A new assessment of the Marcellus Shale says the Northeastern U.S. formation may contain 84 trillion cubic feet of undiscovered, recoverable natural gas, far more than believed less than a decade ago.
The new assessment by the U.S. Geological Survey updates a 2002 study of the gas-rich formation that stretches though New York, Pennsylvania, Ohio and West Virginia, which concluded the region had about 2 trillion cubic feet of recoverable gas.
The growth in the USGS estimate takes into account advances in how drilling and completion techniques – namely horizontal drilling and hydraulic fracturing – that have made more formations accessible.
The agency also estimates there are about 3.4 billion barrels of undiscovered, recoverable natural gas liquids in the Marcellus, products that currently fetch higher prices than natural gas.
The assessment is purely a geological one and doesn’t take into account factors such as the price of natural gas, the infrastructure to produce and transport the gas or the regulatory and environmental concerns, said Brenda Pierce, the USGS’s Energy Resources Program Director.
The USGS purchased production data from the Marcellus and tapped a wide range of geological information on the formation to reach the new assessment figures. The USGS also worked with a number of state geological survey groups, academics and industry officials on the assessment.
Pierce said the agency doesn’t take into account what exploration and production firms believe their future production will be from wells – a topic that appears to be part of inquiries directed at a handful of E&P firms by the Securities and Exchange Commission and the New York State Attorney General.
“We look issues like the drainage area each well has to reach, look at the cell size, how many wells are typically drilled in each area,” Pierce said.
Since the 1930s oil and gas drillers have noted natural gas when they passed through the Marcellus while targeting other formations. It was largely considered a source rock, however, not a potential reservoir rock that could be tapped for production.
The successful combination of horizontal drilling and hydraulic fracturing were used widely by the industry shortly after the 2002 assessment, leading to a boom in gas exploration in the Marcellus and other shales throughout the country.
Hydraulic fracturing – the process of pumping millions of gallons of water, sand and chemicals into the shale formations to break them apart and release the gas – has drawn concern from many environmental groups, homeowners and some lawmakers because of reports of drinking water contamination near drilling site.
Industry has argued there are no incidents of so-called frac jobs contaminating drinking water because the process usually occurs many thousands of feet below aquifers. A number of homeowners have sued companies saying the drilling has led to natural gas and chemicals in their water.
A report issued by Energy Secretary Steven Chu’s Shale Gas Advisory Board earlier this month concluded that water contamination was more likely due to poor well construction than fracking, but that there are reasonable concerns over air emissions surrounding natural gas drilling and production. The board recommended a wide range of data collection and measurement efforts for industry.
The 84 TCF figure is the mean of a range of possible gas volumes. For example on the low end of the range there’s a 95 percent chance the formation has 43 TCF of gas and on the high end a 5 percent chance the resource includes up to 144.1 TCF.
For natural gas liquids, the range runs from a 95 percent change of 1.5 billion barrels to a 5 percent chance of 6.1 billion barrels.
There are large variations in how much gas is available in different parts of the Marcellus, Pierce said, so the results can’t be applied to all the acreage.
The natural gas liquids potential is mainly in what is known as the Interior Marcellus assessment unit which runs from the north of West Virginia through central Pennsylvania and into southwest New York.
Now can they find a way to get it out of the ground without totally ruining the environment or poisoning everyone in the process?
Yeah and it will all blow it’s dumped water vapors right over my Summer farm in VT. Oh well what does it matter , they are tearing up all our hay fields for Guberment subsidized Corn for that ecomomically challenged ethanol rip off anyway. So keep bring that poison milk from China this a way.
Wettest spring ever. Up nortthe east.So corn began planting in JULY, making it impossible in that short season to grow. Why ? Cause you and I will pay for the lost eco cropswith the ethonal subsidies.
Wake up . Clean Natural gas? Nope currently exempted from the Clean Air and water Act by Cheney, it is not just the injection that is a concern for LONG TERMERs, the dirty (opps that is called spent ) water is just brough to the surface ( with up to 50% of the injected carcinogens ) to be what? Scrubbed? Filtered ? In any way cleansed or even recycled? NOpe Just dumped. The fav way of getting rid of it? MISTING IT in the air to assist in VAPOPIZING the crude. And vaporize does not mean “go away”. It means change to vapor as in sniff you gas filer tiube from your car.
Wonder why WY now has worse air than LA in an area the size of CONN (see any geo map, spot the ozone areait and there are tht famous WY gas fields.
