Marcellus Balloons

The Marcellus Shale got a super size upgrade: 500 tcf.

New calculations show the Appalachian Basin's Marcellus Shale formation could yield enough natural gas to supply all U.S. needs for nearly two decades -- dramatically more than previous estimates.

Penn State University geosciences professor Terry Engelder projects nearly 500 trillion cubic feet of natural gas could be produced from the entire formation, which is found in portions of five states, including most of Pennsylvania. Engelder published his latest estimate in the August issue of Fort Worth Oil and Gas Basin magazine.

"If the natural gas from the Marcellus could be extracted on demand, the Marcellus alone would last the U.S.A. more than 19 years, producing 489 trillion cubic feet of gas," Engelder said Monday. It was Engelder and Gary Nash, a professor at State University of New York at Fredonia, who stirred interest in the natural gas industry early in 2008 when they projected that production in the Marcellus Shale formation could bring massive expansion of the industry.

Late last year, Engelder made news with an estimate that 392 trillion cubic feet could be produced -- 13 times the amount the nation uses on an annual basis. Western Pennsylvania's average natural gas consumer uses about 98,000 cubic feet annually.

Brewskie thought: more upgrades are likely on the way.

- Brewskie

PA to Force Companies to Expose More Gas Data

In a follow-up to a previous story, the Pennsylvania Senate passed a bill that will ensure gas companies drilling the Marcellus Shale will disclose data publicly. The aim of this is to use production results, and encourage other companies to ponder the Marcellus (link).

A bill that would require faster disclosure about production results from wells drilled on the potentially lucrative Marcellus Shale gas formation in Pennsylvania is on the move.

The state Senate on Monday passed the bill unanimously and sent it to the House of
Representatives for consideration.

Under the bill, companies would have to report well-specific production to the state twice a year. Those reports would then be made public.

Current law prevents the state from releasing that data for five years, putting Pennsylvania out of step with the nation's biggest gas-producing states.

Advocates of the bill say revealing the information sooner will assure people that the industry is above-board and encourage other drilling companies to invest in Pennsylvania.

- Brewskie

PA May Force Companies to Reveal Gas Shale Drilling Secrets

Drilling for shale gas let America rip dimethyl sulfide last year, fouling gas' previously high price. Why not let more boys into the party? Pennsylvania is considering just that.

Fresh from Forbes:

Three decades ago, environmentalists and public officials rang the alarm when the price of fossil fuels shot up and drilling companies descended on western
Pennsylvania's oil and gas fields in search of paydirt.

The state Legislature responded with the 1984 Oil and Gas Act, which forced the companies to comply with strict new environmental standards - but also handed them a cushion that allowed them to keep secret most information about their below-ground discoveries for five years.

Now, with a fresh wave of exploration companies flocking to Pennsylvania in pursuit of natural gas in the sprawling Marcellus Shale rock formation, state legislators are considering peeling back that cloak of secrecy.

One proposal backed by several key senators would require disclosure of well-specific production data every six months in an effort to stimulate interest in drilling and bring Pennsylvania into line with major gas states.

- Brewskie