After a Slowdown, Natural Gas Production Poised to Recover in Louisiana
(PRWEB) June 25, 2014 -- Natural gas production could be making a comeback in some parts of Louisiana, which is a much needed development following a period of disappointing setbacks in the industry.
The discovery of the Haynesville Shale ignited a surge in local commercial development and a boon to businesses associated with the oil and gas industry, but the immediate spark has since died down, much to the chagrin of business owners who relied on production to fuel their economic viability. After a number of people became rich in 2008 around the Shreveport, Louisiana region, production has died down. It peaked at 7.2 billion cubic feet per day in November 2011 but as of 2013 was only producing 6.2 billion cubic feet per day.
"It got pretty bad. It got pretty hard to pay all the bills. But I was going to do whatever I could to keep the doors open," said Rebecca McDaniel, owner of Cafe 171 in Mansfield, in a conversation with the Shreveport Times. "We had a wonderful business. Now it's not wonderful. It's so-so right now."
But even if producers operating in the Haynesville Shale are struggling, the state of the industry in Louisiana is not entirely desolate. For example, South Louisiana's petrochemical industry is booming, according to the news source. This is significant because these facilities require natural gas, so demand is likely to grow locally. Additionally, Shreveport and Bossier City are among a number of cities in the United States that are investing in compressed natural gas to fuel their private and public vehicle fleets. New regulatory measures could potentially force the closing of several coal-fired power plants in favor of those run more efficiently on natural gas.
According to Louisiana State University's Center for Energy Services, businesses in the state will spend approximately $62 billion over the next seven years on natural gas-related expenditures. SB International (SBI) is one of these companies, and its investment into pipe production shows its belief in the future of natural gas production from all parts of the state, including the Haynesville Shale.
"This is a new step in our organization, producing pipe in the U.S.," Satish Gupta, SBI President and CEO, said to the news source. "The concern is, yes, the Haynesville Shale is more focused on natural gas and now the activities are very strong in the oil part of it. We think Haynesville will come back up once the Cheniere Sabine Pass LNG terminal gets going at the end of next year. We are very optimistic and excited that by 2016 onward, Haynesville should start coming back. The demand for oil drilling is very strong, so have got enough demand from the oil side itself to keep us going. When the Haynesville comes on, it will be the icing on the cake. We are not worried about Haynesville, whether it comes or doesn't come, that will only expand our production capacity."
As these developments present opportunities for producers to expand their operations, it's important to capitalize on them by investing in technologies that streamline processes and improve overall operational efficiency. Chem Rock Technologies can help by providing the fracturing chemicals needed to improve production performance, which can yield stronger financial returns and help ensure the future economic viability of the state's natural gas sector.
Renee Ory, Enersciences Holdings, http://www.enersciences.com/, 337-521-2314, [email protected]
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