The Marcellus Shale | June 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 Onondaga and the Huntersville.
State Drilling Statistics (End of 7/9)
Active Drilling Rigs in Basin- 28
Total Rigs in Pennsylvania- 18
Total Rigs in United States- 479
Total U.S. Rigs up 86% YTD
State Permitting Data (End of June)
Permits Approved (PA) – 47
Marcellus Top Producers
Top Producer By BOE – EQT
Basin Highlights
Supreme Court Favors Pipeline
In a battle with New Jersey over land needed for a natural gas pipeline, the Supreme Court sided with a pipeline firm on Tuesday. The PennEast Pipeline Co. won 5-4 with the help of both liberal and conservative judges. The 116-mile pipeline will extend from Pennsylvania’s Luzerne County to New Jersey’s Mercer County. The Federal Energy Regulatory Commission gave PennEast a “certificate of public convenience and necessity” in 2018, allowing the project to proceed forward, but litigation ensued. In order to obtain state-controlled property for its project, the business went to court with New Jersey. PennEast maintained that the commission’s approval of its project gave it the right to sue New Jersey and employ eminent domain to take state-owned lands. The Supreme Court came to the same conclusion. When FERC provides a certificate of public convenience and necessity, federal law empowers the certificate’s holder “to condemn all necessary rights-of-way, whether owned by private parties or States,” wrote Chief Justice John Roberts for the majority. While industry celebrates a decision that establishes a strong precedent, environmentalist groups will still push to reverse the decision.
Community Funds From O&G Down
Many communities benefit from oil and gas production, but 2020 will limit just how much kickback will be received. Impact fees generated $146.3 million in 2020, according to the Pennsylvania Public Utility Commission. It’s the lowest figure since the impact charge was enacted about a decade ago. Impact fees brought in $200 million to Pennsylvania towns last year, down from $251 million the year before. The state’s Independent Fiscal Office predicted in January that the impact charge would bring in $144.5 million to state and municipal budgets, down 28% from last year and 42% from the year before. In a news release, Marcellus Shale Coalition president David Callahan said, “Pennsylvania’s natural gas tax continues to deliver important benefits for the entire commonwealth. Generating more than $2 billion since 2012, the impact tax is a successful policy for Pennsylvanians, local governments, environmental conservation programs, emergency response efforts and much more.”
Operators with Most Permits in PA
| Rank | Company | Permits Approved |
| 1 | Chesapeake | 7 |
| 2 | Cabot | 6 |
| 2 | Snyder Brothers | 6 |
| 4 | Curtis Oil | 4 |
| 4 | Olympus | 4 |
Top Producers By BOE (2021 cum)
| Rank | Company | YTD Gas Production (mcf) (as of 5/21) |
| 1 | EQT | 7,442,353 |
| 2 | Chesapeake | 7,097,118 |
| 3 | Cabot | 6,603,816 |
| 4 | Range Resources | 4,725,194 |
| 5 | Southwestern Energy | 3,956,211 |
Rig Count
PA Oil Production
PA Natural Gas Production
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PETRO Engineering, PLLC via the following sources unless otherwise
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www.eia.gov
www.drillinginfo.com
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