New research from two independent financial companies suggest that the Marcellus Shale is not only the largest natural gas field in the country, but that it is also the cheapest location for energy companies to drill.
ITG Investment Research’s report shows that recent government estimates of the Marcellus reserves fall well below actual levels, according to detailed analysis of Marcellus well production data. The reserves underlying parts of Pennsylvania, W. Virginia, Ohio, and New York are quite a bit bigger than government estimates.
The report from Standard and Poor’s indicates that the Marcellus might contain as much as half of the entire nation’s proven natural reserves. It also points out that the Marcellus makes for the lowest production cost out of all domestic natural gas fields, suggesting the ongoing shale boom will only continue.
Obviously, both of these finds make a good case for continuing to use natural gas for domestic energy needs.
A widely-reported government adjustment of Marcellus reserves, from 410 trillion cubic feet to 141 trillion cubic feet, appeared earlier this year.
But Manuj Nikhanj, the ITG’s head of Energy Research, says that the government estimates don’t reflect production data. Instead, the research firm insists that the Marcellus contains around 330 trillion cubic feet of gas.