Enverus: Haynesville Has 12.5 Years of Sub-$3 NatGas Inventory

Enverus forecasts that the time left to capitalize on the Haynesville's inventory will shorten by another two years when taking into account a boom in LNG demand.


Operators in the Haynesville Shale have less than 13 years of sub-$3 per 1,000 cf of natural gas inventory, according to a study released by analytical firm Enverus on Nov. 19.

The timeline shortens by two years once LNG demand ramps up, the report says.

Enverus Intelligence Research (EIR) created the report, including projected value of developing plays in the western Haynesville.

鈥淲e estimate the Haynesville has 12.5 years of sub-$3.00/Mcf inventory at last year鈥檚 turn-in-line cadence,鈥� said Jimmy McNamara, EIR principal analyst, in an announcement.

The time drops to 10.5 years when the company considers boosting the Haynesville natural gas supply to 2 Bcf/d to keep up with estimated oncoming LNG demand.

In recent years, analysts have focused on the Haynesville supply as a key to determining future gas market trends nationwide, thanks to its closeness to the concentration of LNG liquefication and export facilities along the U.S. Gulf Coast.

The Haynesville is expected to be one of the primary sources of natural gas supply for LNG producers as demand is set to more than double by 2030. The length of time the region鈥檚 gas wells remain economically viable directly ties into production decisions in other U.S. basins.

A few of the region鈥檚 operators have access to 15 years or more of sub-$3 per 1,000 cf, Enverus said, and are therefore in the best position for sustainable growth over the long term.

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This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you鈥檙e experiencing any technical problems, please contact our customer care team.

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Enverus: Haynesville Has 12.5 Years of Sub-$3 NatGas Inventory

Enverus forecasts that the time left to capitalize on the Haynesville's inventory will shorten by another two years when taking into account a boom in LNG demand.


Operators in the Haynesville Shale have less than 13 years of sub-$3 per 1,000 cf of natural gas inventory, according to a study released by analytical firm Enverus on Nov. 19.

The timeline shortens by two years once LNG demand ramps up, the report says.

Enverus Intelligence Research (EIR) created the report, including projected value of developing plays in the western Haynesville.

“We estimate the Haynesville has 12.5 years of sub-$3.00/Mcf inventory at last year’s turn-in-line cadence,” said Jimmy McNamara, EIR principal analyst, in an announcement.

The time drops to 10.5 years when the company considers boosting the Haynesville natural gas supply to 2 Bcf/d to keep up with estimated oncoming LNG demand.

In recent years, analysts have focused on the Haynesville supply as a key to determining future gas market trends nationwide, thanks to its closeness to the concentration of LNG liquefication and export facilities along the U.S. Gulf Coast.

The Haynesville is expected to be one of the primary sources of natural gas supply for LNG producers as demand is set to more than double by 2030. The length of time the region’s gas wells remain economically viable directly ties into production decisions in other U.S. basins.

A few of the region’s operators have access to 15 years or more of sub-$3 per 1,000 cf, Enverus said, and are therefore in the best position for sustainable growth over the long term.

Comments

Add new comment

This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.