Marcellus-Utica Midstream Conference & Exhibition
The World’s Largest Natural Gas Shale Play Just Keeps Getting Bigger
Covering 95,000 square miles underground through West Virginia, Ohio, Pennsylvania and New York, the Marcellus Shale formation has surged forth as the world's biggest natural gas-producing region. Just four years ago, Marcellus natural gas production was 2 Bcf/d. In August 2014, the region produced about 15.6 Bcf/d — almost 38% of total U.S. natural gas production. And experts say the trend will continue.
According to Wood Mackenzie (as reported in the Houston Chronicle's Fuel Fix), there's still at least $90 billion to be made from tapping into the region's vast reserves. They estimate the top 20 operators in the play will earn nearly $86 billion over the life of the play after the cost of reaching the reserves. With an abundance of resources up for grabs and profits to be made, activity will undoubtedly increase. Wood Mackenzie predicts activity will peak sometime between 2018 and 2020. They say companies will drill 2,600 wells per year, up from around 1,400 this year. And production will climb nearly 25% to 20 Bcfe/d by 2020.
Surging activity has generated extraordinarily high demand for midstream takeaway infrastructure. New pipelines are coming online this year, and major investments are being made as pipeline operators plan and implement capacity expansion projects and "reverse streams" to seize the opportunity to gather low-cost Northeast gas and NGLs. But, more development is needed.
MarkWest Energy Partners is the largest processor of natural gas in the Marcellus Shale, with fully integrated processing, fractionation, storage, and marketing operations critical to the rich-gas development in the northeast United States. Attend the "Operator Spotlight: The Marcellus Evolution" session to hear MarkWest's COO, John Mollenkopf, as he discusses how this midstream major is changing to meet Marcellus producers' needs. Click here to view the complete conference agenda.
Source: Houston Chronicle Fuel Fix