Jims, have same thoughts re natgas.
This from the latest CHK presentation. <<Please also remember that the decline rate from the first month of Barnett well until its twelfth month is about 65% and to its twenty-fourth month, it's almost 80%. So yes, we believe Barnett
gas production will steadily increase over time, but depletion rates, pipeline constraints and urban drilling issues are likely to keep those incremental volume gains much more modest than most observers are predicting,>>
From article re: haynesville <<BATON ROUGE -- Producing natural gas from the Haynesville Shale is not as simple as drilling a hole in the ground, says Don Briggs, head of the Louisiana Oil and Gas Association. Unlike most places, the gas is not trapped in reservoirs. It's in small vertical fissures in the horizontal bands of shale that have to be fractured by intense water pressure pumped 12,000 feet underground.
When the gas is in a pool big enough to remove, "we do not have today the infrastructure in north Louisiana to take that gas out" because of an insufficient pipeline system to handle it, Briggs told the Baton Rouge Press Club on Monday. Roads in the largely rural area also are a problem.
All this hype and there are only 78 wells permitted to drill and only six are producing," Briggs said. Another three wells are drilled and ready to start production, and he predicts 100 will have permits and be ready to drill by the end of the year. Double that number will be permitted by 2010.>>
shreveporttimes.com
There is a big bump now, but it does seem that the depletion rate hasn't been factored in.
Will continue on next post. |
