Economic viability of shale gas production in the Marcellus Shale; indicated by production rates, costs and current natural gas prices

The U.S. natural gas industry has changed because of the recent ability to produce natural gas from unconventional shale deposits. One of the largest and most important deposits is the Marcellus Shale. Hydraulic fracturing and horizontal drilling have allowed for the technical feasibility of production, but concerns exist regarding the economics of shale gas production. These concerns are related to limited production and economic data for shale gas wells, declines in the rates of production, falling natural gas prices, oversupply issues coupled with slow growth in U.S. natural gas demand, and rising production costs. An attempt to determine profitability was done through the economic analysis of an average shale gas well using data that is representative of natural gas production from 2009 to 2011 in the Marcellus Shale. Despite the adverse conditions facing the shale gas industry it is concluded from the results of this analysis that a shale gas well in the Marcellus Shale is profitable based on NPV, IRR and breakeven price calculations.

The Domestic Natural Gas Shortage in China

This thesis analyzes the domestic shortage in the Chinese natural gas market. Both the domestic supply and demand of natural gas are growing fast in China. However, the supply cannot catch up with the demand. Under the present pricing mechanism, the Chinese natural gas market cannot get the equilibrium by itself. Expensive imports are inadequate to fill the increasing gap between the domestic demand and supply. Therefore, the shortage problem occurs. Since the energy gap can result in the arrested development of economics, the shortage problem need to be solved. This thesis gives three suggestions to solve the problem: the use of Unconventional Gas, Natural Gas Storage and Pricing Reform.

Seismic observations of regional gas blowdown at Teal South

A re-examination of seismic time-lapse data from the Teal South field provides support for a previously proposed model of regional pressure decline and the associated liberation of gas from nearby reservoirs due to the production from the only reservoir among them that is under production. The use of a specific attribute, instantaneous amplitude, and a series of time slices, however, provides increased detail in understanding fluid migration into or out of the reservoirs, and the path taken by pressure changes across faults. The regional decrease of pressure due to production in one reservoir has dramatic effects in nearby untapped reservoirs, one of which appears to exhibit evidence for the escape, and possible re-trapping nearby, of hydrocarbons from a spill point. The influx of water into the producing reservoir is also evidenced by a decrease in amplitude at one end of the oil-water contact.