Posts Tagged ‘Marcellus’

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The Patriot-News
The Marcellus Shale Coalition has been trumpeting the fact that the drilling industry is one of the few adding jobs in a sour economy in Pennsylvania. It’s right up there with casino gambling establishments. The economic impact of the drilling industry — particularly in rural areas of the state — is indisputable.

WILK-FM
Kathryn Klaber, President of Marcellus Shale Coalition, talks to Corbett about a PA Homeland Security intelligence bulletin warning of an increasing threat to the energy sector.

VICKI SMITH Associated Press Writer
Published: June 7, 2010

MORGANTOWN, W.Va. (AP) — A crew drilling a natural gas well through an abandoned coal mine in West Virginia’s Northern Panhandle hit a pocket of methane gas that ignited, triggering an explosion that burned seven workers, state and company officials said Monday.

The blast created a column of flame that was initially at least 70 feet high, but the rig operator said the site was secure and the fire was about 40 feet high by late morning.

A team from Texas-based Wild Well Control, a company that specializes in rig fires, will decide whether to let the methane burn or try to extinguish the flames, said Kristi Gittins of Dallas,Texas-based Chief Oil and Natural Gas.

The explosion occurred about 1:30 a.m. in a rural area outside Moundsville, about 55 miles southwest of Pittsburgh, and presents no danger to any structures or people, said Bill Hendershot, an inspector with the state Department of Environmental Protection’s Office of Oil and Gas.

The operation was less than a week old: DEP records show a permit was issued June 2 to AB Resources PA LLC of Brecksville, Ohio.

Gittins said AB Resources is the operator of the well, while Chief has a “participation interest.” It is Chief’s responsibility to drill and complete the well, she said.

Chief’s site contractor, Union Drilling of Buckhannon, had drilled the first 1,000 feet of a second well on the property and was preparing to install surface casing when crews apparently hit and ignited the methane, she said.

Crews had drilled through the abandoned Consol Energy mine before without incident, she said.

Methane is a known risk when working near old mines, and the company typically takes a variety of precautions, including venting systems. Gittins could not immediately say what precautions were in place at this site.

“Luckily, our response team got there quickly, secured the area and evacuated the workers,” she said. “From all appearances, there weren’t any life-threatening injuries, so that’s a good thing.”

The seven workers were taken the West Penn Burn Center in Pittsburgh and were in fair condition, a hospital spokeswoman said.

Five were employed by Union and two worked for BJ Services Co. of Houston, Texas, said Jeff Funke, area director of the Occupational Safety and Health Administration’s Charleston office.

A spokesman for Union in Fort Worth, Texas, did not immediately return a telephone message.

The BJ Services workers were among four that had just arrived on site to place the casing, said Gary Flaharty, a spokesman for the parent company, Baker Hughes Inc. of Houston. The crew runs a safety check at the start of each shift and was just preparing to do that when the blast occurred.

Flaharty could not provide any details about the injured employees but said they’re being treated for burns and are expected to survive.

Funke said OSHA learned of the accident shortly after 8 a.m., and two investigators were being dispatched. However, they cannot enter the site and begin work until the fire is out, he said.

OSHA created a program to deal with gas drilling in the vast Marcellus shale fields about five years ago and has been proactively inspecting sites to ensure compliance with safety regulations, he said. The gas reserve is about the size of Greece and lies more than a mile beneath New York, Pennsylvania, West Virginia and Ohio.

OSHA knew there would be a lot of drilling in West Virginia and Pennsylvania, “and we did our best to get out in front of that curve,” Funke said. “So we’re well-equipped to respond to this.”

About 98 percent of the region’s drilling now involves Marcellus shale, he said.

Gittins, the spokeswoman for Chief, confirmed the company was tapping into the Marcellus reserves. The company has drilled about 75 Marcellus wells in West Virginia and Pennsylvania so far, she said, with about 15 of them in West Virginia.

This was the company’s first major accident, she said.

However, it’s the latest in a string of accidents related to the rapidly growing pursuit of Marcellus gas.

In Pennsylvania, environmental regulators are investigating what caused another well to spew explosive gas and polluted water for about 16 hours last week until it was brought under control.

A crew of eight was evacuated from the Clearfield County site Thursday, but no one was injured. That accident involved EOG Resources Inc. of Houston.

Copyright:  The Scranton Times-Tribune

Many landowners are being approached with offers to lease their land. The size of the signing bonuses that have been paid in transactions between informed buyers and informed sellers is directly related to two factors: 1) the level of uncertainty in the mind of the buyer, and 2) the number of other buyers competing to make the purchase. These factors have changed significantly in a very short time.

As recently as 2005 there was very little interest in leasing properties for Marcellus Shale gas production. The Marcellus was not considered to be an important gas resource and a technology for tapping it had not been demonstrated. At that time the level of uncertainty in the minds of the buyers was very high and the signing bonuses were a few dollars per acre.

When the potential of the Marcellus was first suspected in 2006 a small number of speculators began leasing land – paying risky signing bonuses that were sometimes as high as $100 per acre. In late 2007 signing bonuses of a few hundred dollars per acre were common. Then, as the technology was demonstrated and publicized signing bonuses began to rise rapidly. By early 2008 several wells with strong production rates were drilled, numerous investors began leasing and the signing bonuses rose from a few hundred dollars per acre up to over $2000 per acre for the most desirable properties.

If the results of current and future drilling activity do not match the expectations of companies paying for leases the amounts that they are willing to pay could drop rapidly.

Copyright: Geology.com

The presence of an enormous volume of potentially recoverable gas in the eastern United States has a great economic significance. This will be some of the closest natural gas to the high population areas of New Jersey, New York and New England. This transportation advantage will give Marcellus gas a distinct advantage in the marketplace.

Gas produced from the shallower, western portion of the Marcellus extent might be transported to cities in the central part of the United States. It should have a positive impact on the stability of natural gas supply of the surrounding region for at least several years if the resource estimate quoted above proves accurate.
Copyright: Geology.com

Throughout most of its extent, the Marcellus is nearly a mile or more below the surface. These great depths make the Marcellus Formation a very expensive target. Successful wells must yield large volumes of gas to pay for the drilling costs that can easily exceed a million dollars for a traditional vertical well and much more for a horizontal well with hydraulic fracturing.

And rock units are not homogeneous. The gas in the Marcellus Shale is a result of its contained organic content. Logic therefore suggests that the more organic material there is contained in the rock the greater its ability to yield gas. John Harper of the Pennsylvania Geological Survey suggests that the areas with the greatest production potential might be where the net thickness of organic-rich shale within the Marcellus Formation is greatest.

Copyright: Geology.com

As recently as 2002 the United States Geological Survey in its Assessment of Undiscovered Oil and Gas Resources of the Appalachian Basin Province, calculated that the Marcellus Shale contained an estimated undiscovered resource of about 1.9 trillion cubic feet of gas.  That’s a lot of gas but spread over the enormous geographic extent of the Marcellus it was not that much per acre.

In early 2008, Terry Englander, a geoscience professor at Pennsylvania State University, and Gary Lash, a geology professor at the State University of New York at Fredonia, surprised everyone with estimates that the Marcellus might contain more than 500 trillion cubic feet of natural gas. Using some of the same horizontal drilling and hydraulic fracturing methods that had previously been applied in the Barnett Shale of Texas, perhaps 10% of that gas (50 trillion cubic feet) might be recoverable. That volume of natural gas would be enough to supply the entire United States for about two years and have a wellhead value of about one trillion dollars!
Copyright: Geology.com