Friday, August 14, 2015
Since January 2012, natural gas production in the Marcellus and Utica regions has accounted for 85% of the increase in natural gas production reported in the Energy Information Administration’s (EIA) “Drilling Productivity Report” and has driven recent growth in total U.S. natural gas production. The productivity of natural gas wells in the Marcellus Shale and neighboring Utica Shale is steadily rising because of ongoing improvements in precision and efficiency of horizontal drilling and hydraulic fracturing occurring in the regions, EIA reports. Further, the agency’s latest data show that natural gas produced from U.S. shale basins now accounts for 56% of U.S. dry gas production. Collectively, shale gas production from the Marcellus and Utica regions increased by 12.6 Bcfd from January 2012 to June 2015, making these regions the driving force behind overall U.S. natural gas production growth.
The “Drilling Productivity Report” identifies trends in total production and rig productivity, expressed as new-well gas production per rig. The July edition noted that average new-well gas production per rig in the Marcellus region was 3.2 MMcfd of natural gas in January 2012. In July 2015, new-well gas production per rig increased to 8.3 MMcfd. This trend corresponded with an overall increase in the amount of natural gas produced in the Marcellus region during the same period. The report indicates that the Marcellus produced an estimated 6.3 Bcfd of natural gas in January 2012, increasing to 16.5 Bcfd in July 2015.
The Utica region also experienced significant gains in rig productivity and production. In January 2012, new-well gas production per rig averaged 0.31 MMcfd. July 2015 new-well gas production per rig was 6.9 MMcfd. The EIA report also indicates that the region’s total gas production increased rapidly over the same period. Production in July 2015 was nearly 18 times higher than in January 2013—2.6 Bcfd and 0.15 Bcfd, respectively. Increases in natural gas production from these regions occurred because of many factors, including greater use of advanced drilling techniques; an increased number of stages used in hydraulic fracturing operations; increased use of techniques such as zipper fracturing, or simultaneous fracturing of individual stages of two parallel horizontal wells; and use of specific components during well completion that aid in increasing fracture size and porosity of the targeted geologic formation.
The “Drilling Productivity Report” provides a month-ahead projection of both oil and natural gas production for the seven most significant shale formations in the U.S. Although the regions in the report are grouped according to the name of the prominent shale formation, it analyzes all drilling and production within each geographic area. In practice, this means natural gas production activity in the Marcellus region, which includes Pennsylvania and West Virginia, encompasses not only the Marcellus formation, but also portions of the Utica Shale and conventional formations that lay beneath the states. The Utica report region, which includes resources beneath Ohio, includes production from the bulk of the Utica formation, as well as production from the Point Pleasant Shale formation and, to a lesser extent, conventional resources.
The “Drilling Productivity Report” identifies trends in total production and rig productivity, expressed as new-well gas production per rig. The July edition noted that average new-well gas production per rig in the Marcellus region was 3.2 MMcfd of natural gas in January 2012. In July 2015, new-well gas production per rig increased to 8.3 MMcfd. This trend corresponded with an overall increase in the amount of natural gas produced in the Marcellus region during the same period. The report indicates that the Marcellus produced an estimated 6.3 Bcfd of natural gas in January 2012, increasing to 16.5 Bcfd in July 2015.
The Utica region also experienced significant gains in rig productivity and production. In January 2012, new-well gas production per rig averaged 0.31 MMcfd. July 2015 new-well gas production per rig was 6.9 MMcfd. The EIA report also indicates that the region’s total gas production increased rapidly over the same period. Production in July 2015 was nearly 18 times higher than in January 2013—2.6 Bcfd and 0.15 Bcfd, respectively. Increases in natural gas production from these regions occurred because of many factors, including greater use of advanced drilling techniques; an increased number of stages used in hydraulic fracturing operations; increased use of techniques such as zipper fracturing, or simultaneous fracturing of individual stages of two parallel horizontal wells; and use of specific components during well completion that aid in increasing fracture size and porosity of the targeted geologic formation.
The “Drilling Productivity Report” provides a month-ahead projection of both oil and natural gas production for the seven most significant shale formations in the U.S. Although the regions in the report are grouped according to the name of the prominent shale formation, it analyzes all drilling and production within each geographic area. In practice, this means natural gas production activity in the Marcellus region, which includes Pennsylvania and West Virginia, encompasses not only the Marcellus formation, but also portions of the Utica Shale and conventional formations that lay beneath the states. The Utica report region, which includes resources beneath Ohio, includes production from the bulk of the Utica formation, as well as production from the Point Pleasant Shale formation and, to a lesser extent, conventional resources.
