Marcellus-Utica Midstream Conference & Exhibition
The Utica: America's Next Big Natural Gas-Producing Play
Aubrey McClendon, former CEO of Chesapeake Energy, has referred to the Utica as "the biggest thing economically to hit Ohio, since maybe the plow." And he says "pound for pound, it's the best gas rock in the U.S." Yet a historic surge in production from the above-lying Marcellus shale has all but overshadowed the potential of the Utica. The formation is thicker and more porous than the Marcellus, and generally lies 3,000 - 7,000 feet deeper.
But with a recent flurry of record-breaking well results, the Utica has begun to grab some of the attention it deserves. Magnum Hunter Resources recently certified the biggest Utica well in history, which produced 46.5 Mcf/d of natural gas. And Shell's key discoveries outside of the Utica's sweet spot in eastern Ohio indicate the pay zone extends much further than originally expected.
The formation's surge in production is so recent; it was just added to the EIA's Monthly Drilling Report in August 2014. Since 2012, production has increased almost ten-fold, from 155 MMcf/d to approximately 1.3 Bcf/d. While at shallower depths, the Marcellus may be the considered the region's "lower hanging fruit," the Utica's vast potential is grabbing the attention of the world's leading producers.
And with surging production already taking place in the Marcellus and more to come from the Utica, how will the region's already over-utilized midstream assets keep up? 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. New pipelines are coming online this year, but more development is needed.
The 2015 Marcellus-Utica Midstream conference agenda is filled with in-depth coverage on Appalachia's surging production and will provide a focused look at how the midstream community is rallying to build out takeaway capacity to keep up with demand. Click here to view the complete conference agenda.