The Wall Street Journal website reported on Saturday that the Marcellus Shale natural gas field is the cheapest place for energy companies to drill. Reserves in multiple states are found to be larger than recent estimates.
The article explains the effects of more reserves, including increased pipeline construction and the use of natural gas for more energy needs.
“Growing output from the Marcellus is putting pressure on energy companies in Canada and the Rocky Mountains, which have traditionally exported large amounts of gas to the lucrative Northeast market,” says the article. “But it appears that in the near future, the Northeast will get most or all of its gas from the Marcellus.”
Projected low production costs are an incentive for new service companies to get out onto the shale and create revenue, and a push for current businesses to continue building revenue in the Marcellus.
The formation below Pennsylvania, West Virginia, Ohio and New York has created many jobs for those in the oil and gas industries. Hopefully, the underestimated reserves will keep the energy and service companies in business for many years to come.