Upstream Online
Haynesville Fire Danger Remains High

Friday, September 09, 2011

Bentek said in a market alert the fires could threaten the Haynesville Shale, one of the largest natural gas shale plays in the United States, producing just over 5 billion cubic feet per day, Reuters reported.

A sample of production receipts from East Texas and Haynesville had not yet shown a distinct decline in production that could be attributable to the fires, but some of the fires have erupted around the perimeter of Haynesville shale counties, raising concerns about safety and disruptions, the report noted.

The fires had, however, shown an impact on demand.

"Over the last three days, evacuations and fire-related damage in Texas have led to nearly 1 Bcf total demand loss," Reuters quoted the report as saying.

Bentek expects demand recovery to be gradual.

"Texas has experienced the largest fire event of the three states, with a total of 26 large fires burning and nearly 114,000 acres burned as of September 8. Forecasts for fire danger remain high in the majority of the East Texas region," the report said.

Bentek noted Louisiana's state department of natural resources last week issued an advisory to oil and gas operators in the state to monitor conditions closely and take necessary steps, including shutting in wells, production facilities and pipelines as needed.

To access a complete copy of this article, please visit