Natural Gas News – June 27, 2018
Shell’s Natural Gas Focus Puts Appalachian Assets In Spotlight
E & P reported: When it comes to meeting the world’s energy demand, natural gas is playing a pivotal role in the global portfolio of Royal Dutch Shell, and its U.S. Appalachian assets are part of the mix. The supermajor holds about 544,000 acres in north central Pennsylvania in an area once thought to be an overly mature part of the basin. But Shell discovered a dry gas sweet spot located primarily in Tioga County that it is using to its advantage, Tonya Williams, general manager for Shell Oil’s Appalachia region, told a crowd gathered for Hart Energy’s DUG East Conference and Exhibition. With 80 trillion cubic feet of net resources in Pennsylvania, Shell produces about 440 million standard cubic feet per day with a breakeven of about $2 per MMbtu. “So natural gas in the Appalachia Basin is going to be quite affordable for us in particular with strong Henry Hub,” Williams said, calling the play an “excellent fit” to the company’s portfolio mix of 75% natural gas and 25% oil.
Is The Eagle Ford About To Boom Again?
Oil Price reported: When the U.S. Geological Survey published its updated resource estimate for the Wolfcamp Basin in the Permian a couple of years ago, it added fresh fuel to an already major rush to the Permian. Now, the authority has updated its resource estimate for the Eagle Ford, which could spark a similar rush for those whose pockets are deep enough. The USGS said it now estimates undiscovered, technically recoverable oil and gas resources in the Eagle Ford to be around 8.5 billion barrels of crude and 66 trillion cu ft. of natural gas, plus 1.9 billion barrels of natural gas liquids. Undiscovered resources are those that are estimated based on geological data and existing reserves in exploitation. They may or may not be commercially viable, unlike technically recoverable resources, which are considered extractable economically with existing technology.