The U.S. Department of Energy said a resurgence in activity has sent natural gas production in Haynesville in east Texas and Louisiana to record levels. Haynesville was producing a record high of 10.5 billion cubic feet of natural gas per day earlier this month to surpass the 2011 peak of 10.4 billion cubic feet per day. The agency expects output to increase to 10.75 billion cubic feet per day in May.
Moody’s Investors Service said, “(Haynesville) is now experiencing a resurgence of activity as the economics of production have improved… Capital investment in the Haynesville is likely to continue over the near term as producers benefit from increasing Gulf Coast demand.” Companies such as Oklahoma City-based Chesapeake Energy are producing more with longer horizontal wells and much larger volumes of sand and water in hydraulic facturing to free more gas from shale rock.
Haynesville was the nation’s leading natural gas source until 2012 when it was surpassed by Appalachia, and Permian Basin also now tops Haynesville.