The top 20 Marcellus Shale operators will spend nearly $110 billion on drilling in the play through 2035, according to a new report released today by Wood Mackenzie. The research firm said the Marcellus holds more than $90 billion in remaining value. Capital expenditure in the Marcellus is expected to reach $10.9 billion this year.
While rig counts in the Marcellus have decreased in the past two years, improved efficiency and a renewed focus on core sub-plays have stimulated growth. Wood Mackenzie raised its Marcellus Shale gas production forecast through 2020 from 14 billion cubic feet equivalent per day to 20 billion cubic feet equivalent per day. The Marcellus will soon account for 25% of total U.S. shale gas supply, the researchers said.
The Energy Information Administration said in June U.S. natural gas production would hit an all-time high for the fourth straight year in 2014 due to new midstream projects unleashing supplies in the Marcellus. Several midstream firms announced new Marcellus-related projects this month, including PennEast Pipeline Co., Columbia Pipeline Group and MarkWest Energy Partners.
SEE ALSO: Utica gas production has jumped eightfold since 2012
Photo: Ruhrfisch/Wikipedia
