10. Hydraulic Fracturing
➡First commercial “frac” job
was conducted in 1947
➡States regulate hydraulic
fracturing
➡More than 1 million wells had
been completed using this
method by 1988
➡Estimated that nearly 85% of
wills drilled today are
completed using hydraulic
fracturing
➡Multiple federally funded
studies have shown that there
is no risk associated with
hydraulic fracturing
11. GLOBAL
FRASER INSTITUTE
PETROLEUM SURVEY
• A total of 502
respondents
completed the
survey to evaluate
136 jurisdictions
around the globe
12.
13. NORTH AMERICA THE INVESTMENT
CLIMATE HOT SPOT
• #1 Mississippi
• #5 Texas
• #14 Louisiana
• The Gulf of Mexico
dropped from 11th in
investment
attractiveness this
year to 60th
14.
15. Institute for Energy Research in a recent study -
North America holds the world’s largest combined oil,
coal, and natural gas resources in the world,enough to
fuel our present needs for 250 years.
16. Non CONVENTIONAL ENERGY
➡“It’s the elixir of economic life, providing business
longevity and renewal and ...apparently.....about to turn the US
back into an industrial powerhouse” The Australian.
➡ "This shale gas development is a game-changer of huge
proportions," said Dan DiMicco, chief executive officer of Nucor
Corp
➡ “We are in the midst of a significant global shift as
unconventional energy sources become more attractive to oil
and gas companies” BDO USA
➡ Youngstown Steel & Tube building $650 million Plant in
Youngstown, Ohio all made possible by cheap shale gas from
Pennsylvania
17. BROWN DENSE Louisiana
HAYNESVILLE SHALE
COTTON VALLEY Shale & Ultra
Deep Plays
TUSCALOOSA MARINE SHALE/
EAGLE FORD LA SHALE
WILCOX
ULTRA DEEP FRONTIER
19. Haynesville
Shale
#1 Producing Natural Gas Field in US
$14 Billion Est. Economic Impact in 2012
60,000 Plus Jobs Supported by Shale in 2012
1,700 Plus Producing Wells
2,207 Units as of 12/15/11
20. Since October 2008, more than 1,836 wells have
CLAIBORNE
been completed in the Haynesville
CADDO
Haynesville Shale Gas Play
Haynesville Shale Gas Play
Well Activity Map
Well Activity Map
Caddo-Pine Island Field Producing Well (13)
1 Producing Well (1837)
Permitted Well
Dixie Field Bellevue Field Permitted Well WOC*/Fracturing/ 11 1 " Waiting on Completion/Fracturing/
Dixie Testing/Other Operations (266)
Sentell Field Testing/Other Operations (47)
1 1
Field " 11
Bellevue
BOSSIER
Permitted Well 1 Sentell Field # Permitted Well
* Drilling in Progress (79)
Drilling in Progress (35) 1 " Field Red Chute Bayou 1
"
Permitted Well
Longwood
1 1 ! Permitted Well
Not Drilling (65) 1Field Field Not Drilling (228)
1
Longwood Field 160 Total Wells Permitted
to Haynesville Shale
11 Willow Chute
Field 1 §
¦
¨
20
2410 Total Haynesville Shale Wells
Haughton
220 20 * Waiting on Completion
1 1 1 Shreveport
Field
1 1 Field 1 Sibley
Adopted Haynesville
Adopted Haynesville 1 1 " 111 1 1#* Field
Shale Unit (2207)
Shale Unit (174)
1 Sligo
1 Field
Bossier City 11! # 1 1
Greenwood-Waskom
11
WEBSTER
" *"
Field
1 1 11 1 11
!
!
1
Sligo Field 1 11
1 1
1
11
1 11 1 1 11 11 1 Cedar" 11 1 1 1# 111 1 1 1 "1 "
" 1 * 1 1
111 1 1 Grove
1 Field ! 1 !1 1
1 1 1 # " 1
1Metcalf1 1 1 11 1 " 11 1 1 1 1 Grove111111 1 1 11111 Lake Bistineau 1
* 1 "
20 #
*
Shreveport
11 111 1 11 1 111111 1
! !
111Field111 1 Jamestown
1 1
1 1 Field
!
