Our granular well-level analysis of this key shale gas play indicates a strong future of continued growth
The Marcellus is currently the largest shale gas play in the world. Its recognised commercial area spans over 30 million acres across four states and our latest research has revealed it to hold over US$90 billion in remaining value.
We expect the top 20 operators to drill 25,000 wells through to 2035 at a cost of nearly $110 billion.
In performing our research, we divided the play into 16 sub-play areas before leveraging our North America Well Analysis Tool which holds clean reported production data for each individual well.
Although rig counts have fallen across the Marcellus since early 2012, we can see that improved efficiency and a renewed focus on the play’s core sub-plays have led to on-going growth.
Well results are improving, with estimated ultimate recovery (EURs) in the top areas increasing by approximately 10% since 2013, thanks to the use of longer laterals and high-volume completions.
As such, we have raised our forecast of 2020 output from 14 bcfed to 20 bcfed and estimate that the Marcellus will soon account for nearly 25% of total US shale gas supply.
Drilling and completion costs typically range from US$6 million to US$9 million across the sub-plays.