After Drop in Activity, Haynesville Shale Sees Resurgence

Source: Cheniere Energy.
Opened in 2016, Cheniere Energy’s Sabine Pass LNG terminal is the first shale gas export terminal built along the coast of the US Gulf of Mexico. Sabine Pass is one of several LNG terminals being developed to take advantage of the increased natural gas production from the Haynesville Shale.

What was once old is now new again in US natural gas production. Once a crown jewel of shale in the US, the Haynesville has seen a resurgence in activity after a steady drop. Now, as natural gas consumption increases and the oil price remains low, companies are taking advantage of a potentially valuable opportunity in the area.

Located in east Texas and northern Louisiana (Fig. 1) the Haynesville was the largest US producer of shale gas. In November 2011, it averaged a record high production of 10.4 Bcf/D—but as natural gas prices decreased in the years leading to the oil price downturn, other plays in the Appalachian region of the US such as the Marcellus and the Utica began to surpass it in production. By 2015, shale gas production in relatively liquids-rich areas such as the Eagle Ford and the Permian were also producing more than the Haynesville.

The demise of the Haynesville appeared to be short-lived, though. In the past 18 months, the US Energy Information Administration (EIA) noted significant increases in drilling activity and well production rates, which have raised overall natural gas production in the region. Natural gas production reached 6.9 Bcf/D in September after remaining near 6.0 Bcf/D on average for the past 3 years.

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After Drop in Activity, Haynesville Shale Sees Resurgence

Stephen Whitfield, Senior Staff Writer

14 November 2017

Volume: 69 | Issue: 12


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