The Haynesville Shale Formation is a rich natural gas field and it is attracting many oil companies.
Haynesville Shale gas wells are being drilled in Northwestern Louisiana, and East Texas. .
The estimated size of the Haynesville Shale natural gas field is expanding. Reserve estimates for the field range to 100 trillion cubic feet The Haynesville field could become the largest natural gas field in the U.S. (The Marcellus Shale natural gas field will challenge that statement!).
In any event, the Haynesville Shale Formation gas field is massive!
Although The Louisiana parishes most blessed by the Haynesville Shale strike are located in northwest Louisiana, it is likely that other parishes will join the action as the gas field is expanded by additional drilling.
It should be noted that, as the Haynesville Formation extends to the north (towards Arkansas), the formation appears to become more sandy. This sand may contain oil and natural gas but is not considered as rich as the shale formation to the south. Extensions of the Haynesville Formation westward into east Texas. have,however, encountered rich natural gas fields.
The truth is the boundaries of the Haynesville Shale Formation are not yet known for sure!
A decade or so ago, the oil industry companies had little use for shale formations. Now, with newly developed drilling technology, shale formations, such as the Haynesville, are being eagerly sought!
Shale Formation Drilling
Up until recent years, vertical wells were the conventional way to drill and produce both natural gas and oil. With the discovery that the dense shale formations contain large quantities of natural gas and that the natural gas can be recovered efficiently using horizontal drilling, a substantial number of shale formations throughout the U.S. were made available for recovery of natural gas. The use of horizontal drilling has become the norm for developing shale formation gas reservoirs.
The development of the huge Haynesville Shale natural gas field (and other shale oil & gas fields) has been made possible due to recent major advances in drilling techniques.
Horizontal drilling is becoming the norm for the Haynesville Shale Formation. The shale formation is located about two miles below the surface so vertical drilling is used to reach the shale formation and then horizontal drilling is used to drill along the shale formation for a mile or more. The horizontal portion of the shale formation is then fractured (fracked) using huge quantities of water and certain chemicals. Once fracked open, proppants are generally used to hold the formation open so that the natural gas can flow out of the formation pores. The fact that the Haynesville shale is an amazing 300 feet thick helps with the natural gas recovery. Three hundred feet of shale can contain a lot of natural gas.
All-in-all, this is an enormously rich natural gas field and modern horizontal drilling and fraccing techniques make it easy to produce.
A number of oil companies are aggressively developing the Haynesville Shale Formation:
Chesapeake Energy, one of the nation's largest natural gas producers, is leading the way in leasing land in the Haynesville Shale. Chesapeake has over 500,000 acres under lease. Chesapeake has stated that this natural gas field could have a larger impact on the company bottom line than any oil or gas field with which it has been involved.
Chesapeake has also been aggressive in forming joint ventures with other oil firms for the purpose of developing the Haynesville field. .
Petrohawk Energy (now merged with BHP Billiton) has also been very aggressive in leasing land in the Haynesville.
Petrohawk Energy and Mainland Resources have partnered on some Haynesville Shale projects
Still another company - EnCana Oil & Gas - is jumping in with both feet and is having success in its drilling program as well as in its leasing program.
Three other power players in shale formation production (oil & gas) - XTO Energy (recently merged with EXXON), EOG Resources, & Devon Energy - have also moved into the Haynesville Shale play.
A more complete listing of the oil and gas companies that are getting involved in the Haynesville Shale follows::
Chesapeake Energy (CHK)
EnCana Oil & Gas (ECA)
BHP Billiton (Merged with Petrohawk)
KCS Resources - Merged with Petrohawk, above
EOG Resources (EOG)
XTO Energy - Recently merged with EXXON which makes EXXON the leading natural gas producer in the country.
