If Pennsylvania, Ohio and West Virginia were its own country, As clean-burning natural gas-fired power generation grows, that nation would be the world’s third-largest natural gas producer. Incredible as it is, production from the tri-state region is projected to double in the next twenty years, at which point it will supply 45 percent of total U.S. production, according to a study from IHS Markit.
Such achievements and forecasts are possible thanks to advancements in modern horizontal drilling technologies, which have birthed a new era of U.S. energy dominance. The continued production
growth in the Marcellus and Utica shale plays is being driven by improved efficiency and cost reductions in drilling and well completions, as well as increased takeaway capacity and greater downstream opportunities.
For example, in 2010, the typical lateral – the horizontal leg of a well – was 3,500 feet. Nine years later, operators can now reach gas trapped two to five miles from the wellhead. These longer laterals allow more fracture stages along the horizontal section of the well – releasing more of the trapped natural gas. As a result, we can capture more energy from a single well, translating into more efficient, cost-effective production with far less surface land disturbance.
This environmental progress is reinforced with the industry’s ever-improving standards and best practices. Remote monitoring, for example, allows for constant supervision without the need for daily visits, reducing vehicle traffic. Innovative research, technology and operational efficiencies are at the core of driving production growth and environmental progress.
As we safely produce greater volumes of clean, domestic energy, the need for modern, expanded infrastructure is critical to realize the full economic and environmental opportunity shale presents. The highly skilled men and women of our region’s construction trade unions are building new pipelines or repurposing pre-existing ones using superior materials and employing the most recent technological innovations.
Projects like the Atlantic Sunrise Pipeline in central Pennsylvania, which went into full service in October, enable local operators to more easily and efficiently transport their product to market, increasing our region’s competitiveness and connecting consumers with an affordable, reliable fuel source. In fact, the Commonwealth of Pennsylvania accounted for one-quarter of the growth in natural gas power generation last year, according to federal data.
As clean-burning natural gas-fired power generation grows, consumers and our shared environment benefit. On average, Pennsylvania households save $1,100 - $2,200 annually on home energy. Air pollutants, like SOx and NOx, particulate and VOC emissions have plummeted dramatically. Carbon emissions from the power sector have also dropped by a quarter since 2008.
Beyond the home energy savings and clean air progress, the expansion of critical energy infrastructure, coupled with the robust development of Marcellus and Utica shale, has positioned Appalachia as the premier region for manufacturing investment and growth. Regional ethane production, a valuable feedstock used to make plastic, is projected to reach 640,000 barrels per day in 2025 – more than 20 times greater than in 2013 – according to a Department of Energy report.
Look no further than Shell Pennsylvania Petrochemicals Complex under construction in Beaver County. This project is providing good-paying jobs to thousands of building trades men and women, represents the largest investment in the region since World War II and is the first major petrochemical project to settle in Pennsylvania, West Virginia or Ohio in generations.
Efficiencies and advancements from the well pad to the burner tip are transforming the region, providing the ability to compete and win economically, grow good-paying local jobs and improve our environment. But the positive effects of local production transcend regional, or even state, limits. The dramatic rise in domestic natural gas production is disrupting the global market, while advancing both U.S. energy and national security.
Our industry, born on the back of private investment and entrepreneurial spirit, is constantly innovating and experimenting to meet rising energy demand in the safest and most efficient means possible.
As an industry armed with the most cutting-edge technology and a history of achieving the unprecedented, the future possibilities are endless.