Marcellus well backlog grows in Pennsylvania, but production grows
more: Barclays
Washington (Platts)--23Aug2013/315 pm EDT/1915 GMT
The number of backlogged wells in Pennsylvania's Marcellus Shale grew
even as the number of rigs working the play dropped, Barclays Bank said
Friday, setting the stage of another year of explosive production
growth.
Using data from the Pennsylvania Department of Environmental Protection
and Platts' Bentek unit, Barclays said the number of wells awaiting
completion or a pipeline grew 8% to 1,546 in the first half of this year
when compared with the last half of 2012.
"With more than 1,500 wells in the backlog, if all wells in the backlog
were brought online within a year, production growth could exceed the
growth experienced in 2012," Barclays analyst Shiyang Wang said in a
note to clients.
Wang said she expects production from the Utica and Marcellus shales to
grow another 46%, 3.6 Bcf/d, this year to 11.44 Bcf/d and another 29%,
3.3 Bcf/d, in 2014.
DEP production data, released twice a year, indicated that
Pennsylvania's Marcellus gas production grew 58% from first-half 2012 to
first-half 2013.
"Given the infrastructure expansions that we are expecting to see in the
Marcellus, we believe that production growth in the Marcellus should
outpace last year's level," Wang said.
--Bill Holland,
bill.holland@platts.com
--Edited by Jason Lindquist,
jason.lindquist@platts.com
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