Economic Benefits of Haynesville Shale could be 'Monstrous' for Louisiana

The Haynesville Shale is being described as one of the richest fields of natural gas ever discovered in Louisiana and possibly in the United States. If it is as viable as several large companies believe, it will bring billions of dollars into the state treasury over the long run.

“The economic impact will be absolutely monstrous if it’s as big as it can be,” said Don Briggs, president of the Louisiana Oil and Gas Association.

Until now, the production of oil and gas in Louisiana has been obtained from the conventional subsurface reservoirs that are located in sandstone or limestone formations. The Haynesville Play is predicated on shale as the subsurface source of natural gas, according to information from M.B. Kumar, Office of Conservation geologist administrator. The shale is a rock formation mainly composed of consolidated clay-sized particles deposited and buried in the north Louisiana geological basin more than 170 million years ago during the geologic Jurassic time. It's characterized by ultra-low permeability in contrast with the conventional sandstone/limestone reservoir rocks that have high permeability.

The shale’s boundaries are still up for interpretation. But the hot zones appear to include all of DeSoto Parish, the mid- to southern regions of Caddo and Bossier parishes, the southern tip of Webster, the western end of Bienville, most of Red River, the upper parts of Sabine and Natchitoches parishes and sections of East Texas.

What if the Haynesville Shale turns out to overshadow the East Texas Barnett Shale, the granddaddy of all natural gas fields? “We don’t know how that will look. It’s going to take a little time,” Briggs said. “However, there’s obviously enough evidence with the preliminary test that certainly has sparked an immense fever of excitement about drilling in the Haynesville Shale, and it could be very big. The economic impact to the northwest part of the state and the state of Louisiana will be very substantial.”

The need for more energy in the United States is behind the push to explore these natural gas fields. Louisiana is a net consumer of natural gas, consuming all of what’s produced in state. “We have a tremendous need for it with all of the petrochemical industry that we have. That’s a power source. … The heart of the natural gas industry flows through all of Louisiana and flows through the rest of the country. Twenty-five percent of all natural gas for the country flows through Louisiana,” Briggs said.

The News Star

Chesapeake Energy announced the find in March. Chesapeake is the largest independent and third-largest overall producer of natural gas in the U.S. Headquartered in Oklahoma City, the company's operations are focused on exploratory and developmental drilling and corporate and property acquisitions in the Mid-Continent, Fort Worth Barnett Shale, Fayetteville Shale, Haynesville Shale, Permian Basin, Delaware Basin, South Texas, Texas Gulf Coast, Ark-La-Tex and Appalachian Basin.

Chesapeake CEO Aubrey McLendon believes that the Haynesville Play is the biggest thing Chesapeake has ever been into, and they are knee-deep in the Barnett Shale in Texas, currently the largest gas field in the country.

Other Sources for information:

My Bossier

Oil & Gas Investor

The Absurd Report

Prime News Wire

Yahoo! Finance

Houston Business Journal

Reuters

Forbes

Fort Worth Business Press

State Revenue Department Information on Natural Gas Severance Tax

The Times Ignores Gerard Bowen, Jr

There was an article in The Times today about Chris Gorman's son You Tubing his dad's campaign for the 4th District Congressional Seat. The article mentioned all the Democratic candidates and all the Republican candidates - and listed their websites.
The article totally ignored Gerard Bowen, Jr and did not list his website. I actually commented on the online edition and listed his website.
I find this very interesting as they ran this article about his campaign so they are aware that he is running.
What are the motivations for this snub? Is it because Bowen has just been here for three years, having been relocated from his home in Metairie by Hurricane Katrina?
Is it because he is not 'connected' as all the other candidates are?
Or is it something else?
I have stated in another blog that I am not endorsing this candidate; I do not intend to vote for a Republican at all. They have created enough mess to last a lifetime. It is time for a breather and I feel that either John Milkovich or Paul Carmouche can offer that.
However, I do love an underdog and Mr. Bowen definitely fits that mold. Underdog or not, the snub by The Times was pretty blatant and should be explained.

VP? Jindal Endorsed by Washington Times

The Washington Times, a newspaper known for its conservative leanings, has added its voice to the many that are calling for John McCain to pick Governor Jindal to be his running mate.
In an editorial Saturday the paper said:
(excerpts)
"There are many things John McCain needs in a vice presidential candidate. The most obvious is a running mate who must be prepared to lead should the president be unable to. Other characteristics? Conservative. Youthful. Diverse. There is one name among those Mr. McCain is interviewing this weekend that fits the bill: Bobby Jindal.
The newly elected Louisiana governor is an exciting breath of fresh air to the national ranks of the Republican Party. At age 36, Mr. Jindal is our youngest governor and the first person of color to serve as Louisiana governor since Reconstruction. . . . .
A staunchly pro-life Roman Catholic, Mr. Jindal has the voting record to match his socially and fiscally conservative rhetoric.
. . . Critics suggest Mr. Jindal is too young. We query, too young for what? Mr. Jindal meets the Constitution's age requirement in addition to boasting an impressive, experienced and accomplished record as a public servant at the state and federal levels (since 1995.) In fact, Mr. Jindal has more executive and legislative experience than both Hillary Clinton and Barack Obama combined. The question is whether he has the ability to step in as commander-in-chief at a moment's notice. We have no doubt that he could.
. . . we hope Mr. McCain will ask and that Mr. Jindal will accept. The great people of Louisiana will understand."
H/T Your Right Hand Thief

The True Meaning of Memorial Day

Memorial Day is observed on the last Monday of May. Formerly known as Decoration Day, it commemorates U.S. men and women who perished while in military service.

