Marcellus (PA) – update until August 2016


This interactive presentation contains the gas (and a little oil) production from horizontal wells in the Marcellus (Pennsylvania). Production until August 2016 is included, from 6939 horizontal wells that started production since 2010. At the end of next month, when Ohio releases its quarterly production data, I will present another update from both these states together. I also aim to add West Virginia to these Appalachia updates, once it releases its 2016 annual production data (it only releases production data annually).

There appears to be a rather big drop in gas production in August. The drop in production can be mostly attributed to a drop in legacy production, as the number of newly producing wells in August (57) was higher than in the couple of months before. I can’t rule out yet that part of the drop can also be explained by incomplete reporting for August.

Turning to the “Well quality” tab, we can see that well productivity of 2016 wells is so far very similar as 2014 & 2015 vintages, on average.

Concerning the number of DUCs in PA: I now removed DUCs that were spud more than 3 years ago. The actual status of those wells is not so clear, and I consider it unlikely that these are brought online any time soon. This action brings my number of DUCs closer to the estimate of the EIA.

Around the mid of next week, I plan another update on the Niobrara basin (CO & WY).

For this presentation, I used data gathered from the following sources:

  • Pennsylvania DEP

====BRIEF MANUAL====

The above presentation has many interactive features:

  • You can click through the blocks on the top to see the slides.
  • Each slide has filters that can be set, e.g. to select individual or groups of operators. You can first click “all” to deselect all items. You have to click the “apply” button at the bottom to enforce the changes. After that, click anywhere on the presentation.
  • You can switch between different products (e.g. natural gas, or oil), by using the “Product” selection, present in all tabs.
  • Tooltips are shown by just hovering the mouse over parts of the presentation.
  • You can move the map around, and zoom in/out.
  • By clicking on the legend you can highlight selected items, and include or exclude categories.
  • Note that filters & selections have to be set for each tab separately.
  • The operator who currently owns the well is designated by “operator (current)”. The operator who operated a well in a past month is designated by “operator (actual)”. This distinction is useful when the ownership of a well changed over time.
  • If you have any questions on how to use the interactivity, or how to analyze specific questions, please don’t hesitate to ask.