Thursday, August 9, 2012

Penn. Marcellus News Update 8/8/12

Marcellus to Top Shale Gas Production
The Powell Shale Digest, a Texan energy industry newsletter, stated that after considering a recent U.S. Energy Information Agency report, we can expect the Marcellus Shale to become the top producer among national gas fields.
Real drilling operations commenced on the Marcellus Shale just five years ago. However, given the massive reserves it harbors, the Marcellus Shale has a formidable momentum.
Development in Pennsylvania's Marcellus Shale accounted for one-fifth of the nation's natural gas reserve increase in 2010, and the new numbers on how much gas is trapped in the formation lead one industry group to predict the Marcellus soon will be the new leader in domestic shale plays.
Nationwide, proved reserves of natural gas increased by the biggest year-over-year margin since the Energy Information Administration began publishing estimates, with a 12.8 percent increase in 2010, the agency said in its latest annual report.
Governor Tom Corbett was joined by elected state officials and representatives of labor and business to highlight the importance of continued state efforts to bring a petrochemical complex to Pennsylvania. The Governor detailed the steps the state has taken so far to secure this project and the challenges ahead.
The proposed facility in Beaver County would create 10,000 construction jobs and more than 10,000 positions in spinoff production and manufacturing industries. Job impacts would be felt across Pennsylvania.
"If Shell decides to build this plant, that $4 billion investment will be felt statewide," Corbett said.  "Pennsylvania has the chance to become the keystone of the new industrial revolution.
Chesapeake Energy Corp. -- which has billed itself as "America's Champion of Natural Gas" and is the country's second largest natural gas producer -- said Tuesday that it has turned off the spigot and will see a 7 percent decline in its natural gas production in 2013.
"This will bring to an end our likely unprecedented public company record of 23 consecutive years of gas production growth, which has taken Chesapeake's gas production from 10 million cubic feet per day in 1993 to more than 300 times that level currently and in the process has helped transform the U.S. gas market," Chesapeake CEO Aubrey McClendon said on a conference call with analysts Tuesday morning.
By the end of 2013, Chesapeake expects its natural gas production to drop by about 430 million cubic feet per day, or 14 percent, from its peak of 3.4 billion cubic feet per day this year.
Want to know more about what a major chem­i­cal pro­cess­ing plant would mean for Beaver County? A west­ern Penn­syl­va­nia eco­nomic devel­op­ment group is hold­ing two infor­ma­tional ses­sions, aimed at answer­ing ques­tions about the ethane cracker Shell is con­sid­er­ing build­ing near Monaca.

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