Marcellus investments booming.
December 18th 2011 05:41
Link: thearanya.in
Investment in the Marcellus shale natural gas field is growing faster than expected in Pennsylvania, with both the number of wells drilled and the amount of gas extracted soaring between 2009 and 2010, according to an industry-sponsored report released this week.
The Associated Press reported gas production quadrupled during that one-year period, while the number of wells in use jumped 77 percent, according to the report by the Marcellus Shale Coalition, which paid for the study.
The report estimates that this year’s production will be more than 2.5 times last year’s, and projects steady growth through 2020.
Thousands of wells have been drilled across the state in just the past few years, though not all are in production. The boom has raised environmental concerns about the use of hydraulic fracturing, a drilling technique in which water, sand and a small amount of chemicals are used to open gas-bearing shale formations deep underground.
The researchers found that natural gas production jumped from 300 million cubic feet per day to 1.3 billion from 2009 to last year. The number of wells in use nearly doubled, increasing from 595 in 2009 to 1,055 during that time.
A Penn State University expert not involved with the report said that while early production data are encouraging, long-term estimates should be viewed with caution.
Whatever happens in the future, leaseholders already are reaping benefits. The study found that companies paid about $1.85 billion in lease and royalty payments in 2010. That figure is expected to fall this year to about $1.5 billion, and then rise again in 2012.
The authors of the study were Penn State researchers Timothy Considine, Robert Watson and Seth Blumsack of the Department of Energy and Mineral Engineering. They estimated that 2,300 new wells may be drilled this year and about 2,400 more in each of the next five years.
Environmental advocates and communities where there is large-scale drilling have been pressing for an extraction tax or fee on the burgeoning industry. A commission appointed by Gov. Tom Corbett has recommended such a fee. Pennsylvania is the largest drilling state that doesn’t impose a tax or fee on natural gas extraction.
For More Info: The Aranya, Nirala Aspire
The Associated Press reported gas production quadrupled during that one-year period, while the number of wells in use jumped 77 percent, according to the report by the Marcellus Shale Coalition, which paid for the study.
The report estimates that this year’s production will be more than 2.5 times last year’s, and projects steady growth through 2020.
Thousands of wells have been drilled across the state in just the past few years, though not all are in production. The boom has raised environmental concerns about the use of hydraulic fracturing, a drilling technique in which water, sand and a small amount of chemicals are used to open gas-bearing shale formations deep underground.
The researchers found that natural gas production jumped from 300 million cubic feet per day to 1.3 billion from 2009 to last year. The number of wells in use nearly doubled, increasing from 595 in 2009 to 1,055 during that time.
A Penn State University expert not involved with the report said that while early production data are encouraging, long-term estimates should be viewed with caution.
Whatever happens in the future, leaseholders already are reaping benefits. The study found that companies paid about $1.85 billion in lease and royalty payments in 2010. That figure is expected to fall this year to about $1.5 billion, and then rise again in 2012.
The authors of the study were Penn State researchers Timothy Considine, Robert Watson and Seth Blumsack of the Department of Energy and Mineral Engineering. They estimated that 2,300 new wells may be drilled this year and about 2,400 more in each of the next five years.
Environmental advocates and communities where there is large-scale drilling have been pressing for an extraction tax or fee on the burgeoning industry. A commission appointed by Gov. Tom Corbett has recommended such a fee. Pennsylvania is the largest drilling state that doesn’t impose a tax or fee on natural gas extraction.
For More Info: The Aranya, Nirala Aspire
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