (GOM), ranking it second only to Texas among U.S. states.
A subsidiary of J-W Energy Co., a privately-held exploration and production (E&P) company based in Dallas, said it has acquired oil and natural gas properties in northern Louisiana from Australia’s BHP Billiton Ltd., a move that will increase its production totals and proven reserves.