Haynesville Shale to bring jobs back to Northwest Louisiana

Natural Gas production in Northwest Louisiana can see an uptick in jobs due to a familiar source — the Haynesville Shale.

An economic and policy research group with LSU predicts over 2,800 jobs will be created in the Shreveport region over the next two years.

Loren C. Scott is the Professor Emeritus of Economics and says a big contributor for those jobs for that will be because of the shale.

“That created an environment up here that was like a gold mining town like in the gold rush days. You couldn’t screw up in Shreveport during that period of time. The problem is that due to the decline in the price of oil, that rig count has dropped from 142 down to at one point it was 16. You had very little activity,” Scott said…

 

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Great Expectations

Don Briggs, President of the Louisiana Oil and Gas Association 

Energy producers across the United States are benefitting greatly from the policies of our President and his cabinet appointments. New lands are being opened up for drilling and exploration purposes. Overly burdensome rules and regulatory hurdles that stifled the growth of our industry are systematically being removed. Red tape that once stalled pipeline infrastructure projects in their tracks is no longer.  The expectation for our oil and gas industry is brighter than it has been in years.

Louisiana, in particular, has benefitted from this optimism and opportunity. Looking solely at the Liquefied Natural Gas (LNG) sector, the headlines are riddled with new multimillion-dollar expansions and projects to come. For example, Venture Global LNG has raised approximately $470 million in total for a planned export facility. Cheniere Energy’s Sabine Pass LNG facility has exported its 100th cargo in April. These are just two of multiple projects and growth in store for Louisiana.

It also seems like a sleeping giant is starting to awaken, the Haynesville Shale. This boost in activity is partly due to the increase in petrochemical plants, LNG, and the infrastructure in place to move shale gas. Haynesville was once thought to be left for dead because of more low-cost shale plays, but that is no longer the case. Shale formations such as the Utica and Marcellus are more cost-efficient to produce, but the shut-in production creates another hurdle and expense for producers. The vast pipeline infrastructure coupled with the ability to move material to the export facilities along the Gulf has led to a resurgence of activity in the Haynesville.

While all the chips seem to be falling in our favor, there are still issues holding back the complete success of the oil and gas industry. For one, the lack of stability in oil pricing. It seems as if we, the United States oil industry, are sitting on the edge of our seats waiting to see whether or not OPEC decides to decrease production. The ongoing threat of North Korea, along with a slew of geopolitical issues, is also affecting the amount of demand for oil. Unfortunately, this geopolitical problem does not show signs of subsiding.

There are hurdles in Louisiana that are severely crippling our industry, especially in South Louisiana. The most significant and harmful issue is the Coastal and Legacy Lawsuits against the oil and gas industry. Many in the industry fear that this will lead to the death of South Louisiana’s oil and gas exploration and production. The indicators of this coming to fruition is becoming more difficult for the naysayers to refute.

The most obvious example is the lack of activity. Right now, there is an average of 43 rigs active in North Louisiana.  In South Louisiana, there are only 3 rigs, and our inland water is down to just 1 active rig. Just this week, the state is down to 24 permits in just four parishes:  17 permits in DeSoto parish, 3 in Bossier, 1 in Caddo, and 3 in Red River parish. All of these parishes are located in the northwest portion, and not one permit was issued in South Louisiana.  Another example of how our legal environment is affecting our oil and gas industry is the fact that at the October 11th State Mineral and Energy Board Meeting, there was no nomination for the October 11, 2017 lease sale. Since I have been a part of this organization, I cannot remember a time when there was no nomination for access to state leases for mineral production.

As we look to the future of Louisiana and its oil and gas industry, it is important to realize that they go both hand in hand. When the oil and gas industry is active across the state, creating valuable jobs and vital tax revenue, Louisiana succeeds. We must put an end to our self-inflicted wounds and get Louisiana back on track. The opportunity for Louisiana to ends its financial woes is there for the taking.

 




U.S. looking to Japan for help in boosting LNG exports to Asia

The U.S. is keen to work with Japan in expanding exports of U.S. liquefied natural gas in Asia, a move that bodes well for export terminals being developed along the Louisiana and Texas coasts.

Many of the fastest growing markets in the Asian-Pacific region lack terminals and other infrastructure needed to increase their LNG imports.

Federally approved facilities under construction in Louisiana are Cheniere Energy’s Sabine Pass, which already has some units operating and exporting LNG, and Sempra-Cameron LNG. Approved but not under construction are Southern Union-Lake Charles LNG and Magnolia LNG. Proposed projects with pending applications are Venture Global Calcasieu Pass, Venture Gobal LNG in Plaquemines Parish and Driftwood LNG in Calcasieu Parish. In prefiling are Fourchon LNG LLC and G2 LNG…

 

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Houston firm invests in Scott tech company

Houston-based equity fund Pelican Energy Partners has made “a significant investment” in Gordon Technologies LLC, an oil and gas industry service company based in Scott. Pelican did not disclose the amount it invested.