Hunt Petroleum Corporation - Merged with XTO
Devon Energy (DVN)
EXCO Resources (XCO)
Mainland Resources (MNLU.OB)
Forest Oil Co. (FST)
Plains Exploration & Production (PXP)
El Paso E & P (EP)
Cabot Oil & Gas Co. (COG)
Cubic Energy (QBC)
St. Mary Land & Exploration (SM)
Continental Resources (CLR)
Goodrich Petroleum Co.(GDP)
Encore Operating (EAC)
Comstock Oil & Gas (CRK)
GMX Resources (GMXR)
Dynamic Resources (DYRFF)
Live Oak Energy
Pinnacle Operating Co.
Cherokee Horn Production,
J-W Operating Co.
Will-Drill Production Co.
Petrochem Operating Co.
The rush is now on and numerous other oil companies will be entering the leasing/drilling activity in the Haynesville Shale.
In addition to the lease bonuses being paid to local landowners, the Haynesville Shale natural gas strike is having a great effect on the Shreveport - Bossier area. First of all, the area is now swarming with land agents active in leasing the various various properties; Second, rig operating personnel are arriving as wells are drilled; and, third, pipeline and other facilities for treating and transporting the natural gas are being constructed thereby providing new jobs!
As described above, the immediate Shreveport - Bossier area and surrounding parishes are benefiting hugely from the Haynesville Shale development. Unfortunately, I don't see Louisiana, as a whole benefiting to the same extent. I think they are missing a great opportunity to jump to the front of the energy crisis fight and establish Louisiana as the kingpin of the natural gas industry. More specifically, I believe Louisiana should strive to develop a strong LNG exporting business. Japan and numerous other natural gas-poor nations around the globe would be more than happy to import Louisiana (Haynesville) natural gas.
This LNG exporting concept is covered in more detail in LNG Exporting.
Disclosure: My Personal Stake in the Haynesville Shale. I was recently pleased to learn that I have a stake in the Haynesville natural gas field. I am from Shreveport in Caddo Parish and my father once owned a small company with about 50 or so acres in adjacent Bossier Parish on the banks of the Red River. Bossier Parish expropriated the land for a freeway. Since, the expropriation only included surface rights, the mineral rights remained in the family's possession. The family has leased the mineral rights.
A decade ago, oil and gas companies were not particularly pleased to find shale when they were looking for natural gas. How the times have changed! How the technology has changed! Now, everyone is looking for shale! Shale is now considered the mother lode for both natural gas and oil. It is possible that shale formations containing oil and natural gas will rescue us from our dependence on foreign oil and gas./p>
Some of the more famous shale formations are listed below:
Shale Formations Containing Predominantly Natural Gas:
Haynesville Shale - Possibly, the richest natural gas field (250 trillion cubic feet or more) in the U.S. .
Marcellus Shale - This Eastern natural gas field competes with the Haynesville Shale for the no. 1 size spot of shale formations.
Barnett Shale - Texas - Another very rich natural gas field. Almost fully developed.
Fayetteville Shale - Arkansas natural gas. The Chinese are getting involved.
Conesauga Shale - Alabama shale formation....relatively new as far as development.
Antrim Shale - Michigan - Earliest shale formation to go into production.....produced since the 1940s.....9,000 wells.
Woodford Shale - Oklahoma shale formation
Pearsall Shale - South Texas shale formation
New Albany Shale
Eagle Ford Shale - Texas shale formation containing both oil and natural gas
Bakken Shale - Who said that North Dakota was not an oil state? The Bakken shale formation has one of the richest accumulations of high-quality oil in the U.S.
Some of the above shale formations will be producing natural gas and oil at such prolific rates that pipeline capacities in the formation areas will be exceeded.
1. Bakken Shale. Possibly, one of the largest oil fields in the world. And, it is a shale formation similar to the Haynesville Shale formation.
2. Oil & Energy Company Stocks. Oil company stock investments reviewed include large and small oil companies, oil field services companies, and alternative energy companies.
3. Bakken Oil Companies. One of the largest shale oil fields in the world. And, the Bakken Oil Companies are very profitable..
The Haynesville Shale Formation natural gas strike in northwest Louisiana is huge. The twin cities of Shreveport and Bossier are being revitalized by the Haynesville Shale gas field development.