{"id":259160,"date":"2023-05-26T11:03:07","date_gmt":"2023-05-26T09:03:07","guid":{"rendered":"https:\/\/climatescience.press\/?p=259160"},"modified":"2023-05-26T11:03:27","modified_gmt":"2023-05-26T09:03:27","slug":"haynesville-natural-gas-production-sets-new-record-again","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=259160","title":{"rendered":"Haynesville Natural Gas Production Sets New Record\u2026 Again"},"content":{"rendered":"\n
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From Watts Up With That?<\/a><\/p>\n\n\n\n

Featured image from Midwest Capital Advisors<\/a><\/p>\n\n\n\n

Guest \u201cD\u00e9j\u00e0 vu all over again\u201d by David Middleton<\/p>\n\n\n\n

From the US Energy Information Administration:<\/p>\n\n\n\n

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MAY 3, 2023<\/p>\n<\/blockquote>\n\n\n\n

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Data source: <\/strong>Enverus, state administrative data<\/p>\n\n\n\n

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Dry natural gas production<\/a>\u00a0from the Haynesville\u00a0shale play<\/a>\u00a0in northeastern Texas and northwestern Louisiana reached new highs in March 2023, averaging 14.5 billion cubic feet per day (Bcf\/d), 10% more than the 2022 annual average of 13.1 Bcf\/d, according to data from Enverus. Haynesville natural gas production currently accounts for about 14% of all U.S. dry natural gas production.<\/p>\n\n\n\n

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Data source: <\/strong>Enverus, state administrative data<\/p>\n\n\n\n

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The Haynesville is the third-largest shale gas-producing play in the United States, behind the Marcellus play in the Appalachian Basin<\/a> and the Permian play<\/a> in Texas and New Mexico. In 2022, dry natural gas production averaged 25.2 Bcf\/d from the Marcellus play (83% of Appalachian Basin production) and 15.4 Bcf\/d from the Permian play. The Marcellus, the Permian, and the Haynesville plays combined account for 55% of U.S. dry natural gas production.<\/p>\n\n\n\n

Natural gas production in the Haynesville increased in 2022, from an average 12.4 Bcf\/d in January to 13.9 Bcf\/d in December. Natural gas prices\u00a0rose relatively steadily<\/a>\u00a0through the summer of 2022 as well. The U.S. benchmark Henry Hub, after reaching a monthly high for the year in August at $8.81 per million British thermal units (MMBtu), declined to average $5.53\/MMBtu in December\u2014still 26% higher than at the start of the year. Drilling costs in the Haynesville tend to be higher because\u00a0natural gas wells in the play are deeper than in other plays<\/a>. As natural gas prices rose in 2022,\u00a0economics for developing new wells<\/a>\u00a0in the Haynesville improved, which led some producers to add more rigs in the play and increase production.<\/p>\n\n\n\n

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Data source: <\/strong>Thompson Reuters pricing data and Baker Hughes Company weekly rig count data<\/p>\n\n\n\n

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The rise in active natural gas-directed rigs in the Haynesville in 2022, as reported by Baker Hughes<\/a>, followed rising natural gas prices. In the Haynesville, an average of 65 rigs were in operation in 2022, a 43% increase compared with 2021. In the first three months of 2023, as natural gas prices fell, the number of active rigs in the Haynesville plateaued at about 68 rigs.<\/p>\n\n\n\n

Pipeline takeaway capacity out of the Haynesville is currently estimated to be around 16 Bcf\/d, according to S&P Global Commodity Insights. The Enterprise Products Partners\u2019 Gillis Lateral pipeline and the associated expansion of the Acadian Haynesville Extension, which both move natural gas from the Haynesville to demand centers and liquefied natural gas terminals along the U.S. Gulf Coast, were the most recent pipeline projects to enter service<\/a> (December 2021) in the region.<\/p>\n\n\n\n

In addition, three new pipeline projects, if completed on time, will add 5.0 Bcf\/d of takeaway capacity out of the Haynesville by the end of 2024:<\/p>\n\n\n\n