Marcellus Shale Gas Resource Estimate Reduced 80%

By Admin
Share
The Marcellus Shale has reinvigorated the economies of the northeastern United States with newfound wealth in natural gas. All the major oil and gas co...

The Marcellus Shale has reinvigorated the economies of the northeastern United States with newfound wealth in natural gas.  All the major oil and gas companies—ExxonMobil, Chevron, Shell—not to mention mining giants like BHP Billiton, have been claiming their stakes on Marcellus shale land through acquisitions and mergers.  It looked like shale natural gas was to be the saving grace of America’s energy economy; that is until the United States Geological Survey released its new report.  The group has found that the Energy Information Administration (EIA) has grossly overestimated the amount of natural gas resources available in the Marcellus Shale formation.

Federal geologists claim that there are only 84 trillion cubic feet of technically recoverable natural gas in the Marcellus Shale formation compared to the former estimate of 410 trillion published earlier this year by the EIA.  The EIA has now agreed to reduce its official resource estimate by 80 percent based on the Geological Survey’s new findings.

SEE OTHER TOP STORIES IN THE WDM CONTENT NETWORK

South Africa's Mining Minister Extends Shale Frac Ban

BHP Billiton Acquires Petrohawk Energy Corp Gas Shale

Read the latest issue of Energy Digital!

The EIA is responsible for quantifying oil and gas supplies, but there has been growing concern from Congress as to how exactly the Administration goes about calculating its data.  The EIA reportedly depends highly on outside input from industry consultants, which may produce biased figures.

DOWNLOAD THE ENERGY DIGITAL iPAD APP

In July, EIA Director Howard K. Gruenspecht appeared before congress to quell any worries about resource estimates, arguing that his EIA’s figures were accurate.  Now, the Administration is apparently retreating on its word, and downgrading the estimates dramatically.

Nonetheless, the new Marcellus Shale natural gas resource estimates are still higher than the U.S. Geological Survey’s previous study in 2002, which predicted that only 2 trillion cubic feet of recoverable resources were present in the shale formation.  This estimate, however, was released prior to new hydraulic fracking drilling technology increasing access to hard-to-reach reserves.

Share

Featured Articles

Q&A with Amex GBT’s Director of Global Sustainability

Nicole Sautter, Director of Global Sustainability at Amex GBT, shares how it and Shell Aviation are key to reaching SAF goals with the Avelia programme

China's Pivotal Role in the Global Clean Energy Sector

We explore how China, a clean energy leader, drives the global clean energy market, investing heavily in renewables and leading technological innovations

IEF Explores the 'Paradox' of Mining's Role in Clean Energy

The International Energy Forum (IEF) identifies mining's critical yet challenging role in achieving a sustainable, electrified future

CDP: Critical Gaps in Corporate Renewable Energy Targets

Renewable Energy

Gartner says AI's Hunger for Power Strains Data Centres

Technology & AI

Shell, Equinor, Uniper & the Global Energy Storage Problem

Renewable Energy