Appalachia is driving growth in oil and gas production

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Guernsey Co. well rig
(Farm and Dairy file photo)

(Scroll down for maps comparing oil and gas well locations in Appalachia in 2012 and 2017.)

WASHINGTON — Shale gas production in the Appalachia region has increased rapidly since 2012, driving an overall increase in U.S. natural gas production.

According to the U.S. Energy Information Administration’s Drilling Productivity Report, natural gas production in the Appalachia region — namely the Marcellus and Utica shale plays — has increased by more than 14 billion cubic feet per day (Bcf/d) since 2012.

As of November 2017, more than 1,800 wells have been drilled in the Utica-Point Pleasant, and more than 11,300 wells have been drilled in the Marcellus shale.

Overall Appalachian natural gas production grew from 7.8 Bcf/d in 2012 to 22.1 Bcf/d in 2016 and was 23.8 Bcf/d in 2017, based on EIA data through October 2017.

Productivity increasing

Drilling wells in the Appalachia region has become very productive.

The average monthly natural gas production per rig for new wells in the Appalachia region increased by 10.8 million cubic feet per day since January 2012. EIA attributes this increase to efficiency improvements in horizontal drilling and hydraulic fracturing in the region, which include faster drilling, longer laterals, advancements in technology, and better targeting of wells.

For example, in West Virginia, the average lateral length per well has increased from about 2,500 feet in 2007 to more than 7,000 feet in 2016. Some operators have recorded lateral lengths as long as 15,000 feet in Appalachia and 19,000 feet in the Utica.

Along with longer horizontal drilling, the days it takes for completion have decreased from about 30 days in 2011 to seven days in 2015.

Marcellus shale

The Marcellus shale extends from New York in the north to Kentucky and Tennessee in the south and is the most productive natural gas-producing formation in the Appalachian Basin.

The formation’s footprint covers about 95,000 square miles.

Dry natural gas wells in the Marcellus are mostly located in the eastern portion of the play, and liquids-rich wells are typically located in the western portion.

Utica shale

The Utica Play consists of two stacked geological units: the Utica and Point Pleasant formations. These formations are older — and therefore deeper — than the Marcellus formation.

The Utica play spans about 60,000 square miles across Ohio, West Virginia, Pennsylvania, and New York.

Drilling in the Marcellus Shale began in 2003 in Pennsylvania and was followed by drilling in West Virginia. In 2010, drilling began in the deeper Utica and Point Pleasant formations in Ohio and has more recently started in Pennsylvania and West Virginia.

(Click image for larger version.)

oil and gas wells Appalachia 2012
Source: U.S. Energy Information Administration, based on DrillingInfo, Inc., Appalachian Oil and Natural Gas Research Consortium, and U.S. Geological Survey
oil and gas wells in Appalachia, 2017
Source: U.S. Energy Information Administration, based on DrillingInfo, Inc., Appalachian Oil and Natural Gas Research Consortium, and U.S. Geological Survey

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2 COMMENTS

  1. The boom in natural gas and oil from U.S. shale is due to deregulation of burdensome Government regulations included in the most important domestic reform President Trump’s new America first energy policy of energy dominance. For more on energy dominance watch energy expert Dr.Daniel Fine’s great lecture on the subject here -> https://youtu.be/yAe5ll5fFyg

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