American Oil and Gas Reporter - March 2016 - 54

TABLE 1
Current and Future Production to Supply
FERC-Approved Gulf Coast LNG Plants
Current Dry Gas

Contribution to

Production (Bcf/d)

Gulf Coast LNG Plants

Barnett

4.4

25%

2.08

Haynesville

3.9

22%

1.83

Eagle Ford

5.1

29%

2.43

Woodford

1.5

0.71

Fayetteville

2.8

15%

1.32

TOTAL

17.6

Play

New production to supply
Gulf Coast LNG plants (Bcf/d)

8.36

TABLE 2
Plays Ranked by Well Cost per EUR
Play
Fayetteville
Haynesville
Barnett
Marcellus
Eagle Ford
Woodford

Well cost ($MM)
2.60
7.50
3.60
6.40
6.25
6.70

EUR (Bcf)
2.64
7.33
3.12
5.53
3.67
2.50

and Marcellus production delegated to
the lone East Coast plant.
The impact of Gulf Coast LNG exports
on regional shale plays was analyzed
based on a weighted average to get the
contribution percentage of the 8.36 Bcf/d

Cost per EUR ($MM/Bcf)
0.99
1.02
1.15
1.16
1.70
2.68

of gas production needed to maintain full
LNG export capacity of all Gulf Coast
trains. Table 1 shows each play's contribution.
Assuming that the production to supply
Gulf Coast trains would be incremental

to existing production, and sharing the
load between plays on the basis of their
production proportions, a total of 144
rigs would be required to facilitate starting
LNG exports across all five plays-roughly
100 more rigs than were working in these
basins at the end of 2015.
Supplying The Load
Based on recent gas production by
Gulf Coast shale basins, a weighted average analysis was performed to determine
the total amount of gas needed to supply
the FERC-approved Gulf Coast LNG export volume of 8.36 Bcf/d, with each gas
shale basins taking on a load equivalent
to its weighted average based on production when summed with the other four
shale plays in the South-Central United
States.
Considering each basin individually,
the Barnett is tasked with supplying a
significant portion of the load, at nearly
25 percent of Gulf Coast LNG output.
This would require 46 rigs to drill 1,652
laterals in the first year. Even after 10
years, eight rigs would have to drill 260
wells annually. The Haynesville would
have to deliver less gas than the Barnett,
but 25 rigs would still be required at
startup to drill 296 wells. Ten years later,

JASON D.
BAIHLY

Jason D. Baihly is refracturing integrated project manager at Schlumberger. He leads all aspects of refracturing, including candidate recognition,
treatment design, risk mitigation, engineering, economic analysis, production forecasting, real-time diagnostics,
and post-treatment production modeling. He joined the company in 2003
as a production/stimulation engineer,
and subsequently served as subsurface
manager, multistage stimulation manager, and unconventional resources
team lead in the Marcellus, Woodford,
Haynesville, Bakken, Eagle Ford and
other shale plays. He holds a B.S. in
civil engineering from the South Dakota
School of Mines & Technology and
an M.S. in management in oil and gas
from Heriot-Watt University.
54 THE AMERICAN OIL & GAS REPORTER

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American Oil and Gas Reporter - March 2016

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