2015 Marcellus and Utica Shales Playbook
The Marcellus and Utica Shales Report
The Marcellus-Utica 2015 Playbook provides a comprehensive report on topics addressing the plays everyone is talking about and delivers answers to essential questions on reservoirs, active operators, economics, key technologies and infrastructure issues. Includes a full-color 24" x 36" wall map with detailed visualization of wells cumulative production and infrastructure with production forecast charts.
Table of Contents
04 | OVERVIEW
In 2014 operators were drilling wells quickly. With the industry downturn, they have the opportunity to drill them smarter.
16 | KEY PLAYERS
Marcellus, Utica Producers Take a Wait-and-see Approach
As some companies scale back operations amid the low-price environment, others plan their next steps in the play.
32 | TECHNOLOGY
Economics to the Forefront in the Marcellus-Utica
Operators and service companies continue to push the envelope to keep the resource play viable during the downturn.
42 | MIDSTREAM
Marcellus’ Midstream Growth Spurt
The Marcellus Shale, America’s most resilient natural gas play, is causing perpetual midstream growth to match its staggering production levels.
50 | PRODUCTION FORECAST
The Marcellus and Utica: Why Do They Matter?
Operators return their focus to the dry gas windows with attention to lowering costs and increasing efficiencies amid depressed prices.
57 | REFERENCES
Additional Information on the Marcellus-Utica Shales
For more details on the Marcellus-Utica shales, consult these selected sources.
Sample Page - Economics to the Forefront in the Marcellus-Utica
Weak commodity prices and the gloom of a protracted downturn in the U.S. oil and gas industry have cast a pall over markets across the Lower 48 where operators have either sought to plow through the trough, albeit with lower activity levels, or halt work all together until things improve. According to Baker Hughes, the U.S. land rig count stands at just under 900 rigs, down more than 1,000 units from this time last year and well off the 2008 peak of more than 2,000 active rigs. No region has shown much immunity to the downturn, including the resource-rich Marcellus-Utica in the northeastern U.S. Oil and gas prices looked to be on the rebound this spring, but the summer months have seen pricing back down once again, fueled by weaker demand in Asia and uncertainty in the Middle East.
The Marcellus rig count is hovering around 50 units, representing a 37% drop over the past 12 months. Lower activity has the prolific natural gas basin staring down its first decline in production since shale reserves began flowing from the area more than 10 years ago. A handful of producers have taken to shutting in production until better times return or at least until adequate infrastructure is in place to move resource out of the area. Those who are still active in the region have posted some stunning well results recently from the dry gas window of the Utica. EQT revealed in July that a Greene Country, Pa., well came on at an initial rate of 72.9 MMcf/d of natural gas during a 24-hour test. That result came on the heels of a far east Utica well in Westmoreland County, Pa., from Consol Energy that came on at about 65 MMcf/d. Those dizzying IPs are just the icing on the cake for the Utica, currently one of the nation’s most prolific basins. According to the Ohio Department of Natural Resources, the state’s 978 horizontal wells produced 5.5 MMbbl of oil and 221 Bcf of natural gas in second- quarter 2015. That represents a 20% jump in oil volumes and an almost 21% leap in natural gas flows over the first-quarter 2015 tally.
If operators need a bit more silver lining to the graying skies over the play consider the following. With activity reductions come cost reductions. Coupled with the innovations integrated into the play over the last decade, the result is lower well costs, even as operators reach out with longer lateral sections and increased frack stages per bore. Laterals reaching 10,000 ft are not unheard of. All of this increases drilling and completions costs, but in a depressed market, where service costs are down as much as 25% since year-end 2014, it becomes more affordable. Chesapeake boasted ...