1 Johnson Branch 111 1 1 "1 ! Field1
Elm
Greenwood-Waskom "
1 11 11 11 1 1 1 1 1 1 11 11# 111 1
" * 1 "
11 1 1 " 1 11 1 "1 ! " Field
"
1
1 11 !1 1 1 1 1 1 11 1
Cedar Grove Field
Field
1 Field 111 1 111 1 "
111 1 1 1 "" "
" 1 1 1
11
1 1 1 11 !1 1 1 1" "" 1 1 "1 1! 1 1 1 1 1 1
" 1 !1 1 Alabama1 11 1 1
Bend 1 1
1 1 111 1 1 1
!
111 1 1 1 1 1
1 " 1 11 1111 1 1 " 1"!!11111 #1 11 1 1! 1 * 1 "
1!
"" Field
11 1 1 11 1
11 1
11 1 1 1 11 11 1 1 1 11111 11 11 1 1 111 1 111 11 1 1 1 1 11111111
1 "
! Swan Lake!
Metcalf Field 1 1 " 1
BIENVILLE
Elm Grove Field
1 1 1 1 1 1# 1 1 1 ! Caspiana
" "
1 1 Field #
*" 1
1 11 1 1 111 1 1 1 " 11 1 Field 1 1#11111 1 1 1" 1 111 1 1 1 11 1 ## 1 111
1
11 " 1 1 1 1 1 11# 1 " " *1 1
* * Woodardville
*
11
1
" """
Johnson Branch Field
1 11 1 1! ! 1 1 1
" " #
*
* 1 1" Field 1
1 1 11# 1"1 1 11 1 1 Kingston11111#11 1 1 11111Lake1 1#!1"1 " 11!111 Madden Branch
1 1 * !!"! * 1 11
11 1 ##1
1 " " * **1
11 !1111 ###
1" # Thorn "1
** 1 "
1"1 #! "1 " 1! 1 1
Field 1
1"
"
1 1 1 !11" 11 1 1 11 1 111 11"*1" 1 1 11 1 1 1 1"!*1
1
! " #"
" ! "*
#
*
"
111 1
Field
#"" "
*# !
* 1 1# 1 Field 1#11 1 11 1!"!
* 1
1
! 1
111
#
*
*" !! *1
"
!
1 1
1 11 1 1! 1 1"11"1 1 " 1"1! " 1 1
1 " """ " 1 1
11 1 "" !1!! " 1
" 11 "1 " ""!#
"
11
!" 1 1 1 1 !" " 1 "
!
! 1 1
1 11 11 1 11"1!1 11 1 1"
" !!
* " " ! !
! 1 1 1 1 1 1
!
"1 1 !1
"
! 111111!! 1 1 1 11 1 1 1
1" 11111!1"1 1111
1 "111 1" 1 1
" Bethany-Longstreet 1 ! !
!
Swan Lake !
1 111 11 1 111111"" 11 "" 1 " ! !
" !1 !
" 1
11 Field 1 1 1"111!#Holly1111 " 1 1"1 11 1 1 1 #"11 1 1111 11 1 1 11 1
"11 "" "1
1 1 11*11"111 " 111 "
!
Caspiana Field
Field 1 1
# "#
* #*
" * "1" " " " " 11
11 1 1 11
#1 1 1 1 " 11"# 1 1 Bracky Branch
1
11 1 " 111 ! !11111 Field1 1 1 1 "!
*!" *#
"*
*
!" !
" #! 1 1
" 1
1 1 1
! *1 11 "1 1 1 1
11 11 North 1 1 11 1 1 #!! 1 1 # 1 11 1 1 111 1 1 #Field 11111 1 1 1 Ashland
! ! * !"
49 1 1 11 Cane, 1 1 1 *1 1 *
1
1! 1 11 1 1 " 1
" !
1 1
111 1 1 1 " 1 1Grand Field1
1 1 Bower "" 1 1 11 1"1 1
11 1 1 1 11 1
Field
111 1 11 1 1 1 11 111 11 1 " 1 1 1 1 1 1 1 1 # 111 1 1 Martin
Woodardville Field 11Field
1 1
" " " 11
* ! 1
111# " 1 1 1 1
! Field
1 1 1 !1 111 1 Bayou 1 11 1 11 1 Creek Liberty
1! 1
Belle !
Thorn Lake Field
1 11 1
11 1* 1
!1 " 1 1 1 Carroll 1 "
1 1 1 11 1 Red11 Field 1! 11 111 1 1 1 " # Field1 1 1 " !
