Marketing and Logistics of Natural Gas Liquids in the Appalachian Basin

55 Pages·2016·5.89 MB·English

by  Carol Loveland

PENN STATE EXTENSION WEBINAR
MARKETING AND LOGISTICS
OF NATURAL GAS LIQUIDS
IN THE APPALACHIAN BASIN
Nov. 17, 2016
THE RUN DOWN
AGENDA
▸
Development of the Appalachia shales
▸
Natural Gas Liquids (NGLs)
▸
Advent & growth of NGL transportation options
▸
Broad overview of NGL markets and end uses
400 MILLION YEARS IN THE MAKING
DEVELOPMENT OF THE
APPALACHIA SHALES
US SHALE PLAYS
IN BRIEF
THE BIRTH OF MARCELLUS NGL
PRODUCTION
▸
First commercial shale: Barnett in North Texas
▸
Pennsylvania was “drilled up”
▸
First commercial Marcellus well: Nov 2004
▸
Originally planned for dolomite (not shale) target
▸
First Marcellus gas processing plant: Dec 2008
▸
C3+ fractionation (purity NGLs): 2010
STACKED IN OUR FAVOR
PITTSBURGH REGION
THE VERTICAL PORTION IS THE “FIXED COST”
THE WELLS
Old Current
2400’ lateral 5000’+ lateral
8 frac stages 25+ frac stages
S
H
A
L
E
APPALACHIA SHALE ECONOMICS ARE FORMIDABLE
PRODUCTION TODAY
PRODUCTION IS AN ARTIFACT OF PAST DRILLING EFFORTS
PRODUCERS PRODUCE
BAKER HUGHES INTERACTIVE MAP
MARCELLUS/UTICA ACTIVE
HORIZONTAL RIGS