Company plans to double production in Marcellus by end of 2020
Tuesday, December 11, 2018
Repsol Sa plans to increase production in the Marcellus natural gas shale field by about 50 percent by the end of 2020 due to efficiency gains, according to an executive comment at an industry conference in New York on Thursday.
“With just the addition of one rig and investment of about $400 million a year, we’re going to be able to raise production by 50 percent and be cumulative cash flow positive by the end of 2020,” Paul Ferneyhough, executive director of North America for Repsol said at the S&P Global Platts Global Energy Outlook Forum.
The company holds an interest in 168,400 net acres in the Marcellus Shale.
Learn more: Reuters > Repsol expects to raise production by about 50 percent in Marcellus shale by end of 2020
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.