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U.S. dry shale gas production 2018

The total production of dry shale gas in the United States in the month of November 2018 was 63,36bcf per day: Marcellus, Permian, Utica, Eagle Ford, Bakken, Haynesville

The total production of dry shale gas in the United States in the month of November 2018 was 63,36bcf per day which is 24% more than the same month in 2017. The main producing fields were Marcellus (21,04bcf/d), Permian (8,22bcf/d), Utica (7,33bcf/d), Haynesville (7,27bcf/d) and Eagle Ford (4,63bcf/d) according to the monthly report submitted by the EIA. These five shale plays produce 74,3% of the total shale Gas production in the United Stated.

Author

Emanuel Omar Martin

01/06/2019

© Creative Commons

Fig 1 United States Dry Shale gas production November 2018 porcent

Figure 1 shows the United Stated Dry Shale Gas Production in percentages. We can see here which are the main shale gas producers in U.S: Marcellus, Permian,  Utica,  Haynesville and  Eagle Ford are the biggest shale gas players in USA controlling 74,3% of the total shale gas production with Marcellus producing 33% with 21,04 billion cubic feet of gas per day.

United States historical production of dry shale gas

The shale gas production in the United States had a smooth beginning with a practically stable production during the first years. The high gas price between the years 2002 to 2008 resulted in an increase of the drilling activity; this produced a sustained growth in the gas production making duplicate it from 4,221Bcf/d (2007) to 8,78Bcf/d in just two years. From the year 2009 the production growth was more aggressive reaching a maximum production of 44,14Bcf/d in February 2016 from which it started to decline slightly in the following months to 42,26Bcf/d in October 2016 as a result of the strong disinvestment produced since the year 2015 in the drilling of new wells.

Figure 2 shows the historical dry shale gas production in United Stated by Play from January 2000 to November 2018.

With the recovery of the gas price the activity is growing again in the plays reaching a gas production of 63,66Bcf/day in November of this year.

Historical monthly production of shale gas by play

Marcellus Shale Gas

Figure 3 shows the historical drilling activity in United Stated. We can see here how is moving the drilling activity according with the gas/oil prices and how in less than ten years the vertical wells drilling have been disappearing. (Source: EIA).
Figure 3 shows the historical drilling activity in United Stated. We can see here how is moving the drilling activity according with the gas/oil prices and how in less than ten years the vertical wells drilling have been disappearing. (Source: EIA).

The Marcellus Shale Gas Play is the biggest shale gas producer in the United States. It’s located in the West Virginia and Pennsylvania States (Active Area) and there are more than 25 companies working in the play being the more important:

  1. EQT
  2. Range Resources
  3. Rice Energy
  4. Chevron
  5. Consol Energy
  6. Southwestern Energy Co.

The average types wells drilling in Marcellus play have  lateral length from 7,500 to 11,500ft with an average EUR of 24,8-30,1Bcf  and well costs between 6,5$ and 9,2$ millions dollars respectively (Range Resources 2018).  The average natural gas wellhead breakeven price per MMBtu in the play is 2,15$.

Table 1 shows the Wells type drilled in Marcellus Play by Range Resources in 2018.

Table 1 shows the Wells type drilled in Marcellus Play by Range Resources in 2018.

The shale gas activity in the play began in 2007 with production of dry gas, wet gas and condensates according to the well position along the play. The good mix of prices achieved with the sales of Natural gas, Ethane, NLG and condensates push up the development of the play being now the top shale gas producer in North America with 21,04Bcf per day in October 2018.

Figure 4 Marcellus Dry Shale Gas production from January 2000 to November 2018.

Figure 4 Marcellus Dry Shale Gas production from January 2000 to November 2018.

