Haynesville Shale

Rig count might be the headline number in the shale patch, but when it comes to estimating future production from rig census, increasing rig efficiency and well productivity can make the calculation complicated.

Trace gas emissions and fine particulates are undergoing scrutiny at U.S. onshore production sites over the next two months to determine how air quality is affected.

A Texas House committee hearing of two bills intended to rein in municipalities’ regulation of drilling activities drew a standing-room-only crowd Monday afternoon and impassioned argument from both sides.

The combination of lower capital spending, shut-ins and even a shift to other plays won’t deter natural gas production from escalating in the Appalachian Basin this year, according to data compiled by NGI’s Shale Daily.

If the Baker Hughes Inc. rotary rig count for North America during the March 23-27 week drops by 113, the tally of active rigs will be half of what it was a year ago. The count for the week ending March 20 shows a decline of 136 rigs in North America at 1,209 active, and that’s down 983 from one year ago.

Crude oil production fell in the Eagle Ford and Bakken shales but increased in the Permian Basin in February, while natural gas production accelerated in the Haynesville Shale and isn’t projected to slow down through April, according to drilling productivity reports by the U.S. Energy Information Administration (EIA).

The economics of most U.S. natural gas plays, wet or dry, now are below breakeven levels after suffering as a result of the decline in commodity prices, according to a Barclays Capital analysis. Surprisingly to some perhaps, the Marcellus Shale was not the lowest-cost basin overall.

Bills recently introduced in the Texas legislature intended to thwart local municipality interference with oil and gas drilling have raised the ire of the Texas Municipal League (TML), but an industry trade association said the proposed changes would strengthen the relationship between the state and cities in oil/gas regulation.

Production from the nation’s seven most prolific shale and tight oil plays will slow coming out of the winter months, with natural gas production expected to increase less than 0.5% between March and April, and oil production remaining almost unchanged, according to the Energy Information Administration (EIA).