American Gas - May 2014 - (Page 19)
state watch
connecticut
maine
massachusetts
nebraska
pennsylvania
texas
DecaDes of Potential
maRCELLUS, Ny - marcellus shale will be the biggest driver of U.s. natural gas production over the
next few years, accounting for nearly a quarter of all U.s. volume by 2015, investment analyst morningstar
forecasts in its latest energy Observer report. supporting the outlook for robust growth is the significant
backlog of wells awaiting completion and tie-in in marcellus. in addition, the pace of infrastructure build-out
in the northeastern U.s. will also spark growth, with wet gas processing and takeaway pipeline capacity in
the region projected to rise more than 200 percent and 40 percent, respectively, through 2015, according
to morningstar. if demand keeps pace with supply over the next few years, as morningstar analysts expect,
prices should normalize between $5 and $6 per thousand cubic feet of natural gas. The marcellus shale
has 30 to 75 years of resource potential at current production rates, morningstar says. While growth is
likely to slow, the deposit is so large that even slight growth will be significant. morningstar conducted a
bottom-up analysis of nearly 4,500 wells in Pennsylvania and 1,000 wells in West Virginia, examining
initial production rates, production declines, and drilling and completion activity. -Gary James
MARCELLUS GROSS NATURAL GAS PRODUCTION SCENARIOS, 2009-15E3
Bull Case
Base Case
Bear Case
20,000
MMcf/d
15,000
10,000
5,000
2H-1H
09 10
2H
2010
1H
2011
2H
1H
2012
2H
1H
2013E
2H
1H
2014E
2H
1H
2015E
2H
alex rearDon
Source: Morningstar Energy Observer
may 2014 AmericAn GAs
19
Table of Contents for the Digital Edition of American Gas - May 2014
Contents
American Gas - May 2014
https://www.nxtbook.com/nxtbooks/aga/20151201
https://www.nxtbook.com/nxtbooks/aga/201411
https://www.nxtbook.com/nxtbooks/aga/201410
https://www.nxtbook.com/nxtbooks/aga/20140809
https://www.nxtbook.com/nxtbooks/aga/201407
https://www.nxtbook.com/nxtbooks/aga/201406
https://www.nxtbook.com/nxtbooks/aga/201405
https://www.nxtbook.com/nxtbooks/aga/201404
https://www.nxtbook.com/nxtbooks/aga/201403
https://www.nxtbook.com/nxtbooks/aga/201402
https://www.nxtbook.com/nxtbooks/aga/20141201
https://www.nxtbook.com/nxtbooks/aga/201311
https://www.nxtbook.com/nxtbooks/aga/201310
https://www.nxtbook.com/nxtbooks/aga/20130809
https://www.nxtbook.com/nxtbooks/aga/201307
https://www.nxtbook.com/nxtbooks/aga/201306
https://www.nxtbook.com/nxtbooks/aga/201305
https://www.nxtbook.com/nxtbooks/aga/201304
https://www.nxtbook.com/nxtbooks/aga/201303
https://www.nxtbook.com/nxtbooks/aga/201302
https://www.nxtbook.com/nxtbooks/aga/20131201
https://www.nxtbook.com/nxtbooks/aga/201211
https://www.nxtbook.com/nxtbooks/aga/201210
https://www.nxtbook.com/nxtbooks/aga/201208
https://www.nxtbook.com/nxtbooks/aga/201207
https://www.nxtbook.com/nxtbooks/aga/201206
https://www.nxtbook.com/nxtbooks/aga/201205
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https://www.nxtbook.com/nxtbooks/aga/201112
https://www.nxtbook.com/nxtbooks/aga/201111
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