Expert says Marcellus Shale’s potential ‘beyond imagination’By DAVID THOMPSON - email@example.com
The natural gas reserves contained in the Marcellus Shale formation are so extensive, people have difficulty grasping the magnitude of its potential impact on the state's economy, Penn State geosciences professor Terry Engelder said Tuesday during the Lycoming County Conservation District's annual awards banquet.
"The economic potential for the state of Pennsylvania is beyond imagination," Engelder said.
How big is the gas production potential of the shale?
Engelder, who is considered a leading authority on the Marcellus Shale, said the formation could contain between 167 and 515 trillion cubic-feet of natural gas.
Some sources rank the formation third behind the South Pars gas play in Qatar and the Urengoy play in Russia, he said.
Each gas well in Lycoming County likely will produce an average of 2.8 million cubic feet of gas per day, and 2.8 billion cubic feet over the life of the well, he said.
And that is a conservative estimate, he said.
Engelder said a well that produces an average of 4 million cubic feet of natural gas, at a wholesale price of $10 per 1,000 cubic feet and a royalty payment of 12 percent, could produce income of about $5 million for the owners of the land from which the gas is taken.
"Tell me that doesn't impact the local economy," he said. More...