Dry natural gas production from the Haynesville shale play in northeast Texas and northwest Louisiana reached new highs in the second half of 2021, and production remained relatively strong in early 2022.
According to EIA data, natural gas production from Haynesville accounted for approximately 13% of all dry natural gas production in the United States in February 2022.
Haynesville is the third largest shale gas producing area in the United States. The Marcellus play in the Appalachian Basin – primarily in Pennsylvania, West Virginia and Ohio – is the most productive shale gas play in the United States.
In 2021, an average of 31.7 billion cubic feet per day (Bcf/d) of natural gas was produced from the Marcellus play. In the Permian game in Texas and New Mexico, production averaged 12.4 bcf/d in 2021, making it the second most productive game. In total, the Marcellus, Permian and Haynesville represent 52% of US dry natural gas production.
The EIA said natural gas production at Haynesville declined steadily from mid-2012 to 2016 due to its relatively higher cost to produce natural gas compared to other producing areas.
At depths of 10,500 feet to 13,500 feet, Haynesville wells are deeper than other areas, and drilling costs tend to be higher. Years of relatively low natural gas prices meant that it was less economical to drill deeper wells. However, as natural gas prices have risen since mid-2020, producers have an incentive to increase the number of rigs in service and use those rigs to drill deeper wells.
In comparison, the Marcellus wells in the Appalachian Basin are shallower – between 4,000 feet and 8,500 feet.
Producers tend to increase or decrease the number of rigs in service as natural gas prices fluctuate. The number of natural gas rigs in Haynesville has steadily increased since the second half of 2020 and reached an average of 46 rigs in 2021, according to data from Baker Hughes.
The EIA added that producers have added 17 rigs to the Haynesville area since the start of 2022. For the week ending April 8, 64 natural gas rigs were operating in Haynesville, representing 45% natural gas platforms currently operating in the United States. States.
The pipeline’s delivery capacity from Haynesville has also increased in recent years. The additional capacity enables producers to reach industrial demand centers and liquefied natural gas terminals on the US Gulf Coast.
Enterprise Products Partners’ Gillis Lateral pipeline and associated Acadian Haynesville Extension expansion entered service in December 2021.
Prior to this project, Enbridge Midcoast Energy’s CJ Express pipeline entered service in April 2021. These projects added 1.3 Bcf/d of transportation capacity in the Haynesville area, which is currently estimated at 15.9 Bcf /d.
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