Even if all drilling rigs were removed from the northern Marcellus Shale region and current drilling ceased, dry gas production in northeastern Pennsylvania would continue growing for 16 months, thanks to a large inventory of nonproducing wells and high initial production (IP) rates, Bentek Energy LLC said in a market note. “In fact, if zero rigs were operating there, production could still grow from approximately 4.1 Bcf/d today to 5.4 Bcf/d by September 2013, a 31% increase that results exclusively from working off the existing backlog of 1,000 nonproducing wells in the region,” the firm said. The assumptions in its analysis are that the 12-month average completion rate is carried forward and the average IP rate in the area is 6,500 Mcf/d. A “typical” Marcellus decline curve is also assumed. Potential pipeline capacity constraints were not included in the analysis.
Potential
Articles from Potential
Two Colorado Oil Shale Research Projects Assessed
Two research projects to assess the oil shale potential of the Piceance Basin in northwestern Colorado are undergoing preliminary assessment by the Bureau of Land Management (BLM) in Colorado.
ANR Expansion Would Target Marcellus, Utica Production
TransCanada’s ANR Pipeline Co. is holding a nonbinding open season for potential expansion of receipt capacity on its Lebanon Lateral in eastern Indiana and western Ohio. The project would carry growing production from the Marcellus and Utica shales, TransCanada said.
California Sets $100M for Alternative Transportation Fuels
Touting potential jobs and economic growth, California energy officials on Wednesday approved approximately $100 million in annual state funds to support the development of more alternative and renewable fuel vehicle technologies. Natural gas as a transportation fuel will benefit directly and indirectly for up to nearly one-third of the allotment.
Chesapeake’s Largest Shareholder Urges Board to Consider NAV-Based Sale
Chesapeake Energy Corp.’s largest shareholder, Southeastern Asset Management Inc., on Monday urged CEO Aubrey McClendon and the board of directors “to be open to any offers to acquire the whole company.”
Pennsylvania Interstate Gas Line Secures Customers
Constitution Pipeline Co. LLC, a development launched in February by frequent partners Williams Partners LP and Cabot Oil & Gas Corp., on Tuesday executed precedent agreements for the proposed 121-mile natural gas pipeline, designed to connect Marcellus Shale production in northeastern Pennsylvania to Northeast markets by spring 2015.
Questar Makes Push to Build Nationwide NGV Business
Salt Lake City-based Questar Corp. has launched a business unit to take advantage of potential growth in the natural gas transportation fueling business, especially trucking fleets, senior executives said Wednesday during a 1Q2012 earnings conference call.
Northwest Eyeing LNG for Marine Transportation
The effects of low natural gas prices are spreading to marine transportation and other potential industrial expansion in the Pacific Northwest, according to officials in the Oregon-based Northwest Gas Association (NWGA) and local media reports.
Industry Briefs
Williams Partners LP has modified the open season for Atlantic Access, a proposed expansion of its Transco interstate pipeline, as a result of discussions with potential shippers (see Shale Daily, Feb. 7). Transco is increasing the total firm transportation capacity, offering additional firm transportation paths and revising the proposed in-service date to December 2015. The revised open season runs through July 13. Atlantic Access would connect gas supplies originating in western West Virginia and Pennsylvania to markets in the Northeast, Mid-Atlantic, Southeast and Gulf Coast regions. Transco is now proposing a total of six firm transportation paths under the project. Two of the three original paths have been fully subscribed. For customer inquiries, contact Gary Duvall at (713) 215-2589.
Chevron, EQT Anchoring Texas Eastern Appalachia Expansion
Chevron U.S.A. Inc. and EQT Corp. marketing unit EQT Energy LLC have stepped up to be anchor shippers on Texas Eastern Transmission LP’s Texas Eastern Appalachia to Market (TEAM) 2014 expansion, Spectra Energy Corp.’s Texas Eastern said Thursday. The project is intended to deliver more Appalachian shale gas to markets in the Northeast, Midwest and southern United States.
