Marcellus Shale Increases its Profile Nationally

The recently released U.S. Crude Oil, Natural Gas, Natural Gas Liquids Proved Reserve 2010 report detailed statistics on the changes in the nation’s proven reserves for natural gas. The report noted that the accelerating growth of the proven reserves in recent years was a result of “expanding exploration and development activity in several of the nation’s shale formations.” Shale gas continues to grow to be a larger part of the 318 Tcf of the nation’s total proven reserves. The report also noted that shale gas is almost 30% of the total reserves, compared to less than 10% in 2007.

According to the report “Pennsylvania’s proved natural gas reserves more than doubled in 2010, contributing to about one-fifth of the overall increase. Expanding shale gas developments in these and other areas, perhaps most notable Pennsylvania’s portion of the Appalachian Basic in the Marcellus play, drove overall increases in 2009 and 2010.”

The Marcellus Shale formation’s proven reserves increased by 7.1 Tcf in 2010 alone. While Pennsylvania is still far behind the nation’s leading state, Texas, the report ranked Pennsylvania in the top 6 in the nation, an honor that Pennsylvania did not earn as recently as a 2008. As recent as 2008, the government estimated that the reserves were approximately 102 Bcf, and by 2010, reserves were estimated to be 13.199 Tcf. The report cited that Pennsylvania may again see substantial growth in its proved reserves as further drilling and development continues.

The report also noted that the sustained declines in the price for natural gas has caused many operators to focus on formations of wet gas, which the Marcellus is rich in the southwestern region of Pennsylvania.

© 2012 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

our thoughts on

array(1) { [0]=> string(2) "12" }
President Trump Signs Two Executive Orders to Enhance Pipeline Production
Pennsylvania's New Natural Gas Severance Tax Proposal
Vendor Audit: A Necessary Assessment
ASC 842 Expected to Impact Natural Resource Sector
Defining UBIA for Oil and Gas Producers
Qualified Business Income and Percentage Depletion Interaction

Register to receive our weekly newsletter with our most recent columns and insights.

Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us

contact us

Map of Pittsburgh Office
Pittsburgh

One PPG Place, Suite 1700
Pittsburgh, PA 15222

contactsd@schneiderdowns.com
p:412.261.3644     f:412.261.4876

Map of Columbus Office
Columbus

65 East State Street, Suite 2000
Columbus, OH 43215

contactsd@schneiderdowns.com
p:614.621.4060     f:614.621.4062