Our focus is to develop and implement strategies that are practical, sustainable and allow organizations to achieve their full potential. Our consultants have long histories of working closely with senior executive teams of firms of all sizes to help their companies not only be successful, but achieve performance that stands out relative to peers.
.
Marcellus-Utica-Upper Devonian
===========================================================================================================================================================

The large Marcellus shale gas accumulation is a mix of dry and wet gas (see the map below, "Marcellus Utica Play Areas"). The most prolific dry gas part of the play is in northeastern Pennsylvania, while the wet gas region is in southwestern Pennsylvania. The four activity maps, listed under, "Evolution of Marcellus-Utica Drilling Activity Over Time", illustrate that much of the initial Marcellus drilling was for dry gas. Infrastructure limitations, especially the initial lack of NGL processing capacity, limited development in the wet gas portion of the play. However, between increased processing capacity and lower natural gas prices, activity in sw PA has increased substantially over the past 2 1/2 years. In addition, the Utica play in eastern Ohio has emerged as a viable wet gas play, as has the Upper Devonian, which overlies the Marcellus throughout most of sw PA.

Selected North American Tight Oil and Shale Gas Plays
Selected North American Tight Oil and Shale Gas Plays Map
Click Image for Larger Version
Marcellus-Utica Play Areas

 Click Image for Larger Version
Marcellus: Regional Terrain Map with Contours and Play Outline

 Click Image for Larger Version
 
Marcellus:Structure Map
Marcellus:Structure Map
Click Image for Larger Version
Rotatable 3D Structure Map:  Investigate the Marcellus structure map, as presented to the left in an interactive manner using a standard browser. (Can use a standard browser with mouse to rotate the map).

Rotatable 3D Structure Map with Wells:  Investigate the Marcellus structure relative to Marcellus wells. (Can use a standard browser with mouse to rotate the map).
Marcellus Thickness Map
Rotatable 3D Thickness Map:  Investigate the Marcellus thickness (isopach) map, as presented to the left in an interactive manner using a standard browser. (Can use a standard browser with mouse to rotate the map).

Rotatable 3D Thickness Map with Wells:  Investigate the Marcellus isopach relative to Marcellus wells. (Can use a standard browser with mouse to rotate the map).

===========================================================================================================================================================

Marcellus, Utica, and Upper Devonian Well and Operator Economics

The ECG group has used its proprietary economics program, ECG Oil and Gas Econ Insight, to assess the economics of the primary producing areas in the Marcellus, Utica, and Upper Devonian. The program uses what ECG believes to be one of the most advanced shale play production modeling tools in the industry to forecast three product streams (natural gas, condensate, and NGL), and value each stream separately compared to the capital, operating, and overhead costs necessary to develop and produce the resource. As one might expect, the economics vary considerably, depending on the operator, production profile, and ultimate recovery of gas, condensate, and NGL. However, CAPEX cost on a $/mcfe basis vary to a surprising degree across the play for wells of similar total depth. This variation is much more than observed for other shale plays , and is key to understanding how the economics vary between operators.

===========================================================================================================================================================

Marcellus Production Volumes

 

Marcellus Area Gas Production
Marcellus Area Gas Production
Click Image for Larger Version
Utica Area Gas Production per the EIA
Utica Area Gas Production per the EIA
Click Image for Larger Version
US Natural Gas - Marcellus, Utica, and Eagle Ford Breakout
US Natural Gas - Marcellus, Utica, and Eagle Ford Breakout
Click Image for Larger Version
Estimated Pennsylvania and West Virginia Marcellus Gas Production
Estimated Pennsylvania and West Virginia Marcellus Gas Production
Click Image for Larger Version
Marcellus Rate and Recovery Performance Overtime (Dry Gas)

Click Image for Larger Version
If need details on rate and ultimate recovery, please send us an e-mail.
What is obvious is that a large part of the production growth shown on the previous two slides is due to improving technology and better understanding of the reservoir.  The figures to the left clearly illustrates the positive impact on rate due to these factors experienced by two Marcellus operators.   
   

 

==========================================================================================================================================================

Marcellus Area Drilling Activity
(includes Utica and Upper Devonian)


The four activity maps presented below indicate that the drilling footprint for the three plays (Marcellus, Utica, and Upper Devonian) is expanding, especially into northern West Virginia, and eastern Ohio. It is likely this broadening of activity will also deepen as NGL processing capacity undergoes a massive expansion in the tri-state area (northern West Virginia, eastern Ohio, and southwestern Pennsylvania) between 2012-2014.

Evolution of Marcellus-Utica Drilling Activity Over Time

Marcellus-Utica Drilling Activity
(Raw data only.  Rig counts have not been filtered for depth, or well geometry)
Reported Drilling Activity: July 25, 2008
Marcellus-Utica Drilling Activity
(Raw data only.  Rig counts have not been filtered for depth, or well geometry)
Reported Drilling Activity: June 17, 2011
Marcellus-Utica Drilling Activity
(Raw data only.  Rig counts have not been filtered for depth, or well geometry)
Reported Drilling Activity: November 29, 2013
Marcellus-Utica Drilling Activity
(Raw data only.  Rig counts have not been filtered for depth, or well geometry)
Reported Drilling Activity: November 28, 2014

===========================================================================================================================================================

Marcellus Operators and Rig Count Volumes (as of late 2012)

List of operators recently reported as active in the Marcellus per service company reports. In addition to the operator, the approximate number of rigs drilling for that operator in the Marcellus are included. Note, this rig count is total number as reported by the service firm, and does not differentiate between shale or other formation types, or horizontal vs vertical well geometries, or other segmentation categories.

ANADARKO E & P 4
ANTERO RESOURCES 12
ATLAS RESOURCES 1
CABOT 4
CABOT OIL & GAS 1
CARRIZO O & G 2
CHESAPEAKE ENERGY 5
CHEVRONTEXACO 6
CHIEF O & G 2
CITRUS ENERGY CORP 2
CNX GAS CO LLC 3
EOG RESOURCES 1
EQT 3
EXCO RESOURCES 1
GRENADIER 1
INFLECTION ENERGY 1
JAY-BEE PROD 1
PA GENERAL ENG 1
PENNECO 1
R E GAS DE 1
RANGE RESOURCES 7
RICE DRILLING 1
SENECA RES 3
SHELL WESTERN E & P 6
SOUTHWESTERN ENERGY 6
STONE ENERGY 3
TALISMAN ENERGY 1
TANGLEWOOD O & G 1
VANTAGE OIL 1
WPX ENERGY 2
XTO 4

E&P News and Information

Upstream Online

Rigzone

Energy365

Alexander's
Oil and Gas News

Schlumberger
Oil and Gas News

World Oil

OIl and Gas Journal

Scandinavian
Oil and Gas Magazine

Hart E&P

International and National
Energy Agencies

International Energy Agency
Oil Market Report

Energy Information Agency- US

Department of Trade and
Industry -UK , Oil

Norwegian Petroleum
Directorate-Norway

National Energy
Board-Canada

Pemex

Ministry of Industry and
Energy-Russia

E&P Project Information

Hydrocarbon Technology

Offshore Technology