Though many states in the Mid-Atlantic region are beginning to develop their Marcellus ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock.ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. is one of the most highly productive types of sedimentary rock whose density provides tight stores forhydrocarbon reserves below. Marcellus ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. is a rock formationA body of earth material with distinctive and characteristic properties. running through about two-thirds of Pennsylvania, and areas of New York and West Virginia. Geologists estimate that there is a large enough natural gas reserve within the shaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. to power the United States for one to eight years. Gas resources, it is likely that none will surpass Pennsylvania as the leader in production. The necessary equipment, wells, pipelines and other operating systems are already in place in PA, and it would prove to be an enormous cost to set up the same level of operations in other states. Fadel Gheit, an oil and gas analyst with Oppenheimer & Co. in New York City, commented on the topic saying, “The industry will always stay with what they’ve got.”
Not only is the physical system well established in Pennsylvania, but the regulations and operational procedures are also up and running. The fight continues in New York as a moratorium is still in effect for the controversial drilling technique known as horizontal fracturingRefers to a method used by producers to extract more natural gas from a well by opening up rock formations using hydraulic or explosive force.—or “frackingRefers to a method used by producers to extract more natural gas from a well by opening up rock formations using hydraulic or explosive force..” Although North Carolina has recently passed Senate Bill 820 (a controversial bill that would allow frackingRefers to a method used by producers to extract more natural gas from a well by opening up rock formations using hydraulic or explosive force. in the state) through an important legislative committee, the expanse of the reserves in North Carolina is much smaller than in PA. The regulations that NY and NC will inevitably impose are likely to be much tighter than those that already exist in PA.
In April, Bentek Energy reported that PA was leading the industry by producing 5.3 billion cubic feet of gas per day, with West Virginia in second producing 1.5 billion cubic feet. Pennsylvania is so far ahead in production that, according to another study done by Bentek Energy, there are enough partially drilled wells in PA that if no new wells were drilled for the next 16 months, production would still increase by 31% as these partial wells are hooked up. Associated Press tells us that in the last four years, over 2,000 wells were drilled, but not completed. It is vastly cheaper for a company to invest in these drilled wells and collect gas, than to drill new ones.
Furthermore, western Pennsylvania is soon to be the home of a massive petrochemical “cracker” plant that will convert liquid natural gasA naturally occurring mixture of hydrocarbon and non-hydrocarbon gases beneath the earth’s surface – often in association with petroleum., or “wet gasNatural gas that contains natural gas liquids, which are heavier than gaseous methaneMethane, commonly known as natural gas is the most common hydrocarbon gas. It is colorless and naturally odorless, and burns efficiently without many by products.. Some of these, such as propane, butane, pentane, hexane, and heptane, may come out of the well in liquid form or may need to be processed. The Marcellus shaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. gas in Washington County has been described as a wet gas. Natural gas liquids are considered valuable by-products of natural gas processing.” into other industrial and consumer products, such as plastics. PA’s dominance in the Marcellus ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock.ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. is one of the most highly productive types of sedimentary rock whose density provides tight stores forhydrocarbon reserves below. Marcellus ShaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. is a rock formationA body of earth material with distinctive and characteristic properties. running through about two-thirds of Pennsylvania, and areas of New York and West Virginia. Geologists estimate that there is a large enough natural gas reserve within the shaleA fine grained sedimentary rock composed mostly of consolidated clay or mud. Shale is the most frequently occurring sedimentary rock. to power the United States for one to eight years. industry is likely to continue for at least a few more years, and the state will continue to reap the profound economic benefits. In his conversation with Associated Press, Fadel Gheit added that “for many companies, there’s less risk sticking with a state—and with regulations—they know.”