So “clean burning” Natural gas? Nope intellectually dishonest as a Baptistr preacher after donations for his big balck caddy.
Put it back under the Clean air and water act, like EVERYother operation in this country and fair enuf. Have fun.
ASpare me an you “commie” responses or you don’t know crap.
My family was Humble oil and I still live of Exxon stock from the buy out. Know oil /gas through and thru and know this- my dad and most of Humble would turn over with the callous money today screw tomorrow and this energy “trader” way of manipulating the true demand and supply system this country eas based on.
These vipers of today are not here to save you any money at the pump either. Shoot, neither were we , but we wouldn’t poisen your childern for a fast buck either. Thanks Dick, you two bit once governnet low level haCKbeorcrat uracra turned traitor. Went from 80 K a year his entire life to mutimillionaire after leaving the white house . Over the chocking lungs of your children and old ones.
Just noticed the picture alonside the article. See that?
That is spend water just allowed to vaporize on it’s own with up to 50% of the injected hydro carvbons and known carginogens. Just Vaopize. Into your childrens’ lungs.
WHy? Cause Dick eand Co exempted this industry from the clean air and water act. The same one that all other industries must adhere to.
Wow Dick, from an 80 K gunbberment employee with net worth of next to nothinf to a muti millionaire immediately after leaving you post? Yeah thing stinks there. ‘Cept for that water pond you see just sitting ther in the pic. Don not underatand how anyone proudly calling thenselves conservative patriots could approve of that crooked move.
We have tremendous Natural Gas Deposits in the US….why are we not seeing the conversion of our fleet vehicles to CNG????? You would think that if Natural Gas is our “bridge” fuel of choice, the big oils would be wrestling to install CNG stations across this great country of ours!
Congratulations Fowler, I think you just set the record for most ignorant comments. You might want to start using some discretion.
Who needs natural gas? We are moving back to dark ages. Judging by the comments posted here our citizens are getting dumber by the day and they all want to live in cave with no electricity or running water. Besides, this gas is in the Northeast. No way they will ever be allowed to drill for gas or oil. It is expected that all of the energy they consume will come from somewhere else and will always be cheap and readily available in endless amounts, and if it is not, it is because the oil companies are so evil. Some people seem to think the endless cheap or free energy is guaranteed by the US Constitution.
“Besides, this gas is in the Northeast. No way they will ever be allowed to drill for gas or oil.”
Natural gas is already being produced in the Marcellus Shale, particularly in Pennsylvania, and production in increasing all the time.
What a stupid rant by Mike Bone, somebody who knows abslutely nothing about the oil and gas indeustry except his father supposedly worked for pre-Exxon, Humble. Daddy probaly ran a gas station for Humble.
And Mark D. a little history lesson is necessary for you. The oilfields in NY, PA, WV, and OH were discoverd and produced for nearly 50 years before Spindletop put TX on the map.
What a shame; hooked on all that sweet milk and yet hate the horrible pile of manure in back of the barn. But just like the conscience stricken soul in Vermont on his gentleman’s farm who mangages to cope living off his everlovin’ dividends and capital gains from his big oil (Exxon) shares, we will continue to order dairy ’cause its so good. Love that Blue Bell too.
Now if we could just get the price of a gallon of regular below $3.50 life would be happier for all including some shareholders since Exxon might be forced to cut his dividend.
Now the thing that really upsets me, is that while using the gasoline to get to my favorite TexMex emporium, when I order lunch I am forced to pay $3.50 for a bottle of beer with maybe 12 ounces of liquid. Now one asks which required more risk, expense, capital commitment, and inventive genius to produce?
Wait until Obama finds out…
@observer: Exxon paid its shareholders during the depression in the ’30s. It has raised its dividend every year for the past 33 years. No other company has done that.
I believe the USGS estimates will prove to be conservative. Some industry estimates for the Marcellus Shale are over twice that high. Over the past three years, US natural gas production has been increasing while the natural gas rig count dropped from it’s recent high in summer of ’08. This is due almost entirely to the impact of high-rate gas shale production from the Marcellus, Haynesville, Bossier, Woodford, Fayetteville, Eagle Ford and Barnett shales. Even if we had not gone into recession, production from these shales would have resulted in much lower natural gas prices than the peak of $14/mcf we experienced in summer ’08. The natural gas price now is around $4/mcf. One of the greatest and most under-appreciated success stories in the US, and a boon for US consumers.
