The Marcellus Shale | October 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- 28 (
+2)
Total Rigs in Pennsylvania- 18 (-)
Total Rigs in United States- 550 (+22)
Total U.S. Rigs 83% YTD
State Permitting Data
Permits Approved (PA) – 93
Marcellus Top Producers
Top Producer By BOE – EQT
Basin Highlights
New York Denies Permits for Proposed Natural Gas-fired Power Plants
Environmental regulators in New York refused permits to build two natural gas-fired power plants on Oct. 27 as the state shifted its focus to renewable energy and energy efficiency in order to reach its greenhouse gas reduction objectives. NRG Energy Inc’s proposed Astoria gas turbine project in Queens and Danskammer Energy LLC’s proposed Danskammer repowering project near Newburgh on the Hudson River were both refused air emissions licenses by the New York State Department of Environmental Conservation (DEC). DEC stated: “Our review determined the proposed project does not demonstrate compliance with the requirements of the Climate Leadership and Community Protection Act.”
Chief Oil & Gas explores sale for more than $3 bln
According to persons familiar with the situation, Chief Oil & Gas LLC, the Appalachian exploration and production business created and controlled by Texas wildcatter Trevor Rees-Jones, is considering a deal that might value it at more than $3 billion, including debt. Chief Oil & Gas, founded by Rees-Jones in 1994, is currently one of the largest privately held natural gas producers in the United States. His decision to sell now comes as energy prices have risen to multi-year highs, bolstering the industry’s corporate valuations. According to the sources, Chief Oil & Gas has recruited an investment bank to start the sale process for the company, who asked to remain anonymous because the topic is private.
EQT CEO Says Marcellus and Utica Could Alleviate Europe’s Gas Situation
The Marcellus and Utica, according to EQT CEO Toby Rice, might help alleviate Europe’s enormous energy shortage. Rice expressed his desire to see new LNG export facilities built along the East Coast, possibly including one at the Marcus Hook refinery outside Philadelphia, which he described as a “great potential” for Pennsylvania.
Operators with Most Permits in PA
| Rank | Company | Permits Approved |
| 1 | EQT | 22 |
| 2 | Repsol | 19 |
| 3 | National Fuel Gas | 12 |
| 4 | Penn Energy | 7 |
| 5 | Antero Resources | 5 |
Top Producers By Gas
| Change | Rank | Company | Gas Production (mmscf) (7/21) |
| – | 1 | EQT | 1131.2 |
| – | 2 | Chesapeake | 791.3 |
| – | 3 | Cabot | 648.5 |
| – | 4 | Southwestern Energy | 577.5 |
| – | 5 | Antero Resources | 504.9 |
Rig Count
PA Oil Production
PA Natural Gas Production
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