Friday, January 17, 2014

Comparing the Marcellus to the Haynesville

The last 8 quarters (2012-13) have seen 4,120 Well Spuds in the Marcellus (per the Baker Hughes Well Count Report).  By contrast, the Louisiana Haynesville Shale has a cumulative 2,281 producing wells (per the Louisiana DNR).  After the usual caveats (this doesn't include the much smaller Texas portion of the HVS, and the Marcellus total includes many wells not-yet-producing), the contrast is still stark:

The Haynesville Shale has seen fewer than 150 wells completed this year:

While the Baker Hughes report shows these well spuds by quarter:

It gives a sense of the enormous potential of this formation.  A full comparison must also include the relative recoveries (EUR) for wells in each basin, where the Marcellus outclasses the Haynesville by perhaps a multiple of 2.  And the future should hold more of the same, with the Marcellus Rig Count holding steady for the last six months, meanwhile rig productivity is steadily increasing.