After a long moratorium on Marcellus Shale drilling in New York, a variety of proposed regulations and local bans on drilling could render millions of leased acres as worthless.
An AP article reports that drillers produced about $4.7 billion worth of natural gas from the Marcellus Shale in Pennsylvania and West Virginia during 2011.
Several major natural gas drillers have developed a set of standards for hydraulic fracturing in the Appalachian Basin. The standards recommend practices for drilling, well design, water use, equipment use and public outreach.
“The chances of rogue fractures due to shale gas fracking operations extending beyond 0.6 kilometres from the injection source is a fraction of one percent, according to new research led by Durham University. The analysis is based on data from thousands of fracking operations in the USA and natural rock fractures in Europe and Africa.” Quoted from the Durham University press release.
Although the natural gas boom in the United States lured many small and large oil companies to invest heavily in the shale plays, Chevron concentrated on oil and didn’t touch natural gas until it recently acquired Atlas Energy.
“The law provides for the imposition of a drilling impact fee and the expenditure of the funds generated by that impact fee to local and state purposes specifically outlined in the law. The law also contains a mechanism as to how the fees shall be distributed. A significant portion of the fees generated will be used to cover the local impacts of drilling while several of state agencies will also receive funding for a variety of other purposes.” Quote from the Pennsylvania Public Utility Commission.
An article on TheIntelligencer.net website explains how the geography of natural gas drilling in West Virginia is shifting from the dry gas areas that consists of most of the state to a few counties in the northern panhandle where wells yield natural gas liquids.
“USGS scientists discuss the opportunities and impact associated with hydraulic fracturing. Doug Duncan, associate coordinator for the USGS Energy Resources Program, addresses the increasing role that unconventional oil and gas resources play in the nation’s petroleum endowment. USGS hydrologist Dennis Risser discusses some of the major water availability and quality challenges associated with natural gas development, with a focus on the Marcellus Shale in Pennsylvania. Bill Leith, associate coordinator the USGS Hazards Program, concludes by discussing the potential connection between disposal of waste fluids from hydraulic fracturing and earthquakes.” Quoted from the USGS video release.
Fracking the Marcellus Shale with propane instead of water may be allowed in New York and one company is exploring the possibility of using the method.
The Maryland House approved a bill that would create a 7.5% severance tax on “all natural gas, natural gas liquids, and other fluid hydrocarbons, not defined as oil, which are produced from a natural reservoir.”
Seven communities in southwestern Pennsylvania are suing the Commonwealth of Pennsylvania because they want to control natural gas drilling in their zoning districts.
“Spectra Energy has received conditional environmental approval from Federal Energy Regulatory Commission staff on its proposed New Jersey-New York Expansion project. [...] The system, which would be the first major natural gaspipeline to reach New York City in 40 years.” Quoted from the Energy Information Administration.
An article titled “Marcellus Shale Parallel Universe” explores the impact of different approaches to natural gas development experienced in Pennsylvania and New York.
A $1 billion pipeline has been proposed that will deliver Marcellus Shale gas from northern Pennsylvania to markets in Philadelphia, Baltimore and Washington, DC.
“Hydraulic fracturing of shale formations to extract natural gas has no direct connection to reports of groundwater contamination [...] many problems ascribed to hydraulic fracturing are related to processes common to all oil and gas drilling operations, such as casing failures or poor cement jobs.” Quoted from the University of Texas at Austin press release.
The EIA Natural Gas Weekly Update has an interesting graph that tracks the month-by-month dry gas production growth from various shale gas fields in the United States. For example, it shows that production from the Haynesville Shale started to increase significantly in early 2009 and continued until today the Haynesville is the most prolific dry gas producer.
This video and article feature some of the positive impacts that natural gas drilling in the Marcellus Shale has brought to the economy of Washington County, Pennsylvania and neighboring areas.
The Pennsylvania Department of Environmental Protection has created interactive reports that allow citizens create reports that summarize oil and gas production information, permits issued, drilling commence date, county data, operator specific data, as well as inspections, violations and enforcement actions.
An article on the ABC News website reports on how eminent domain is being used in Pennsylvania by a natural gaspipeline company to acquire missing pieces of a pipeline right-of-way.
National Public Radio has a podcast titled: “Is The Booming Natural Gas Industry Overproducing?”. It explores how natural gas companies are cutting back on production, filling underground storage and moving their rigs out of the dry gas areas.
An article published by the Oil and Gas Journal shows that methane was ubiquitous in shallow groundwater prior to oil and gas drilling in Susquehanna County, Pennsylvania.
Someone must have blamed the Virginiaearthquake of August 23 on hydraulic fracturing. An extensive article in the Daily Press explains why that is impossible.
Many property owners are very surprised when the royalties that they receive from a natural gas well on their property decline sharply. They are learning about production decline curves.
As environmental regulations hasten the closure of coal-fired power plants American Electric Power plans to build a 1bcf/day pipeline to deliver gas from wells in the Marcellus and Utica Shales.
