Permitting, production down in Appalachian Basin
Monday, January 11, 2021
As oil and gas drillers in the Appalachian Basin have been forced to curtail production amid low prices, both permitting and production have seen significant declines, according to Seeking Alpha. Furthermore, the shale basin is expected to see year-over-year declines in production again in 2021.
Nearly all Appalachian producers, including Range Resources, Antero Resources, EQT Corporation and Cabot Oil & Gas, have been forced to curtail production. This has led to wells being shut-in and a major decline in permitting activity. In fact, monthly permit issuance has fallen to levels not seen in more than a decade.
Despite the decline, the Appalachian Basin is still the current king of dry gas production with more than 40% of domestic natural gas sourced in the Marcellus and Utica shales. That percentage has grown year-over-year without fail.
Learn more: Seeking Alpha > Disinterest in Appalachia could mean the rise of Paynesville Shale
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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.