Marcellus Shale production has continued to increase exponentially, according to a February 2014 drilling productivity report for tight oil and shale gas regions released by the Energy Information Administration (EIA) on Feb. 12.
The report shows that “Pennsylvania natural gas production more than quadrupled from 2009 to 2011 because of increased development of the Marcellus Shale.”
The EIA says the Marcellus Shale region is producing just over 14,000 million cubic feet of natural gas per day.
The report also shows that in one year, new-well gas production per rig increased over 1,000 cubic feet per day; also in one year the Marcellus Shale was able to increase output by over 4,000 million cubic feet per day and natural gas production in the shale is increasing by 405 million cubic feet per day, month over month.
Across the United States, shale regions have accounted for nearly 90 percent of domestic oil production growth and virtually all domestic natural gas production growth during 2011 and 2012.
Canadian pipeline sought in Bakken
Magnum Hunter Resources Corp. – a Texas-based company – wants to build an oil and natural gas pipeline north of Crosby, N.D., to carry up to 1 billion cubic feet of natural gas from Saskatchewan into the U.S.
The company will operate under the name Bakken Hunter LLC.
The pipeline would transport natural gas from Saskatchewan’s oilfields into Divide County, where the gas can be put into ONEOK’s Rockies Midstream gas pipeline, according to Bill Irwin, Bakken Hunter’s vice president of operations.
ONEOK would then refine and fractionate the gas and sell products such as propane and butane. Most of this gas is currently flared at the well site, Irwin said.
The Federal Energy Regulatory Commission is considering the proposal.
U.S. Silica announces expansions to supply chain
U.S. Silica Holdings Inc. announced Feb. 11 that the company has entered into an agreement with Union Pacific Railroad to build a new, unit train-capable silica sand storage facility in Odessa, Texas.
The company has also completed modifications to its resin-coated sand facility in Rochelle, Ill.
U.S. Silica said the changes now enable the plant to ship raw sand to multiple destinations across the country. The plant will continue to produce resin-coated sand for the oil and gas and foundry industries.
U.S. Silica and Union Pacific Distribution Services plan to develop a 20,000-ton frac sand storage facility, which is expected to be operational by the end of 2014.
“We are excited at the potential opportunities that will arise from the Odessa Transload facility,” said Brad Thrasher, vice president and general manager of industrial products at Union Pacific. “This will serve as a great outlet for continued growth in the Permian Basin.”
U.S. Silica’s investment in the loading facility is about $12 million. It was not disclosed how much Union Pacific’s investment was.