Jindal for VP?

A lot of Louisiana Republicans have their panties in a wad because Bobby Jindal seems to be shooting to the top of John McCain's running mate list yet he won't say no to the possibility.

The Louisiana Conservative says "IF Governor Jindal chooses to abandon Louisiana to ascend his political career as Vice President, Louisiana Republicans are going to be so pissed off that they will likely either stay at home on election day, or they may cross over to the “Dim Side” just to make it even more clear just how they really feel. Louisiana Conservatives will feel abused and betrayed."
Some heavy-hitting people have come out for Jindal, among them Rush Limbaugh, Bill Kristol and Newt Gingrich. Former Governor Buddy Roemer, who is close to McCain, is also a fan of Jindal.
David Vitter is pushing Jindal's name for VP, but that is likely because if Jindal left Louisiana, Vitter would once again be the 'top-dawg' Republican in the state.
A majority of my fellow bloggers don't believe that McCain will offer Jindal the nomination, but I'm not so sure. Jindal is well-liked by the conservative wing of the party, and McCain definitely needs help there. A lot of Republican operatives also believe that having a non-white on the ticket would offset Barack Obama. Jindal's age is also another factor.

The proof will be in the pudding. In the meantime, it's great blogging and video material.

Jindal in McCain's Top Three

Governor Bobby Jindal, Florida Governer Charlie Crist and Mitt Romney are all scheduled to meet with John McCain this weekend.
According to MSNBC, McCain is ready to get down to buiness with potential VP's and it could come down to these three. This could get interesting.

New York Times article

Human Events on the 4th District Congressional Race: They have it Wrong

In a Story entitled “Iron Man” of B-Team In LA-4, John Gizzi in Human Events today published an article about Chris Gorman, a Shreveport Republican who is running for the 4th District congressional seat.

In Louisiana’s 4th District (Shreveport), where Republican Rep. Jim McCrery is retiring after 20 years, the smart money had it that either Jerry Jones or Steve Prator would be his GOP successor. After all, attorney Jones was well known from a strong race for mayor of Shreveport last year and Prator had almost folk-hero status as sheriff of Cato Parish (county). But the smart money didn’t take into account that neither was willing to run in ’06, so the race for the all-important Republican nomination this September is among three candidates who have not held or sought elective office before. All signs now point to Chris Gorman, business executive and one-time high-school football star, as the front-runner. Gorman’s two opponents are trial attorney Jeff Thompson and physician John Fleming, neither of whom has come close to him in terms of money raised or spelling out specific issue stands.

So far, okay, although I would disagree with his assessment of Dr. Fleming. His website (which is the best of all the candidates) has an extensive section on issues. Oh, and 'strong candidate' Jerry Jones lost the Mayor's race to the Democrat. Also, it is not 'Cato Parish (county)'. It is Caddo Parish. Also, Gorman is not a shoo-in for the nomination. Jeff Thompson, who has McCrery's endorsement, will give him a run for his money.


Gizzi in LaLa Land
In contrast to other seemingly secure Republican districts—notably the Pelican State’s 6th District that Democrats picked up in a special election two weeks ago—there is no heavyweight Democrat running in the 4th District and winning the Republican primary appears to be tantamount to succeeding McCrery.

That should be news to Paul Carmouche, the 30 year District Attorney of Caddo Parish who has announced as a Democrat. Carmouche is indeed a heavyweight. It is the Republicans who are not fielding a heavyweight candidate. Gizzi noted that all three Republicans have never held public office.
Do you suppose there is a reason that no current Republican office-holders have announced for the seat? Could it be because Jim McCrery could only pull 56% of the vote in '06, when in previous elections he got 70% plus? Is it because the Republican brand is so damaged that insiders realize that the 4th will probably go for a Democrat?
Gizzi must be getting all of his information from the Gorman campaign, as it has little to do with reality. The reality is that the 4th District is not Republican, it is conservative, and Paul Carmouche is a conservative Democrat. Of course, he will be portrayed as Nancy Pelosi's best bud, and will be linked to Rev. Jeremiah Wright via Barack Obama.
It won't work. It didn't work in the 6th District, it didn't work in Mississippi's 1st District, and it won't work here.
H/T LaNewsLink