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USGS Estimates 214 trillion Cubic Feet of Natural Gas in Appalachian Basin Formations

USGS Estimates 214 trillion Cubic Feet of Natural Gas in Appalachian Basin Formations

USGS Estimates 214 trillion Cubic Feet of Natural Gas in Appalachian Basin Formations

The Marcellus Shale and Point Pleasant-Utica Shale formations of the Appalachian Basin contain an estimated mean of 214 trillion cubic feet of undiscovered, technically recoverable continuous resources of natural gas, according to new USGS assessments.

“Watching our estimates for the Marcellus rise from 2 trillion to 84 trillion to 97 trillion in under 20 years demonstrates the effects American ingenuity and new technology can have,” said USGS Director Jim Reilly. “Knowing where these resources are located and how much exists is crucial to ensuring our nation’s energy independence.”

Image shows a map of the Eastern United States with the boundaries of the Marcellus Shale superimposed

The assessment unit map for the Marcellus Shale within the Appalachian Basin. Although it occupies similar areas as the Point Pleasant-Utica Shale, the Marcellus is much younger, having formed in the Devonian age.

(Public domain.)

The Marcellus, Point Pleasant and Utica are extensive formations that cover parts of Kentucky, Maryland, New York, Ohio, Pennsylvania, Virginia and West Virginia.

This is a significant increase from the previous USGS assessments of both formations. In 2011, the USGS estimated a mean of 84 trillion cubic feet of natural gas in the Marcellus Shale, and in 2012 the USGS estimated about 38 trillion cubic feet of natural gas in the Utica Shale.

Significant amounts of natural gas have been produced from the Marcellus and Utica Shales since the previous USGS assessments. USGS assessments are for remaining resources and exclude known and produced oil and gas.

Image: Marcellus Shale Drill Rig

A drill rig at a well site in the Marcellus Shale gas play of southwestern Pennsylvania.

(Credit: Ken Skipper, USGS. Public domain.)

The natural gas in these formations is classified as continuous, because it is spread throughout the assessed rock layers instead of being concentrated in discrete accumulations. Production techniques like directional drilling and hydraulic fracturing are required to produce these resources.

“Since our assessments in 2011 and 2012, industry has improved upon their development techniques for continuous resources like the shale gas in the Appalachian Basin,” said Walter Guidroz,  program coordinator for the USGS Energy Resources Program. “That technological advancement, plus all of the geological information we’ve gained from the last several years of production, have allowed us to greatly expand our understanding of these formations.”

The Marcellus Shale also contains an estimated 1.5 billion barrels of natural gas liquids, while the Point Pleasant-Utica Shale also contains an estimated 1.8 billion barrels of oil and 985 million barrels of natural gas liquids. Natural gas liquids are liquid hydrocarbons like propane, butane and/or ethane.

Image shows a map of the Eastern United States with the boundaries of the Point Pleasant-Utica Shale superimposed

The assessments units of the Point Pleasant-Utica Shale Formation within the Appalachian Basin. Although it occupies similar areas as the Marcellus Shale, it was formed during the Ordovician Period, millions of years prior to the Marcellus.

(Public domain.)

These assessments are for undiscovered, technically recoverable resources. Undiscovered resources are those that have been estimated to exist based on geology and other data, but have not yet been proven to exist by drilling or other means. Technically recoverable resources, meanwhile, are those that can be produced using today’s standard industry practices and technology. This is different from reserves, which are those quantities of oil and gas that are currently profitable to produce.

USGS is the only provider of publicly available estimates of undiscovered technically recoverable oil and gas resources of onshore lands and offshore state waters. The USGS Marcellus and Point Pleasant-Utica Shale assessments were undertaken as part of a nationwide project assessing domestic petroleum basins using standardized methodology and protocol.

The new assessment of the Marcellus Shale can be accessed here. The new assessment of the Point Pleasant-Utica Shale may be found here. To find out more about USGS energy assessments and other energy research, please visit the USGS Energy Resources Program website and follow us on Twitter.

 

Source: USGS

By:  Release Date: October 3, 2019

LINK:  https://www.usgs.gov/news/usgs-estimates-214-trillion-cubic-feet-natural-gas-appalachian-basin-formations

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www.vorysenergy.com /2019/10/articles/energy/usgs-big-increase-in-undiscovered-marcellus-and-utica-gas/

USGS: Big Increase in Undiscovered Marcellus and Utica Gas | Vorys, Sater, Seymour and Pease LLP
1-1 minutes

The Marcellus and Utica Shales contain around 214 tcf of undiscovered, technically recoverable natural gas, according to a new U.S. Geological Survey (USGS) assessment. “This is a significant increase from the previous USGS assessments of both formations. In 2011, the USGS estimated a mean of 84 trillion cubic feet of natural gas in the Marcellus Shale, and in 2012 the USGS estimated about 38 trillion cubic feet of natural gas in the Utica Shale,” the agency reports.

You can read more about the USGS’s findings here.

Copyright © 2019, Vorys, Sater, Seymour and Pease LLP. All Rights Reserved.

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U.S. gas group predicts record production, demand for the coming winter

S&P Global Market Intelligence ($):

As record gas production keeps pace with historic demand, market dynamics may put continued downward pressure on gas prices this winter, according to the Natural Gas Supply Association.

The group predicted record average demand of 109.3 Bcf/d, driven largely by LNG and pipeline exports and by growing use of gas in the power sector, where 7 GW of gas-fired generation is estimated to have come online this year, according to the association’s 2019-2020 winter outlook.

Tempering that expected consumption increase, however, may be warmer weather and minimal industrial demand growth, slowed by trade uncertainties, the association, or NGSA, report projected.

The association predicted 4% year-on-year production growth, compared with last winter’s 14% uptick. The outlook relies on published data and independent analysis and is prepared by Energy Ventures Analysis. Dry gas production is slated to average a record 92 Bcf/d this winter, and associated gas production from the Permian Basin should comprise the largest increase among supply areas, supported by new pipeline connections, the outlook said.

The supply side should be supported by ample storage, with a start-of-winter inventory that is 2% above the five-year average, putting total supply at 109 Bcf/d, including 4.7 Bcf/d of imports from Canada, according to the report.

Domestically, electricity demand is also on the rise, forecasted to be 27.0 Bcf/d — up from 25.7 Bcf/d last winter — according to the NGSA outlook. Low gas prices have encouraged dispatch of gas-fired generation and amid a structural shift to additional gas-fired plant.

More ($): Record U.S. gas production to keep winter prices down, industry group outlook says

LINK: read:http://ieefa.org/u-s-gas-group-predicts-record-production-demand-for-the-coming-winter/

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