Posts Tagged ‘natural gas liquids’

Associated Press: USGS boosts amount of Marcellus Shale gas reserves

By KEVIN BEGOS

PITTSBURGH — The U.S. Geological Survey said Tuesday that the Marcellus Shale region contains some 84 trillion cubic feet of undiscovered, recoverable natural gas, far more than thought nearly a decade ago.

Tuesday’s figure is much higher than the last government assessment in 2002, which suggested about 2 trillion cubic feet of recoverable gas.

The USGS said the estimate came from new information about the gas-rich formation underlying New York, Pennsylvania, Ohio and West Virginia, and from technical improvements in how wells are drilled.

Environmental groups have expressed concerns that the process of extracting the gas from deep underground could contaminate the water supply. But gas industry groups welcomed the independent government estimate.

“While some critics continue to question the viability of responsible domestic shale gas development, it is abundantly clear — as laid out by this new data — that the Marcellus Shale will continue to lead the way in meeting American’s energy needs for years to come,” said Kathryn Z. Klaber, president and executive director of the Marcellus Shale Coalition, an organization of energy companies that says it’s committed to the responsible development of natural gas from the shale formation and the enhancement of the region’s economy.

The agency also estimated there are around 3.4 billion barrels of undiscovered, recoverable natural gas liquids. That product attracts a premium price over the natural gas.

The USGS figures represent an average of several possibilities about the gas reserves, located thousands of feet beneath the surface and coaxed out of the ground through high-volume hydraulic fracturing, or fracking.

The new survey suggested that the gas reserves are 43 trillion cubic feet to 144 trillion cubic feet, and the gas liquids are 1.6 to 6.2 barrels, with a 95 percent probability of the low range and 5 percent of the high range.

More than 3,300 wells have been drilled across Pennsylvania in just the last few years. The boom has raised concerns about the use of fracking, which injects chemical-laced water to break up the shale and allow natural gas to escape into the shale to push out the minerals. Environmental groups and the Environmental Protection Agency worry that the process could damage water wells, poison groundwater or harm trout streams. But the industry insists it’s safe.

The USGS Marcellus assessment covered areas in Kentucky, Maryland, New York, Ohio, Pennsylvania, Tennessee, Virginia and West Virginia.

Online: USGS Report: http://bit.ly/pDIv3M

NOTE: Click HERE to view this story online.

 

New Federal Data Highlights Staggering Amount of Clean-Burning American Natural Gas from the Marcellus Shale

USGS: 4,100% increase in technically recoverable Marcellus natural gas from 2002

Canonsburg, Pa. – Today, the U.S. Geological Survey (USGS) – an independent research arm of the Interior Department – released an updated assessment of undiscovered, technically recoverable American natural gas from the Marcellus Shale formation, considered to be second largest natural field in the entire world. According to USGS, “the Marcellus Shale contains about 84 trillion cubic feet of undiscovered, technically recoverable natural gas and 3.4 billion barrels of undiscovered, technically recoverable natural gas liquids.”

USGS notes that “these gas estimates are significantly more than its previous 2002 Marcellus assessment, “which estimated a mean of about 2 trillion cubic feet of gas (TCF) and 0.01 billion barrels of natural gas liquids” – representing a 4,100% and 33,900% increase, respectively.

Kathryn Z. Klaber, president and executive director of the Marcellus Shale Coalition, issued this statement upon reviewing the new USGS assessment:

“These new figures are further affirmation that the Marcellus Shale will continue to safely produce prolific amounts of clean-burning American natural gas for generations to come. While advent of shale gas development in the United States was only several years ago, its impact is proving to be profound and lasting.

“Gone are the days of America potentially relying on often-unstable regions and countries around the world to meet our growing natural gas demands. As this responsible development continues to expand across the Marcellus region, and the country, tens of thousands of Americans are finding work in an industry that is fundamentally strengthening our nation’s core.

“While some critics continue to question the viability of responsible domestic shale gas development, it is abundantly clear – as laid out by this new data – that the Marcellus Shale will continue to lead the way in meeting American’s energy needs for years to come.”

NOTE: Click HERE to view USGS’s updated assessment online. The USGS report follows a recent economic impact analysis conducted by researchers at Penn State University, which found that the Marcellus Shale formation could become the leading supplier of natural gas in the United States within a decade.

Posted at marcelluscoalition.org

 

Chesapeake aims to raise $5 billion

By MURRAY EVANS Associated Press Writer

OKLAHOMA CITY — Chesapeake Energy Corp. said Monday it plans to raise about $5 billion over the next two years in an effort to expand its investment in oil and natural gas liquids and to reduce its debt.

Oklahoma City-based Chesapeake announced a “strategic and financial plan” that includes the sale of up to a 20 percent equity interest in its Chesapeake Appalachia LLC subsidiary to investors within the next three to 12 months. Chesapeake is a key driller in the Appalachian Basin, with 24 operating rigs in the Marcellus Shale natural gas play.

Chesapeake also announced a private placement of $600 million of a new series of convertible preferred stock to investors in Asia. The investors, Maju Investments (Mauritius) Pte Ltd. and Hampton Asset Holding Ltd., will have an option for up to $500 million more shares within the next 30 days.

Of the $5 billion to be raised, Chesapeake said it plans to use $3.5 billion to pay off its debt and $1.5 billion to focus on drilling for oil and natural gas liquids.

Chesapeake also is looking at negotiating various joint ventures as part of its plan, which the company said is ultimately designed to achieve an investment grade rating for its debt securities.

Chesapeake is one of the top independent natural gas producers in the U.S. but has gradually expanded its oil and natural gas liquids portfolio in recent months. Company spokesman Jim Gipson said natural gas accounted for about 90 percent of Chesapeake’s production in the first quarter of 2010, down from 93 percent a year ago.

Chesapeake’s CEO Aubrey McClendon has spoken in recent weeks about the company’s interest in expanding its oil and natural gas liquids production, noting that oil prices are rising while the cost of natural gas is stagnant. Crude oil rose $1.69 to $76.80 per barrel Monday on the New York Mercantile Exchange while natural gas rose 15.5 cents to $4.170 per 1,000 cubic feet.

In a production update issued last week, Chesapeake said it is trying to identify more supplies of oil and natural gas liquids.

Copyright: Times Leader