Permian Shale Gas

The Permian Shale Gas Play is the second biggest shale gas producer in the United States with the particularity that its gas is produced like associate gas of the oil production. It’s located in the West Texas and Eastern New Mexico and there are around 407 active operators working in the play being the more important by drilling activity:

  1. Endeavor Energy Resources (440)
  2. Pioneer Natural Resources (405)
  3. Occidental Petroleum (369)
  4. Apache Corporation (289)
  5. ExxonMobil (285)
  6. Diamondback Energy (230)
  7. Parsley Energy (211)

where the companies with the lowest oil break-even price (less than $26 per barrel) at lateral lengths between 7,560 and 10,500 feet are:

  1. EOG Resources
  2. Exxon Mobil
  3. XTO Energy
  4. Pionner Natural Resources
  5. Chevron

It’s important to underline that the Permian Basin is a complex and prolific basin constituted by three sub-basins (Delaware Basin, Midland Basin and Central Basin Platform) and multiples productive formations. The Midland Basin and Delaware Basin are the main focus of the activity where the more important plays are: BoneSpring, Wolfcamp Delware, Wolfcamp Midland, Spraberry and Avalon.

The average types wells in the Permian Region drilled between 2017 and 2018 are:

  • First BoneSpring Play it has a lateral length of 7,000 ft with an average EUR of 1,185Mboe (19% gas) and a cost of 7,5$ MM per well (EOG 2018).
  • Second BoneSpring Play it has a lateral length of 7,000 ft with an average  EUR of 950Mboe (22% gas) and a cost of 7,5$ MM per well (EOG 2018).
  • Wolfcamp A Play (Delaware) it has a lateral length of 7,000 ft with 42 Frack stages and EUR of 1,648Mboe with a cost of 9,5$ MM per well (CRZO 2018).
  • Wolfcamp B Play (Delaware) it has a lateral length of 7,000 ft with 42 Frack stages and a EUR of 1,461Mboe with a cost of 9,5$ MM per well (CRZO 2018).
  • Wolfcamp Midland Play it has a lateral length of 7,257 ft with 28 Frack stages per well using around 8,8 MM Lbs of proppant and 9,2 MM gallons of fluid with a cost of 7,8$ MM per well. New wells have a lateral length of 10,332ft.
  • Spraberry Play it has a lateral length of 9,686 ft and average 30 day peak rate of 1,178Boepd  with 86% of oil.

Figure 5: Permian Dry Shale Gas Production from January 2000 to November 2018.

Figure 5: Permian Dry Shale Gas Production from January 2000 to November 2018.

The large-scale field development began in the middle of the year 2009 from which it has maintained a sustained growth reaching a current production of 8.22Bcf/day in October of this year.

Utica Shale Gas

Utica Shale Gas Play is the third biggest shale gas producer in the United Stated. It’s located in the Ohio, Pennsylvania and West Virginia States. The top 5 companies working in the play are:

  1. Chesapeake Energy
  2. Chevron
  3. Consol Energy
  4. East Resources (Acquired by Shell)
  5. Enervest

Where the top companies by number of drilling permits are:

  1. Chesapeake (849)
  2. Ascent Rresources Utica (505)
  3. Gulfport (406)
  4. Antero (260)
  5. Eclipse (204)

The averages types well in the Utica play have a lateral length from 10,000 to 12,300ft with an average EUR of 20,6-25,3Bcf  or 2060Mcf per 1000 feet of lateral length and a cost of $9 million dollars. (EQT 2018) The average natural gas wellhead breakeven price per MMBtu in Utica is 2,41$.

Figure 6 Utica Dry Shale Gas production from January 2000 to November 2018.

Figure 6 Utica Dry Shale Gas production from January 2000 to November 2018.

The field development began in 2011 from which it has maintained a sustained growth reaching a current production of 7,33 Bcf per day in November of this year.

Haynesville Shale Gas

The Haynesville Shale Gas Play is the Fourth biggest shale gas producer in United Stated. It’s located in the Texas and Louisiana states and there are around 49 active operators working in the play being the more important:

  1. Chesapeake Energy
  2. Andarko
  3. BHP Billinton  Limited
  4. Range Resources
  5. EOG Resources

Where the Top Drillers companies are:

  1. Rockcliff Energy (56)
  2. Sabine Oil & Gas (53)
  3. XTO Energy (48)
  4. BP (37)
  5. CCI East Texas Upstream (25)
  6. Tanos Exploration (25)

The new well type in Haynesville shale has a lateral length of 15000ft with a cumulative gas production of 5,8bcf in 170 days (Chesapeake 2018) and an average natural gas wellhead breakeven price per MMBtu of 3,04$.

