Louisiana Department of Natural Resources Perspective on Energy Issues Amite Chamber of Commerce DNR Secretary Scott A. Angelle February 8, 2012 1
Oil and Gas Prices Decoupling 2
Price Dynamics Changing Faster Historic Pricing Ratio: Oil vs Natural Gas 3
Shale Plays in Lower 48 States 4
Domestic Gas Production/Consumption Trillion Cubic Feet Per Year 26.5 25.5 24.46 24.5 23.77 23.33 23.5 23.27 23.02 23.1 22.91 23.7 22.5 22.27 22.4 22.01 21.69 22.4 21.5 22.23 21.64 20.57 Gap Filled with Imports 21.11 20.5…
Production Growth Rate 3X Consumption Growth Rate 6
2011 Natural Gas Production Louisiana total U.S. total 2.49 tcf from 19,845 wells 23 tcf from 480,000+ wells Haynesville only Shale only approx. 1.7 tcf from 1,805 wells 7 tcf from less than 40,000 wells .78 tcf 1.7 tcf…
Haynesville Shale Production Decline 25 235535 235919 Avg. Estimated IP: 11.42 mmcf/d 236110 236237 Avg. First Month Rate: 9.23 mmcf/d 236242 237022 20 237078 237111 Avg. First Year Decline: 81.5% 237289 237384 Average Daily Gas…
Petrochem on the ropes: 2008-2009 Ga. Gulf cuts 100 at La. plant The Advocate June 6, 2009 Before Wednesday's announcement by Dow, the Louisiana Chemical Association anticipated losing about 1,000 chemical jobs in the next…
Shale Natural Gas Has Brought on Louisiana Renaissance Plants, oil work to boost BR jobs Natural gas prices boon to La. October 6, 2011 December 16, 2011 The new natural gas reality translates into billions of dollars in new…
Gas-to-Liquids Opportunity Sasol proposed Gas-To-Liquids plant in Calcasieu Parish Potential 10-billion direct investment and 800-plus direct jobs that are associated with it Designed to produce highway-grade diesel fuel Sasol…
Northwest Southwest Global Expressway Cheniere Sabine Pass Sempra Cameron LNG BG Lake Charles Export 15
Fuel prices in your Fuel prices backyard somewhere else 16
Louisianas New Energy Map 17
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TUSCALOOSA MARINE SHALE 250 (+/-) feet thick Spread across Louisiana and much of Gulf coast 11,000 (+/-) feet deep in the Amite area Primarily oil-producing play First Louisiana TMS wells drilled in 1970s Older conventional…
Texas Eagle Ford Shale Decline Curve 40 percent well total production in first 5 years 23
TMS Promising TMS Definite Issues to watch 24
DNR REGULATES O/G Operations, Water Resources and E&P Waste Disposal WATER RESOURCES MANAGEMENT -water well permitting and inspections -aquifer evaluation -licensing of water well drillers -requirements of users to report and monitor…
Well Construction rules protect water Construction rules require protection of drinking water and isolation of productive zones. Multiple casing strings Minimum setting depth Cement requirements 10 in. Surface Pressure…
Louisiana Fracturing Fluid Rule DNR Office of Conservation Adopts New Regulation for Hydraulic Fracture Operations in Louisiana Thursday, October 20, 2011 Today, the Louisiana Department of Natural Resources (DNR) Office of Conservation…