1 1
"
!
1 11 1
1 "
11 11 1
1 1 1"FieldBayou 1 1 1 1 River-Bull ! 1 1
1 1Canadian! 1 1 Mansfield 11 1 1! * 1
* 1 1 1 11 1 1
1 Field
11 1Logansport 1 111Grand Cane1 1 1 1 1 1 111 11 " 1 1 !1 ! Gahagan 1 1 11 1 1
Bethany-Longstreet Field
11 1 !# 1
"11
111 1 1
!"
" " 11 1 1
11 1 Field1 11 11 1 1 1
" Field 1 " 1
! 11 ! !
11 1 11111 1 Field 1 1 11 1 1 1 1 1 #1 1"1111 1 " !1" ! 1 1
11 1 1 1
Kingston Field !
Holly Field "
"
1 " 1 11
" 1 Field 1
! "1
"
Belle Bower Field Martin Field
1
!
!! 1 " " !
* "
!
1 " "1 1
1 !!! ! 1! !Field 11 Field1 1 Mile Bayou 1 1 1!1 1 1
" !!
! " ! 1!
!
" !
Spider
1 "1 Ten 1
Trenton
#
* 1 1 1#! 1
*! 1 Alpha
"
11 ! " 11 1 1"1 111Field 1
! 1
1 1 11"11 1 11 "
"1 1 " 11 Redoak Lake
1 Field
11 1 1 1 " 1 1
1 1 11
" 1 Lake
1
Chemard1 ! 1Field
RED
"
1 1 1 ! 11 1 1 1 # 1
1! ! 1 11
1 1 1 1 1 1 1 1 1 1 ! Brushy1111 1 1 # ! 1
Red River - Bull Bayou Field * " Field
1 1 "
" "
Bayou
1 1 * 1
!1
11 1 11 ! " 11
1 # Field
§ " 1
¦
¨
11 1 ! "11 1!
* ! " 49
North Grand Cane Field 1 1 1 ! ! Benson 1 1 1 " Grogan
Coushatta 11 1 1 !1! ! Field 1 1 " 11 1 1 1 1 1 Field 11
1 11 1" ! 1 11
"1 1 " # !
1 1 " 1 " !1! 1 !1!! 1 111 1 1 King Hill
RIVER
Logansport Field Mansfield * ! "
1 1
"
Grand Cane Field ! 1
1 1 !" ! 1 ! 1 1 1#Pleasant Hill 1 " 11
" 1 11
! * 1 1
1 1 ""
Field
"
1 !
1 11 ! 1 11 1 1 11 1Field 1 1
1! 1 # "
*
1! 11 1 ! 1 !
1# 1 !# #
**
" San1
1 * 1 111 1"1
1 ! 1
Miguel Creek
1 Converse # # 1# 1 11 # Field
Trenton Field " " "
1 !"" " 1 *
* * !" 1 *
" "
Spider Field 1 "!Field Bayou San Miguel 1 " "#
1 1
" 1!
" "
*"
" " 1
!! ! !" " " Field 1 "
DE SOTO
!! ! 1
11 ! ! " ! ! 1 1
" ! ""
± 1 1 11 1 ! #! !
!
Benson Field
1 1
*
1 1
King Hill Field 11 1
!" !
NATCHITOCHES
1!1 "
0 5 10 !!
Pleasant Hill Field
1 Zwolle
Field !
1
SABINE
Miles
0 5 10 Well data as of 02/02/2012
Well data as of 10/30/08.
NOTE: Data from this map are
NOTE: Data from this map are not to be used for legal purposes.
21. AVERAGE OIL & NATURAL GAS
PRICES 2000 - 2012
Oil Trend 1 Gas
24. Average North LA Rig Activity
2000 - 2012
150
North La Land Rig Activity 135
Trend 1
112.5
98
90
75 68
57 58 57
49
40
37.5 30 29
24 23
0
00 1 2 3 4 5 6 7 8 9 10 11 12
25. Haynesville Shale Local Ordinances
REGULATING: Noise Levels, Hours of Operation, Lighting, Dust, Vibrations, Odors,
Venting, Fencing, Signage, Discharge, Explosives, Debris, High Grass, Trash,
Compressor Stations, Road Use, Seismic Operations
Enacted Oil & Gas Ordinances
City of Shreveport (October 2009)
Caddo Parish (September 2009)
Bossier City (June 2009)
Enacted Road Ordinances
Bienville Parish
Caddo Parish
Bossier Parish
Desoto Parish
Red River Parish
Webster Parish
Vernon Parish
Noise Ordinances – Bossier & Caddo Parishes,
City of Shreveport
Seismic Ordinances – Bossier City & Shreveport
26. value of the severance
tax investment incentive
For every dollar of severance taxes
given up under the horizontal
incentive the state gained $2.94 in
revenues to the treasury.
