Marcellus natural gas production hits record high exceeding 15B cf/day


Natural gas production in the Marcellus region exceeded 15B cf/day in July, the most productive period ever recorded there, according to a new report from the U.S. Energy Information Administration.

Marcellus, located mostly in West Virginia and Pennsylvania, now accounts for nearly 40% of total U.S. shale gas production, and its rapid growth isn’t expected to ebb soon, the report says.

New wells in the region are expected to deliver another 600M cf/day, more than offsetting decline rates, for a net production increase of 247M cf/day.

Major Marcellus shale producers include CHK, RRC, RDS.A, RDS.B, TLM, APC, ATLS, COG, CVX, CNX, EQT, EOG, XOM, WPX, XCO, CRZO, SWN.

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Comments (24)
  • DeepValueLover
    , contributor
    Comments (11323) | Send Message
     
    Bye, bye Saudi Arabia.

     

    See ya...wouldn't wanna be ya!
    5 Aug 2014, 07:44 PM Reply Like
  • dingojoe
    , contributor
    Comments (372) | Send Message
     
    More like goodbye Appalachian coal mines. Really don't see how the Marcellus affects the Saudis.
    6 Aug 2014, 01:22 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11323) | Send Message
     
    Well for one American presidents no longer need to be photographed holding hands with the Saudi King as if they were schoolkids in puppy love.

     

    -and-

     

    "Mr. President, Prince Bandar on line 1!"

     

    "Yeah?, Tell him I'll call him back...maybe"

     

    -and-

     

    If a dozen or so Saudi terrorists attack the U.S. homeland again, this time their relatives WON'T be shuttled out of the country secretly and safely.

     

    These are some of the perks of not having to depend on medieval camel herders who got lucky for your cheap oil.
    6 Aug 2014, 05:19 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (7211) | Send Message
     
    It will take a long time for power plants to switch from coal to natural gas. It doesn't happen overnight. New England already have a shortage of coal, so they are importing from Russia.
    6 Aug 2014, 08:40 PM Reply Like
  • dingojoe
    , contributor
    Comments (372) | Send Message
     
    Go back 5 or 10 years ago when more coal was burned in NE and it came primarily from Columbia or Russia. The little cargo the came in this year to a NH plant was just a tiny blast from the past.

     

    As for now, new NG power plants will open in NJ and VA this fall. PA, OH, NY, KY and again NJ and VA all have projects coming on in 2015-16.

     

    Plants in the South and SE that continue to burn coal are switching to Illinois Basin coal because it's cheaper, and few projects can and do even burn PRB coal.

     

    Appalachian coal has been getting sliced and diced for years, Marcellus is just the final nail in the coffin of the oldest most expensive coal.
    7 Aug 2014, 10:51 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (7211) | Send Message
     
    Any rail to Maine?
    7 Aug 2014, 11:03 AM Reply Like
  • dingojoe
    , contributor
    Comments (372) | Send Message
     
    the EIA has amazing quantities of data if you want to know where coal is used and where it comes from.
    7 Aug 2014, 11:13 AM Reply Like
  • Diggerdugit
    , contributor
    Comments (79) | Send Message
     
    So the higher supply side of the equation with a reduction in US demand = a lowere price for NG. Are all the drillers in the NG play going to be able to survive the lowere returns on their capitol investments?? Guess I am also asking if CHK is a buy here at this level?? Is brother Carl Ichan still in the game with CHK??
    5 Aug 2014, 08:13 PM Reply Like
  • flyerguy1300
    , contributor
    Comments (1108) | Send Message
     
    Icahn is still in with CHK along with SSE. CHK reports earnings in the morning. CHK still has a buy rating with a price target of $35
    5 Aug 2014, 08:15 PM Reply Like
  • ComputerBlue
    , contributor
    Comments (1395) | Send Message
     
    And the common shares of most Marcellus players continue to go down..fantastic.
    5 Aug 2014, 08:19 PM Reply Like
  • PalmDesertRat
    , contributor
    Comments (3839) | Send Message
     
