HOUSTON, November 6, 2013 –Press Release
Improvements in drilling efficiency and well performance continue to drive production growth in the Marcellus Shale despite falling rig counts, according to new analysis by Wood Mackenzie. Growth has been so rapid that an estimated 1.4 bcfed of production is currently being restricted at the wellhead. This highlights both the tremendous potential of the play as well as the continuing infrastructure and gas pricing challenges that operators face. The latest in its series of North American key play reports highlights the Marcellus Shale, now the number one producing shale gas play in the world.
Wood Mackenzie has broken the Marcellus into 12 distinct sub-plays with varying well characteristics and economics. In general, initial production rates and estimated reserves per well have grown over time but results still vary both within and between sub-plays. “We estimate that average well breakevens range from $2.68/ mcf in the northeast core of the play, to over $8/mcf in some of the less established areas in central and northwest Pennsylvania”, said Matt Woodson, Upstream Research Analyst with Wood Mackenzie.