The cost to drill a Marcellus shale well is decreasing
Tuesday, March 29, 2016
According to FuelFix, drilling a Marcellus shale oil or natural gas well cost $6.1 million in 2015, down from $6.6 million in 2014.
Actually, the cost to drill wells in other shale plays is getting cheaper, too. The U.S. Energy Information Administration released a report, commissioned by IHS Global Inc., to study upstream costs and production costs in five shale regions.
The average well and completion costs have fallen 25 to 30 percent below prices in 2012, when prices were their highest this decade.
Read more: FuelFix > Here’s what it costs to drill a shale well these days
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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.