Natural gas is enjoying a spectacular moment as prices inch closer to the $4 mark–and, boy, are we in our element. Call it a celestial event of sorts when all the planets perfectly align, particularly in the Haynesville gas basin. The Reese Energy Consulting team is all hands on deck right now for our Haynesville clients, who continue to rev up drilling and well completions there to satisfy LNG’s appetite on the Gulf Coast. Let’s review this Haynesville constellation: Gas production this month surpassed 13 BCFD vs 11 BCFD last July. Feed gas demand from the Gulf’s four LNG terminals now averages 9.35 BCFD—more than three times the 3 BCFD in 2020. Fifty well completions and 99 new wells were drilled in May and June. The rig count is close to doubling from 2020—now at 55 vs 31 last May. On the midstream side, expanded pipeline infrastructure now offers more producer access to premium markets, enabling Haynesville production to grow unconstrained to about 14.3 BCFD which it’s expected to reach by year end. A starry turnabout to be sure.
What do you think? Learn more about REC and our natural gas marketing and contract audit expertise at www.ReeseEnergyConsulting.com.