The Marcellus Shale... By the Numbers*

Transcription

1 The Marcellus Shale... By the Numbers* Katharine Lee Avary¹ and Katherine Schmid² Search and Discovery Article #0447 (202)** Posted October 7, 202 *Adapted from oral presentation given at AAPG Eastern Section meeting, Cleveland, Ohio, September 202 **AAPG 202 Serial rights given by author. For all other rights contact author directly. Consulting Petroleum Geologist, Morgantown, WV 2 Pennsylvania Geological Survey, Pittsburgh, PA Abstract In 2004 following the successful completion of the Renz well in Washington County, PA by Range Resources Appalachia LLC, using a "Barnett Shale style" massive slickwater frac completion, the Middle Devonian Marcellus Shale of the Appalachian Basin began to attract worldwide attention. The Marcellus, long recognized as a source rock for many of the hydrocarbons produced in the Appalachian Basin over the last 50 years, became recognized as a "world class reservoir". As a result, some of the world's largest exploration and production companies made the decision to obtain an acreage position in this emerging play. Most of these entries into the play were accomplished through a series of mergers and acquisitions. Many traditional Appalachian Basin operators had attractive acreage, much held by existing and long-established shallow production. In addition, operators looked further to the northeast, especially in Pennsylvania where the Marcellus is thickest, to obtain leases in areas that had not traditionally hosted oil and gas operations. Challenges operating in these previously undeveloped areas included lack of infrastructure as well as support services. In addition, local residents were unaccustomed to extractive fossil fuel industry operations and often expressed concerns over the impacts of these operations. In an effort to depict the current "state of the play", data were compiled on wells permitted and completed, as well as production data reported to date. These data were summarized geographically as well as by operator, to provide a sense of where various operators are active in developing the play. New challenges have arisen as the price of natural gas has dropped precipitously in recent months. This has caused operators to shift their focus to the western, liquids-rich side of the play. The need to process and use these liquid products has spurred additional industrial development in the form of at least one proposed ethane "cracker" plant with

2 others being discussed. Also, new transportation infrastructure is being developed for the liquids from the Marcellus as well as from the older and deeper Upper Ordovician Utica Shale.

3 The Marcellus Shale. By the Numbers Katharine Lee Avary and Katherine Schmid aka Lee and Katie Eastern Section AAPG Meeting, g, September 24, 202

4 New Annual Gas Production Records In PA, the previous annual gas production o record was set in 200, with 573 Bcf. This was surpassed in 20, when production of over Tcf was reported. Of this, 822 Bcf was from Marcellus wells. In WV, the previous annual production record for gas was set in 97, with 309 Bcf. This was surpassed in 20, when production of 394 Bcf was reported. Of this, 92 Bcf was from Marcellus wells.

5 Pennsylvania Annual Gas Production,200,000,000, , , ,000 Annual Gas Production (MMCf) 200, Year Source: EIA, PAGS

6 West Virginia Annual Gas Production 450, , , , , ,000 50,000 Annual Gas Production MMcf 00,000 50, Year Source: EIA, WVGES

7 PA Annual Oil Production Source: EIA 98

8 WV Annual Oil Production WV Annual Oil Production Source: EIA

9 Marcellus Cumulative Gas Production by County

10 Marcellus Cumulative Oil Production by County

11 Marcellus Cumulative Condensate Production by County (PA only)

12 PA Operator Summary company Chesapeake 473 TallismanT 327 Range Resources 30 SWEPI 23 Cabot Oil & gas 78 number of wells

13 PA Operator Summary company cum gas prod Mcf Chesapeake 259,5,996 TallismanT 207,433, Cabot Oil & gas 80,529,664 Range Resources 64,43,84 Anadarko 50,58,47858

14 PA Operator Summary company condensate prod bbls Range Resources 74,945 SWEPI 98,593 Atlas 43,450 Chevron 6,85 PA General Energy 233

15 PA Operator Summary company cum oil prod bbls Range Resources 730,465 Atlas 08,509 Chevron 5,80 Chesapeake 2,24 XTO Energy 575

16 company WV Operator Summary CabotC b t 32 Chesapeake 30 EQT 40 Hard Rock 37 ECA 06 number of wells

17 WV Operator Summary company cum gas prod Mcf Chesapeake 09,045,326 Antero A t Resources 62,794,530 EQT 38,476,036 Cabot 22,236,73 Hall Drilling 2,47,698

18 WV Operator Summary company cum oil prod bbls Chesapeake 380,508 AB Resources PA LLC 76, EQT 00,269 PetroEdge Energy 46,5 Stone Energy 39,28

