Thursday, October 07, 2010

An Embarrassment Of Riches: Marcellus Shale

Tax rates be damned. Natural gas drillers (and the substantial investment) aren't going anywhere. Via Financial Times, the surprising news about the Marcellus Play:

As of August 1st, the Pennsylvania Department of Environmental Protection (DEP) required that Operators submit the 12 month production records for the dates beginning July 2009 and ending June 2010. After compiling and organizing the data, the DEP released the well production records for those companies which participated in the data submission and the results display some interesting and unique insights into why the Marcellus truly is different than the rest of the shales. An in depth review of the reported well production data shows that the Marcellus Shale appears to be behaving differently than the other shales, with decline rates now estimated at - 15% as opposed to prior view of around 60%. These results place the Marcellus wells in an entirely different category from those in other basins.

What say ye, Marcellus Shale Coalition?

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