Figure 7 Haynesville Dry Shale Gas production from January 2000 to November 2018.

Figure 7 Haynesville Dry Shale Gas production from January 2000 to November 2018.

The large-scale field development of Haynesville began in 2008 from which it had sustained growth reaching a maximum production of 7,2Bcf/d in January 2012 and since this month it started to decline to 3,51Bcf/d on March of 2016. With the increase in the gas price recovered the drilling activity together with the gas production level which reached 7,27bcf per day in November of this year.

Eagle Ford Shale Gas

The Eagle Ford Shale Gas Play is the fifth biggest shale gas producer in the United States. It’s located in the Texas State and there are around 187 active operators working in the play being the more important by the drilling activity:

  1. EOG Resources (392)
  2. ConocoPhillips (200)
  3. Sanchez Energy (188)
  4. WildHorse Resources (131)
  5. Chesapeake Energy (123)
  6. Marathon Oil (111)
  7. Lewis Energy (106)

The wells types in the Eagle Ford Shale are different between the companies and the place in the play where they’re drilled:

  • Well type 1 has a lateral length of 10,000 ft with an EUR between 600 to 700Mboe and a well cost of $7,5-$8,5 million dollars (6% gas, 9% Ngl and 85% Oil) (Chesapeake 2018).
  • Well type 2 has a lateral length of 6,600 ft, 33 Frack stages and an EUR of 502Mboe with a cost of 4,5$ MM per well (CRZO 2018).
  • Well type 3 has a lateral length of 5,300 ft and a EUR of 450-580Mboe (15% gas, 14% Ngl, 71%) with a cost of 4,3$ MM per well (EOG 2018).

Figure 8 Eagle Ford Dry Shale Gas Production from January 2000 to November 2018.

Figure 8 Eagle Ford Dry Shale Gas Production from January 2000 to November 2018.

The large-scale development of the play began in January 2011 from which it had sustained growth reaching a maximum production of 5.15Bcf/d in October 2015 and since this month it started to decline to a minimum production of 3,886Bcf/d in March of 2017. With the recovery of the oil prices (mainly associate gas) the activity in the play started to grow again reaching 4,63Bcf per day in November of this year.

Barnett Shale Gas

The Barnett Shale Gas Play is the sixth biggest shale gas producer in the United States. It’s located in the Texas State and there are around 142 active operators working in the play being the more important by the drilling activity:

  1. PetroBAL (42)
  2. Devon Energy (34)
  3. Stasney Well Service (27)
  4. White Knight Production (23)
  5. TEP Barnett USA (19)
  6. EnerVest (16)
  7. HWH Production (10)

The average EUR in the new wells in Barnett is 1,6Bcfe per well with a well cost ranging from $1,6 to $3,7 million dollars.

Figure 9 Barnett Dry Shale Gas production from January 2000 to November 2018.

Figure 9 Barnett Dry Shale Gas production from January 2000 to November 2018.

The development of the field has maintained a sustained growth reaching a maximum production of 5.01Bcf/d in November 2011from which it has begun to decline because the  average natural gas wellhead breakeven price in the play is 3,82$ per MMBtu (actually) which is bigger than the Henry Hub prices. As the field is not profitable to drill new wells at this HH price the gas production and the activity in the play are going down month by month reaching a current gas production of 2,58 Bcf per day in November of this year.

Emanuel Martin
Emanuel Martin is a Petroleum Engineer graduate from the Faculty of Engineering and a musician educate in the Arts Faculty at National University of Cuyo. In an independent way he’s researching about shale gas & tight oil and building this website to spread the scientist knowledge of the shale industry.
http://www.allaboutshale.com

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