“This study examines how several key unexplored aspects of Marcellus Shale natural gas development in Pennsylvania will affect the overall economic impact occurring in the Commonwealth. Where leasing
and royalty dollars are actually going, and how they are being spent, has not been examined in previous economic studies.” Quoted from the report’s abstract.
An article on the Boston.com website explores possible developments related to the Marcellus Shale in 2012. A new lease environment, geographic shifts in activity, price directions and more.
Maryland’s Marcellus Shale Safe Drilling Commission released a study that recommends a state severance tax on natural gas produced from the Marcellus Shale.
Many utilities that supply natural gas to consumers in Pennsylvania are using gas from as far away as Canada, the Gulf of Mexico or west of the Mississippi River while gas from the Marcellus Shale is just a little over a mile down. They are locked into long-term contracts. UGI Central Penn Gas is making their first direct connection to Marcellus Shale gas, cutting long distance transportation fees.
An article on the PennLive.com website explores the diversity of jobs associated with development of the Marcellus Shale in Pennsylvania. Sue Mukherjee a directory with the Pennsylvania Department of Labor and Industry says: “The fastest 12 growing occupations in Pennsylvania are all directly related to Marcellus Shale.”
An article in Crain’s New York Business titled “Natural-gas drilling is a great divider” explores why natural gas drilling has enormous support and enormous opposition in the state of New York.
In many parts of the Marcellus Shale gas play local residents are disappointed to see so many workers from over a thousand miles away getting high-paying jobs while local unemployment rates are very high. Letters similar to this one have been published in newspapers across the area underlain by the Marcellus Shale and other shales that produce natural gas..
Some industry experts believe that onshore natural gas leasing is winding down and major plays like the Marcellus and Utica are unlikely to be found in the future.
An article in the New York Times reviews some potential rewards and problems that occur when a landowner decides to lease his property for oil and and gas development.
The folks at MyTopo.com are now printing supersized topo maps – large enough make a huge 5′ x 8′ (or 8′ x 5′) map that will look fantastic on the wall of your office, conference room, lobby, cabin or den. These maps are custom-centered on any location that you pick using their online map-making tool. Lots of smaller sizes are also available.
We are affiliates of MyTopo.com and receive a commission on sales.
Some local governments would like to have greater control over where, when and how natural gas drilling can be done in their areas of jurisdiction. This podcast explores the division of regulation between state and local governments in Pennsylvania.
The Marcellus Shale Coalition website has an article that provides safety advice for people who will be hunting in areas where natural gas drilling is taking place.
An article on the PittsburghLive.com website explains how regulations and costs of doing business in neighboring states can stimulate or deter the development of a resource such as natural gas. Not mentioned in the article is how a moratorium on Marcellus Shale drilling moved drilling out of New York and into Pennsylvania.
The Gerald R. Ford School of Public Policy at the University of Michigan conducted a public opinion poll on “Fracking for Natural Gas”. One of their key findings:
“While fairly divided on this matter, more Pennsylvanians believe that natural gas drilling has thus far provided more benefits than problems for Pennsylvania. A larger number anticipate greater future benefits than problems for the state.”
A Post-Gazette article summarizes the findings and links to a PDF copy of the study.
The Delaware River Basin Commission will vote on a new set of rules for natural gas drilling within the basin. If they are approved a moratorium on drilling in the basin will be lifted.
The Citizens Marcellus Shale Commission published a report titled: Marcellus Shale: A Citizens View. It contains numerous recommendations that include: creating state revenue from natural gas drilling activity, preserving citizen property rights, protecting natural resources and more.
Local governments in Pennsylvania have passed zoning ordinances that limit where drilling can occur. Range Resources, a leading shale gas drilling company is making one of the first challenges to these ordinances.
Thousands of people across the United States have signed leases that give energy companies the right to drill on their land. However, many of these properties have mortgages that prohibit the property owner from entering into a mineral lease.
Parts of the Marcellus Shale and Utica Shale contain worthy amounts of ethane which is a valuable feedstock for the plastics industry. Will it be shipped by pipeline to distant manufacturers or will local manufacturing industries develop?
Dominion Resources is seeking permission to condense natural gas produced from the Marcellus Shale into LNG (liquefied natural gas) for export from their Cove Point facility at Lusby, Maryland.
Welcome to Geology News!
Every day you can find links to several earth science news topics right here.
Bookmark this page and visit often. You can also receive our news for free by RSS feed or in a daily email message.
Advertising
Popular From Geology.com
Marcellus Shale: The most overlooked resource in the eastern United States!
Diamonds from Coal? Diamonds form under a variety of conditions that rarely involve coal as a source of carbon.
Mineral Rights / Oil & Gas: Who owns the minerals under your land? Have they been sold? Can someone mine without permission?
The Many Uses of Gold: Learn how the unique properties of gold make it extremely suited for a large number of industrial uses.