Gordon Technologies offers “measurement-while-drilling” technology. The technology provides drillers with precise, real-time data about wellbore position, drill bit information and directional data.

Founder Terry Frith has more than 30 years of experience with measurement-while-drilling technology and holds several key patents in the sector, according to Pelican Energy. Frith has also developed or helped develop eight measurement-while-drilling systems during his career…

 

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Don’t Look Now, But The Haynesville Shale Is Coming Back To Life

One of the early centers of American shale drilling is roaring back to life, boosted by a building boom of petrochemical plants, fertilizer factories and gas-export terminals along the Gulf Coast.

The Haynesville Shale, a giant natural-gas field in northwest Louisiana, was one of fracking’s hottest spots a decade ago. But it fizzled out about five years ago as gas prices plunged and drillers focused on finding oil next door in Texas. Now, the Haynesville is being reborn as companies with longstanding positions in the area, such as Chesapeake Energy Corp., and newcomers seeking opportunity rush back in and drill again.

Gas production from the Haynesville has risen more than 20% so far this year, to more than 7 billion cubic feet a day from less than 6 billion in January, according to the U.S. Energy Department. The number of rigs active in northern Louisiana parishes and the Texas portion of the field has more than tripled in the past year to 44, according to oil field services company Baker Hughes Inc…

 

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An Old Fracking Hot Spot Makes a Comeback

One of the early centers of American shale drilling is roaring back to life, boosted by a building boom of petrochemical plants, fertilizer factories and gas-export terminals along the Gulf Coast.

The Haynesville Shale, a giant natural-gas field in northwest Louisiana, was one of fracking’s hottest spots a decade ago. But it fizzled out about five years ago as gas prices plunged and drillers focused on finding oil next door in Texas. Now, the Haynesville is being reborn as companies with longstanding positions in the area, such as Chesapeake Energy Corp., and newcomers seeking opportunity rush back in and drill again.

Gas production from the Haynesville has risen more than 20% so far this year, to more than 7 billion cubic feet a day from less than 6 billion in January, according to the U.S. Energy Department. The number of rigs active in northern Louisiana parishes and the Texas portion of the field has more than tripled in the past year to 44, according to oil field services company Baker Hughes Inc…

 

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Venture Global LNG Announces Successful Close of $108.6 Million Private Placement: Aggregate Funding Total Reaches $470 Million

Venture Global LNG, Inc. announces that it has raised additional capital of approximately $108.6 million, marking its seventh round of equity investment. This Reg. D private placement brings the company’s aggregate funding total to $470 million.

The transaction proceeds will fund Venture Global LNG’s continued development activities for its proposed LNG export facilities in Louisiana. The company is developing both the 10 MTPA Calcasieu Pass facility on the Gulf of Mexico and the 20 MTPA Plaquemines LNG facility in Plaquemines Parish using a highly efficient, mid-scale liquefaction technology.

In response to the capital raise, Co-CEO Bob Pender stated, “Following the recent execution of our binding 20-year Sales and Purchase Agreement (“SPA”) with Edison (part of the EDF Group), as well as our previous binding 20-year SPA with Shell North America LNG, this private placement gives our buyers high confidence in our ability to deliver the lowest cost LNG from North America to the global market”…

 

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Oil and gas wells an infrequent but ongoing presence in Lake Pontchartrain

For the most part, a more than two-decade-old moratorium on new oil and gas drilling in Lake Pontchartrain has left pre-existing production — which was grandfathered in — out of sight and out of mind for residents across the region.

 

But some industry officials — including Gifford Briggs, acting president of the Louisiana Oil and Gas Association — contend that drilling in the lake offers advantages over the costlier deepwater Gulf of Mexico.

“If you’re in the middle of Lake Pontchartrain, a lot of those challenges aren’t there, so you’re going to be able to look at producing the resources at a lower cost,” Briggs said. “Because of that, it’s more economical”…

 

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Lake Pontchartrain oil rig explosion: Officials continue search for missing worker, brace to clean up possible spill

Officials were prepared to search through the night Sunday for one person reported missing following an oil platform explosion in Lake Pontchartrain northwest of Kenner that sent seven others to the hospital.

Five of the wounded were taken to New Orleans’ University Medical Center in critical condition for treatment of blast and burn injuries, with the remaining two going to East Jefferson General Hospital in Metairie in stable condition, according to authorities.

There were reports that the blast could be heard and felt in homes as far away as St. James Parish…

 

 

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In Louisiana treasurer’s race, these 2 candidates headed to runoff

Democrat Derrick Edwards and Republican John Schroder made the runoff Saturday in the race for state treasurer.

Republican Angele Davis, of Baton Rouge, placed third, with 99 percent of the precincts reporting.

Edwards, a New Orleans attorney, was expected to secure a spot in the runoff as the sole Democrat in the race despite raising little money and rarely campaigning. He pulled down about 31 percent of the vote tallied…

 

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