19 Chesapeake wells 774 wells 368 Bcf gas 392,722 bbls oil Largest # wells Most M t gas production Chesapeake wells Marcellus_Wells_of_PA_09202 Marcellus_Wells_of_WV_ WV

20 Cabot wells 499 wells 203 Bcf gas 2 nd largest # of wells 3 rd highest gas production Cabot wells Marcellus_Wells_of_PA_09202 Marcellus_Wells_of_WV_098202

21 Tallisman wells 327 wells 207 Bcf gas 3 rd largest # of wells 2 nd highest gas production Tallisman wells Marcellus_Wells_of_PA_09202 Marcellus_Wells_of_WV_098202

22 Range Resources Wells 30 wells 64 Bcf gas 730,465 bbls oil 74,945 bbls condensate 4 th largest # of wells 4 th highest gas production Most oil production Most condensate production Range wells Marcellus_Wells_of_PA_09202 Marcellus_Wells_of_WV_098202

23 Eqt wells 206 wells 83 Bcf gas 00,440, bbls oil 6 th largest # of wells 5 th highest gas production 33 rd highest h oil production Eqt wells Marcellus_Wells_of_PA_09202 Marcellus_Wells_of_WV_098202

24 SWEPI wells 23 wells 46 Bcf gas 32 bbls oil 98,593 bbls condensate 5 th largest # wells 2 nd most condensate SWEPI wells Marcellus_Wells_of_PA_09202 Marcellus_Wells_of_WV_098202

25 Antero Resources wells 7 wells 65 Bcf gas,046 bbls condensate 6 th highest gas production from small number of wells Antero wells Marcellus_Wells_of_PA_09202 Marcellus_Wells_of_WV_098202

26 Wells with > 2 Bcf cumulative gas production In PA, there are 45 wells with cumulative production > 2 Bcf. A well in Greene Co has produced more than 6 Bcf. In WV, there are 9 wells with > 2 Bcf. Wells with > 2 Bcf Marcellus_Wells_of_PA_09202 Marcellus_Wells_of_WV_098202

27 Wells with > 20,000 bbls oil production In PA, there are 4 wells with > 20,000 bbls and in WV, there are 5 wells with > 20,000 bbls. Marcellus Wells with > 20k bbls Marcellus_Wells_of_PA_09202 Marcellus_Wells_of_WV_098202

28 Horizontal Wells Most where Marcellus is thicker Horizontal Wells Marcellus_Wells_of_PA_09202 Marcellus_Wells_of_WV_098202

29 35,000,000 30,000,000 25,000,000 20,000,000 5,000,000 0,000,000 5,000, ,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 5,000,000 0,000,000 5,000, ,000,000 35,000,000 30,000,000 25,000,000 20,000,000 5,000,000 0,000,000 5,000,000 Gas_200 Gas_2005 Gas_20 0 Gas_200 Gas_2005 Gas_20 Gas_200 Gas_2005 Gas_20 60,000,000,, 40,000,000 20,000,000 00,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Washington County 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000,000,000 0 Butler County Gas Production Gas_200 Gas_2005 Gas_total_20 300,000, ,000, ,000,000 50,000,000 00,000,000 50,000,000 0 Bradford County Gas Production Gas_200 Gas_2005 Gas_total_20 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 0,000,000 0 Gas_200 Gas_2005 Gas_20 200, 200,000,000 80,000,000 60,000,000 40,000,000 20,000,000 00,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Susquehanna County Gas Production 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 0,000,000 0 Butler Co. 20- Bcf Bradford Co Bcf Susquehanna Co Bcf Mcf Mcf Marshall Co Bcf Marshall County Gas Production Washington Co Bcf Mcf Mcf Lycoming Co Bcf Lycoming County Gas Production Co Bcf Wetzel County Gas Production Mcf Wetzel Mcf Doddridge County Gas Production Doddridge Co Bcf Mcf Harrison Co Bcf Mcf Harrison County Gas Production Annual County Gas Production , 20

30 Summary Total number of wells completed: Horizontal: 835 (PA 469; WV 366) Vertical: 847 (PA 449; WV 398) Total gas production:.586 Tcf Total oil production:,740,754 bbls Total condensate production (PA only): p ( y) 968,032 bbls

31 Acknowledgements The WV Marcellus data compilation was supported in part by RDS Agreement 487M460 and U.S. Department of Energy Contract DE-AC26-04NT to the West Virginia Geological l & Economic Survey. WVGES Colleagues Jacob Darrah, John Fot, g,, Mark Van Dyke and Paula Hunt assisted in data compilation and assessment.