    Rapid growth will ebb if producers find out that can't make a profit any more.
    5 Aug 2014, 08:31 PM Reply Like
  • Hendershott
    , contributor
    Comments (1831) | Send Message
     
    Everyone, except the producers themselves, is ignoring the improvements in well costs and production with new well designs.
    5 Aug 2014, 09:29 PM Reply Like
  • PalmDesertRat
    , contributor
    Comments (3839) | Send Message
     
    There will be a point where the marginal revenue does not provide an acceptable rate of return on marginal cost. At that point the rational producers will cut back.
    5 Aug 2014, 09:35 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2865) | Send Message
     
    The best Marcellus/Utica wells have break even costs around $1, so there's a long way to push costs down. Also drillers need to drill land to hold acreage, so some may drill unprofitable wells just to avoid losing the leases.
    5 Aug 2014, 09:59 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (7211) | Send Message
     
    I thought (NYSE:PVA) also had acreage there.
    5 Aug 2014, 09:02 PM Reply Like
  • iosum
    , contributor
    Comments (89) | Send Message
     
    didn't RGP buy those assets at years end 2013? they took gas, oil, coal and water supplied..everything. smart money would have bought PVA right after the sale, they must have poured profit into eagle ford holdings and never looked back.
    11 Aug 2014, 10:10 PM Reply Like
  • mlr
    , contributor
    Comments (930) | Send Message
     
    It's time to ramp up the exports in the next few years to solve the EU's Russia problem, among others and to ensure the success of the US shale gas producers, because at this rate there will be a glut and bankruptcies; proving again they haven't learned from the multitude of times this has happened in the history of the oil/gas industry.
    5 Aug 2014, 10:05 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (7211) | Send Message
     
    We have no LNG exporters. (NYSEMKT:LNG)'s will be the first to come online. Right now we use Canada's LNG export terminal.
    6 Aug 2014, 08:43 PM Reply Like
  • deercreekvols
    , contributor
    Comments (9722) | Send Message
     
    How would the numbers be affected if New York governor would lift the moratorium on fracking?
    Plenty of Nat Gas sitting under the Empire State and Mr. Cuomo seems to be content to let it sit there.
    5 Aug 2014, 10:12 PM Reply Like
  • dccoins
    , contributor
    Comments (123) | Send Message
     
    I thought I read somewhere that they can refine natural gas into gasoline, must be wrong or they would be doing it.
    5 Aug 2014, 10:13 PM Reply Like
  • retired358
    , contributor
    Comments (305) | Send Message
     
    dccoins: Yes, nat gas can be converted/processed to gasoline, diesel, jet fuel, et.al. However, the capital cost is high and one would need to have a low guaranteed nat. gas price to do the investment - otherwise, the risk is too great.
    6 Aug 2014, 12:23 AM Reply Like
  • nemonemo
    , contributor
    Comments (339) | Send Message
     
    Those wells deplete at 70-80% rate.
    6 Aug 2014, 01:30 AM Reply Like
  • Peter Osborne
    , contributor
    Comments (19) | Send Message
     
    When the catalysts required to "crack" natural gas into diesel, gasoline etc. with the nation's vast supplies of N.G. we really will be able to tell the Arabs to pound sand.
    NYS from the Hudson, Mohawk, Lake Erie to the PA border has the Marcellus and Utica shale deposits below. NYS has been using the Marcellus since 1808, and now Cuomo thinks there's a reason to avoid the profit , jobs and tax revenue that growth in the energy will produce, how irrational.
    8 Aug 2014, 04:24 PM Reply Like
  • retired358
    , contributor
    Comments (305) | Send Message
     
    Nat. gas, being a C1, is not technically "cracked" into longer chain hydrocarbons. The catalysts are available to convert nat. gas to the longer chain hydrocarbons...the issue is economics (would need a long term supply of nat. gas at current prices - which is hard to acquire).

     

    I fully agree that a state that prohibits the development of its own resources should not be able to rely on others to supply their own needs - except at a significantly higher cost (a tax if you will on their decision to rely on others).
    9 Aug 2014, 02:48 PM Reply Like
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