$1.00 = $2.94
29. Lower Smackover
Brown Dense
Predominately North East Play
Very early stages of development
depths rage from 8,000’ to 10,000’
30. Lower Smackover
Brown Dense
Predominately North East Play
Very early stages of development
depths rage from 8,000’ to 10,000’
Companies in The Dense
Devon
Southwestern Energy
Vision Exploration
34. Tuscaloosa Marine
Shale / Eagle Ford
LA
Amelia
Anadarko Devon Indigo Minerals
Resources
Mid-Western
El Paso Denbury
States
Encana Goodrich Swift
35. Ultra-Deep Frontier
25,000’ - 35,000’
Middle/Lower Miocene - Wilcox - Frio -
Tuscaloosa -
Text
Davy Jones
36. Ultra-Deep Frontier
25,000’ - 35,000’
Middle/Lower Miocene - Wilcox - Frio -
Tuscaloosa -
Text
Davy Jones
37. Ultra-Deep Frontier
25,000’ - 35,000’
Middle/Lower Miocene - Wilcox - Frio -
Tuscaloosa -
COMPANIES IN THE
FRONTIER
McMoRan
PLAINS
Text CHEVRON
Energy XXI
Davy Jones
39. Roy
Culle
n
Clint Murchison
n
hardso
Sid Ric
r d
lia
Hil
C .P.
H.L. Hunt
Editor's Notes
As of January 6th, 68 rigs in N. LA, down from 139 in April 2010.\n\nSome may look at this as a gloomy picture but please look at what ran in 2000 - we are almost triple that now.\n\nNot many of us (Maybe Dickie) were interested back in 1992 when there were (yes) 5 rigs running in N. LA. \n\nFluctuations dictated by market prices... Market is king.\n
\n
Lake Vobegon, Where all the women are strong, all the men are good looking, and all the children are above average." Garrison Kellor\n
\n
Ten years ago we had 60 years supply of natural gas and declining\nToday we have 100 plus years and growing\n
\n
Gone from a 61 year declining supply \nTo a 100 plus year growing supply\n
\n
\n
\n
\n
Mississippi was number 1, Louisiana was 11 or 14\n
\n
The boom in low-cost natural gas obtained from shale is driving investment in plants that use gas for fuel or as a raw material, setting off a race by states to attract such factories and the jobs they create.\nOF COURSE WASHINGTON COULD ALSO BE A GAME CHANGER\n
\n
\n
1,836 PRODUCING WELLS\n2,200 UNITS\n
1. Drilling capital moving to liquids\n2. Drilling to hold leases is mostly over so companies have a choice\n3. US LNG facilities are being converted to export - 2015 - Nat. Gas has been a local commodity\n4. Continued shift from coal power generation to natural gas. Demand from power sources will grow\n5. Transportation fuel\n6. Industrial, petrochemical all are moving ahead with an abundant supply available \n\n
1. Drilling capital moving to liquids\n2. Drilling to hold leases is mostly over so companies have a choice\n3. US LNG facilities are being converted to export - 2015 - Nat. Gas has been a local commodity\n4. Continued shift from coal power generation to natural gas. Demand from power sources will grow\n5. Transportation fuel\n6. Industrial, petrochemical all are moving ahead with an abundant supply available \n\n
1. Drilling capital moving to liquids\n2. Drilling to hold leases is mostly over so companies have a choice\n3. US LNG facilities are being converted to export - 2015 - Nat. Gas has been a local commodity\n4. Continued shift from coal power generation to natural gas. Demand from power sources will grow\n5. Transportation fuel\n6. Industrial, petrochemical all are moving ahead with an abundant supply available \n\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
Lake Vobegon, Where all the women are strong, all the men are good looking, and all the children are above average." Garrison Kellor\n