Tuesday, March 18, 2014

Marcellus/Utica NGL production too low to support proposed ethane cracker

Independent energy analyst Bill Powers commented on Shell’s Marcellus shale performance stating,

"Given that Shell has already spent more than $9 billion dollars
to get into the Marcellus and drill over 600 wells over the past few years,
their production results must be considered extremely disappointing.
According to PA production data, Shell's wells are less than half as productive
as one of their major competitors in their area of the Marcellus. More importantly,
Shell's wells are likely to be uneconomic even with the recent rise in gas prices.... "

Powers stated, "I do not believe that Shell will go forward
with  building an ethane cracker in Beaver County.
According to State data, natural gas liquids production is
less than 10,000 barrels a day in Washington County
and it is unclear how much ethane will be produced
on a long-term basis.
Due to the size of the required investment
by Shell and the long lead-time, it is easy  to understand
why the company would be uncomfortable making
such a large commitment to the Marcellus given their weak results to date."


May you, and all beings
be happy and free from suffering :)
-- ancient Buddhist Prayer (Metta)

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