The Marcellus Shale | December 2021

Field Overview

The Marcellus Shale is the largest gas play onshore in the US. Located in the Northeast, it supplies the high-demand markets along the East Coast. Most of the basin’s gas is produced through unconventional methods, while the little oil produced is mostly by conventional means. Some of the top formations include the Onondaga and the Huntersville.

State Drilling Statistics

Active Drilling Rigs in Basin- 29 (-2)
Total Rigs in Pennsylvania- 19 (-3)
Total Rigs in United States- 586 (+ 17)
Total U.S. Rigs 53% YTD

State Permitting Data
Permits Approved – 85

Marcellus Top Producers
Top Producer By BOE – Chesapeake

Basin Highlights

Permits to Drill New Shale Wells in PA Hit 13-Year Low in November

34 permits for wells were issued in November 2021, the lowest amount since November 2008, nearly 13 years prior. The shale boom of 2010 peaked in December with a total of 402 permits issued in the span of one month. The top producers in the Marcellus kept spending and drilling low while bringing in cash on the back of higher commodity prices.

Utica/Marcellus Gas Production Expected to Increase in January

The U.S. Energy Information Administration released a report on the Marcellus and Utica shale showing an increase in production to kick-off 2022. According to the EIA’s estimate, a 78 million cubic feet per day increase can be expected in the two shale regions. Hilcorp Energy Co. has been busy filing applications to deepen existing wells and drill new ones in Columbiana County. EAP Ohio has also filed applications for similar reasons. Not only does the EIA expect gas production to increase in the Appalachian region, but oil production too, by an estimated 1,000 barrels a day in January. 

Pa. releases final rule to cut methane leaks from existing oil and gas well sites

A Pennsylvania ​​methane-reduction strategy took a step forward when regulators finalized a new set of rules in early December. The new rules will require operators to perform four leak checks per year per well on those considered low-producing and replace old hardware that doesn’t comply with new low-leak standards. Storage tank standards will also become stricter under the new rules which require tanks to meet higher emissions standards. 

Operators with Most Permits in PA

Top Producers By Gas

Change	Rank	Company	Gas Production (mmscf) (7/21)
+1	1	CHESAPEAKE	1101.6
	2	COTERRA ENERGY	911.3
	3	RANGE RESOURCES	701.1
-3	4	EQT	686.9
	5	RICE DRILLING	560.2

Rig Count

PA Oil Production

PA Natural Gas Production

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The information contained in this newsletter is provided by RARE
PETRO Engineering, PLLC via the following sources unless otherwise
noted:

www.eia.gov
www.drillinginfo.com
www.bhge.com
RARE Petro Analytics