U.S. Cuts Estimate for Marcellus Shale Gas Reserves by 66% !

In Part:

The U.S. Energy Department cut its estimate for natural gas reserves in the Marcellus shale formation by 66 percent, citing improved data on drilling and production.


The U.S. Geological Survey said in August that it would reduce its estimate of undiscovered Marcellus Shale natural gas by as much as 80 percent after an updated assessment by government geologists.


Sorry I do not believe this at all! A scheme to try and pull investors out of the gas? With the bull crap of carbon credits and the like it makes one question what (supposedly government) our government is doing.

http://www.businessweek.com/news/2012-01-23/u-s-cuts-estimate-for-m...

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Permalink Reply by jett on January 25, 2012 at 7:13am

http://www.pittsburghlive.com/x/pittsburghtrib/business/s_778033.html Hope this works!

A link to a relevant Marcellus Drilling News  newstory .

Permalink Reply by Sylvester Deal on January 25, 2012 at 8:26am

Folks,

This is old news, thoroughly hashed out in the past year when USGS came out with their 84Tcf estimate for future recoverable.  EIA now using proved reserves plus probable reserves for their new total, not the estimated resource base by various groups.  Proved and probable are only a part of the resource.  Resources may be technically recoverable, but gas price (economics) make them recoverable.  Besides, its only an estimate, it will change next year with another round of drilling and production forecasts.

 

Sylvester

 

Permalink Reply by William Mahoeny on January 27, 2012 at 3:31am

It's bad news to be sure, but we relied on their estimates to begin with so unless we have a qualified geologist review the data and challenge their "math" saying we don't believe the new estimates will simply be viewed as self serving.

 

Keep in mind that the quantity of gas will be only one element of the "value" to the gas companies.  The quality and distance to markets are also factors.

Permalink Reply by fred riley on January 27, 2012 at 3:54am

Same old 'camp run-a-muck'!

Until our Captains and Kings 'get it all together, and know for sure how much THEY will profit from all of this, the lies and deceit(s) will continue on. After that, the wee folk will still exist the same as we do now.

 

Permalink Reply by Dan on January 27, 2012 at 11:43am

Seems the pesky environment is polluting the oil.  Industry is trying to find away to solve the problem.  LOL

 

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Permalink Reply by Sam Douglass on January 31, 2012 at 5:06pm

No "scheme" is likely to be involved.  It is more likely explained by definitions of terms and standards used by geologists for measuring reserves.  Considering the length and breadth of the formation, there is a lot more exploring to be done.  One must ask whether the numbers are conservatively based on actual drilling results that may not be sufficiently completed to make conservative estimates of reserves.  Is it "proven" reserves, "Inferred" reserves "probable" reserves or something more or less.  Even less is known of the Utica based on actual holes etc. and it is hard to get much of any statement about the Utica from such "authoritative" sources.  But there is a lot of money being gambled on these formations from pretty knowledgeable companies.  My guess is that the higher numbers will prevail as more numbers come in.  And what about the Onandaga  ...  and ....

Permalink Reply by warjr on March 13, 2012 at 12:05pm

They govern for those with the $$$.  Makes no difference whether they are Dem or Rep.  they work and govern for those with th3 $$$.   Big oil companies own the oil rights / leases, natural gas lease and a great deal of the coal rights all across America.  If the price of NG drops they will stop the drilling.  But in the big picture there is still plenty of NG below PENNA. no matter what reports come forth. 

Permalink Reply by Jeffrey L kerr on March 13, 2012 at 1:55pm

its BS they are doing it to lower leases and royalties to make you think there is not that much ng there. its a lie the big co. want you to think that so you may take less for your land. 

Permalink Reply by gary smith on March 13, 2012 at 2:02pm

it has to do with the government. if they acknowledge lots of gas they won't get to shove a green prius up our ---.

Permalink Reply by warjr on March 13, 2012 at 2:33pm

nope it is about manipulating the price of crude which in turn increases the cost of gasoline, diesel, and heating oil.   If they keep pumping it from the ground they know the prices will fall.  So, like they have done since the first oil wells were sunk in PENNA.  Once price goes down enough and supply goes up... away go the rigs and the wells get capped.. but they will return as they do not want another source of any type of energy.  Big oil is big Natural gas and in many case big coal as well....  China is actively seeking leases in PENNA NG discovery areas.  That is why a pipeline is being built as we speak from SW PENNA to the PORT of Baltimore -- liquified NG and off to Europe and China where prices are much higher than in the US.  Same reason Canad and a certain big transporter of crude and Ng wants the Keystone Pipeline to those offshore, tax free export zones so they can move their oil through the U.S. and get it to those nations who will pay the highest prices.  Contrary to what some politicians and talking babble heads want us to think the Keystone Pipeline never was and is never going to be for driving prices down in America.  If it was the intent then they would use the upper midwest refineries and get it to the heartland farmers at a cheaper cost that would in turn keep our food prices a little more stable.  We are all lemmings.

Permalink Reply by john p halloran on March 13, 2012 at 2:52pm
Yes,there are numerus refineries in the midwest!!
Permalink Reply by Sam Douglass on March 15, 2012 at 2:43pm

Follow the money.  A lot more drillers this year in the area than last year.  Drilling in other areas down.  
Drilling in the tri state area up.  $9,000,000 plant going into Ohio, compliments of Chesapeake.  New cracker plant going into Beaver County.   New plants need something to eat when they are done.  India working on new facilities to dramatically increase its capacity to import LNG - ready 2-3 years from now.  Companies leasing everything they can get.


Gov figures are very conservative.  It doesn't list the maybe, might be, will be stuff - only what it can taste, touch and smell - and you hear them talk a little about the marcellus.  They haven't found out about the Utica, the Onandaga and who knows what else.  And with the price of oil up they are now back drilling for OIL where it was too expensive before - and in shallow strata.  All in Appalachia.

Try to read what companies are telling their investors and watch where they are putting unbelievable amounts of money.

Its the governments job to be careful not to overstate.  For that I am greatful - except when it becomes misleading.

 

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