Marcellus Shale Well Costs andMarcellus Shale Well Costs andProductionProduction
UMRA Watersheds Group MeetingUMRA Watersheds Group MeetingDecember 3, 2010December 3, 2010Morgantown, WVMorgantown, WV
Katharine LeeKatharine Lee AvaryAvaryPetroleum GeologistPetroleum Geologist
Morgantown, WVMorgantown, [email protected]@gmail.com
UnitsUnits
►►McfMcf= One thousand cubic feet= One thousand cubic feet►►MMcfMMcf=One million cubic feet=One million cubic feet►►BcfBcf=One billion cubic feet=One billion cubic feet
►►What do these mean to you? I use 1What do these mean to you? I use 1--22McfMcf/month in the summer for cooking and/month in the summer for cooking andwater heating and 25water heating and 25--3030 McfMcf/month during/month duringthe winter heating season.the winter heating season.
From: http://fuelfix.com/energywatch/2010/11/29/houston-nat-gas-bills-may-drop-20-percent/
From: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9Njc1NzZ8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
From: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9Njc1NzZ8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
From: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9Njc1NzZ8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
From: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9Njc1NzZ8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
From: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9Njc1NzZ8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
From: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9Njc1NzZ8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
From: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9Njc1NzZ8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
From: http://files.shareholder.com/downloads/EQT/1072302134x0x416551/0456448f-369a-4f01-89d0-3a42dfa0acec/November%20-%20Analyst%20Presentation.pdf
From: http://files.shareholder.com/downloads/EQT/1072302134x0x416551/0456448f-369a-4f01-89d0-3a42dfa0acec/November%20-%20Analyst%20Presentation.pdf
From: http://files.shareholder.com/downloads/EQT/1072302134x0x416551/0456448f-369a-4f01-89d0-3a42dfa0acec/November%20-%20Analyst%20Presentation.pdf
From: http://files.shareholder.com/downloads/EQT/1072302134x0x416551/0456448f-369a-4f01-89d0-3a42dfa0acec/November%20-%20Analyst%20Presentation.pdf
From: http://files.shareholder.com/downloads/EQT/1072302134x0x416551/0456448f-369a-4f01-89d0-3a42dfa0acec/November%20-%20Analyst%20Presentation.pdf
From: http://files.shareholder.com/downloads/EQT/1072302134x0x416551/0456448f-369a-4f01-89d0-3a42dfa0acec/November%20-%20Analyst%20Presentation.pdf
WV DEP Office of Oil & Gas WellWV DEP Office of Oil & Gas WellStatus 11/30/2010Status 11/30/2010
Abandoned 12,211
Active 58,797
Never Drilled 12,114
Plugged 20,959
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Aband
oned
Aband
oned/O
rdere
d
Aband
oned/P
lugged
Active
Drilling
Futur
e Use
Mine Ven
t Well
Never
Drilled
Never
Issued
Plugged
Under
Con
struc
tion
Num
ber o
f Wel
ls
Total: 105,872 wellsFrom: http://apps.dep.wv.gov/oog/wellsearch_new.cfm
WV DEP Office of Oil & Gas WellWV DEP Office of Oil & Gas WellType 11/30/2010Type 11/30/2010
0
10,000
20,000
30,000
40,000
50,000
60,000
Brinedisposal
Commercialbrine
disposal
Coalbedmethane
Gas Gob House gas Mine vent Observation Oil Secondaryrecovery
Solutionmining
Storage Water Supply
Num
ber o
f wel
ls
number of w ells number of active w ells
Gas 56,645
Oil 4,871Total 67,148 wells
From: http://apps.dep.wv.gov/oog/wellsearch_new.cfm
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Year
Num
ber o
f per
mits
issu
ed
WV DEP Office of Oil & Gas WellWV DEP Office of Oil & Gas WellNumber of Permits* Issued per yearNumber of Permits* Issued per year
as of 11/30/2010as of 11/30/2010
* Permits for all types of well work including drilling new wells, and deepening,fracturing or plugging existing wells
From: http://apps.dep.wv.gov/oog/wellsearch_new.cfm
Marcellus wells permitted in WVMarcellus wells permitted in WV
0
100
200
300
400
500
600
700
800
900
pre-2006 2006 2007 2008 2009 2010-1Q
Source: WVGES WVDEP OOG 347 permitted YTD
Annual and Cumulative WV MarcellusAnnual and Cumulative WV MarcellusGas ProductionGas Production
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
2005 2006 2007 2008 2009
Year
Annu
al P
rodu
ctio
n, M
cf
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
Cum
ulat
ive
Prod
uctio
n, M
cf