McClendon defends productivity of shale gas wells; Markey seeks review

Chesapeake Energy Chairman and CEO Aubrey McClendon disputes recent articles in the New York Times that claim energy companies are exaggerating production from shale natural gas wells.

Early productivity numbers and expected ultimate recoveries of such wells have been "steadily improving" and "the majority of these wells will be productive for 30-50 years, or even longer," McClendon wrote in response.

It is also "absurd to conclude that shale gas wells are underperforming while America is awash in natural gas and benefiting from natural gas prices less than half of what they averaged in 2008," he added.

Meanwhile, Rep. Edward Markey (D-Mass.), in response to the articles, asked the Energy Information Administration to review its assessment of the nation's natural gas reserves.

Barnett Shale still produces more than Haynesville, firm says

A Texas-based natural gas consulting firm is challenging the Energy Information Administration's estimate that the Haynesville Shale in Louisiana and Texas is producing more than the Barnett Shale in Texas.

"Our data clearly shows that the Barnett production is still greater than the Haynesville production," said George Lippman, president of Lippman Consulting.

The Barnett Shale averaged 5.52 billion cubic feet per day in February, Lippman Consulting's estimates say, compared with Haynesville daily output of 5.03 billion cubic feet, Lippman said. (Source: Fort Worth Star-Telegram, March 24, 2011)

Natural gas in storage above five-year average as glut continues

Natural gas in storage hit record levels as producers sought to beat the depressed price for the commodity by producing and selling more.
The Energy Information Administration reported on Aug. 6 the injection of 66 bcf of gas into U.S. underground storage in the week ended July 31. That boosted the amount of working gas in storage to 3.09 tcf, up 580 bcf from the year-ago level and 496 bcf above the five-year average.