Right! Are you complaining or applauding?
One was responding to the sad laments of Mike Bone who grieves over the fact that while he lives on income from his inherited Exxon shares, he just abhored work in the Marcellus to help ensure the energy security of the U.S. since it threatened East coast air and water. As if the E&P efforts by Humble (“My family was Humble Oil”) in this area and elsewhere left no stain or environmental damages,not to mention the enormous waste and pollution generated by the decades of flaring when there was no market for natgas.
And one can assure him those days of free markets he yearns for did not exist for very long since everyone recognized the result was to waste hydrocarbons under the “right of capture.” All until the creation of the Texas Railroad Commision aimed at “conservation” although the resulting constraints on supply led some to conclude Texas the then Saudi Arabia of the world was something of the inspiration of OPEC. Not exactly rough and tumble competition and free enterprise which brought occasional 5 cent a barrel crude in the Depression depths. Ah, yes the good old days.
And one is certain that Mr. Bone thinks we ought to quit using so much energy for air conditioning in Houston and just move to Vermont where it is oh so cool and the folks never heard of an air conditioner. He and his family can just pop off to the shore and cool off in those Atlantic waters and enjoy a delicious lobster sandwich if it gets a little warm on the farm.
Some of us are amused when we read of the manipulation and price management of crude in the American market. Apparently these “manipulators” are very incompetent since they currently manage to get the price only up to $85 a barrel or so.
Now compare the job and professionally competent “manipulators” in markets outside the U.S. to get a better idea of prices elsewhere. For example Brent crude is trading around $110 per barrel and the other world markets elsewhere similarly report crude closer to the London price than reported on the NYMerc.
Riddle me that one, please.
I also suspect the USGS is on the conservative estimate side. Yet, the high pressure buyers of mineral rights are likely to use the largest figures around to get quicker signing of documents. I can hear the claim: “You’ll get royalty checks for the next 30 years with these estimates” But, I doubt they will put that in writing. Otherwise, will anyone police mineral rights signings for wayout spoken claims?
Just because it is there and just because it is in abundance and just because we could sell it to other countries does not mean the tree huggers will allow us to get to it.
I am sure they have their lawyers on it at this very moment and they have some little bug or something that it’s life will be endangered if we attempt to drill for this. After all a bugs life is worth more then a persons.
Unless & until our wind generators & solar panels can replace the energy generated by coal, oil & nat gas are the real alternatives for the reasonable future. That is, up to 100 years. Til then, we can use that nat gas to fuel the processes needed to find & work out the kinks for an alternative fuel source.
Fracking is not perfect. Nothing is. The solar farms planned will occupy hundreds of thousands of acres, employ glycol to cool those panels, & a salt mixture under development so they can store energy when the sun does not shine or the wind blow.
How about we all support reasonably responsible domestic energy production & then work on alternatives development, rather than fight every effort to do anything?
There is no reason to worry about the “tree huggers”. Pennsylvania in particular has alot of natural resources. The resources are bought up by corporate america and capped off waiting for demand to rise.
There probably should be a line drawn as to how this process works because at least here it’s alot of Halliburton and we all know who those folks are.
Would joe shmoes resource company get rights to some of these finds? I doubt it and even if they could however the pricing and regulation is they couldn’t afford it.
The PA media (owned by the drive-bys) of course have a field day with shale promoting agendas of those against it because it’s affecting the water supplies.
Why can’t these people understand that it’s government that is pumping filthy water into your house that’s the problem?
When you think of a water supply you should think of one that is clean and pure and piped into your home. What we have is supplies that aren’t being cleaned enough delivered through pipes with cracks and holes and instead of that all being resolved we crucify an industry.
Last winter we had water line breaks all over the area. It’s all managed by the state. What do the people think happens when the lines break? That water mixes in with road sludge, salt, anything else up on the highways and then comes right back down into your house.
There was no hurry to fix any of that #1 because of money and #2 they know the reality. Yeah im right about the breaks but I probably don’t know the half of what’s coming through those pipes without a break.
I couldn’t figure out if Bone was off his meds or just escaped from the home and using a computer at a library or something. Those actually were the funniest posts I’ve read on this site for awhile.
All of you “farmers” in New England and other assorted Liberals just love to rant about HALIBURTON and CHENEY, but for some reason I don’t see you giving up your electricity, gasoline, Apple computer toys…..Show us that your rantings are for real. Give up all modern toys and live like the Amish and I will listen to you.