Utica Shale
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Throughout the early years of Marcellus Shale development, there were rumblings of 'deeper oil and gas reserves' below the Marcellus layer. People heard talk of the Trenton Black River, yet by 2012, most of the rumblings had turned almost exclusively to the Utica Shale. The Utica is approximately 70-million-years older than the Marcellus; 400 million years old vs. 470 million years old, as we see on the shale gas plays page. |
In early October 2012, the United States Geological Service (USGS) released its first assessment of the amount of shale gas resources in the Utica Shale, along with a map showing the location of oil and gas assessment units (AU) in the Appalachian Basin. USGS estimates the Utica Shale contains 38 TCF of natural gas, 940 MMB of oil and 9 MMB of natural gas liquids. Those numbers mean: 38 trillion cubic feet of natural gas, 940 million barrels of oil and 9 million barrels of natural gas liquids such as ethane, propane and butane. |
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As prices for 'dry' natural gas (methane)
fell in excess of 75% from the early Marcellus Shale production
years, the location and value of 'wet' gas liquids came more into
focus for exploration and production (E&P) companies who wished to remain
profitable. Some E&P companies indicated they could not continue to
produce dry natural gas if the price remained at 2012 levels (under $3.00).
These low prices created a new leasing focus and production move from dry areas of the Marcellus
Shale to
the wetter areas, primarily around the tri-state area of southwestern
Pennsylvania, southeastern Ohio and the panhandle of West Virginia.
Eastern
Ohio was the focal point for most Utica Shale 'buzz' in 2012. |
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Image credit: U.S. Geological Survey |
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Indeed, the expanding play for more
valuable natural gas liquids has revealed itself in the plans of many
oil and gas companies,
midstream companies and pipeliners, with talk and
construction of
ethane crackers,
cryogenic plants, and
pipelines to move
gas liquids out of the Marcellus and Utica Shale area to the Philadelphia
port,
Gulf Coast and southern Canada. |
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