"For much of the state of Maine, the environment is the economy"
NOTICE — Beginning in 2013 March:
Due to the pending FERC calendar re Downeast LNG permitting, in order to focus our time and resources, news articles cited on this website will include mostly just those articles of interest to the Passamaquoddy Bay area.
2013 March 10
Natural gas industry observers will attest that growth in gas production from Pennsylvania's Marcellus shale has surpassed even the most optimistic of projections. And, according to a new report by a prominent investment research firm, Marcellus production growth won't be peaking anytime soon.…
Last year, natural gas output from the Marcellus surged 61% year over year to average 10.4 billion cubic feet per day, according to the U.S. Energy Information Administration. This phenomenal growth is thanks largely to major efficiency improvements resulting from a shift toward multi-well pad drilling, which allows energy producers to drill more wells from existing pads.
One of the main reasons these energy companies continue to drill in the Marcellus is because they can generate phenomenal returns even with relatively low gas prices. Cabot, for instance, can now generate pre-tax returns in excess of 100% at a wellhead gas price of only $3.00 per MMBtu, while Range and Chesapeake can earn triple-digit returns with $4.00 per MMBtu gas at the wellhead. [Red & bold emphasis added.]
Webmaster's comment: Natural gas output last year from just the Marcellus in the Northeast was roughly the equivalent capacity of all US LNG import terminals, combined. But, Downeast LNG's Dean Girdis wants you to believe his project is really, really needed, because…you know…the Northeast just doesn't have enough natural gas.
December was a banner month for U.S. natural gas production, hitting a record high of 2.63 Tcf and pushing the 2013 year-end total to a record 30.17 Tcf, according to the Energy Information Administration (EIA).
Total U.S. gas production in 2013 surpassed by 2.1% the 2012 total of 29.54 Tcf, EIA said in its latest Natural Gas Monthly report.
The December production total was a 4% increase compared with 2.52 Tcf in December 2012.
Production from the Other States category, which includes Pennsylvania, Ohio and West Virginia, was a record 898.1 Bcf in December, a 24.5% increase from 721.1 Bcf in November 2012, according to EIA data. The Other States category produced 9.52 Tcf in 2013, an impressive increase from 8.23 Tcf in 2013. [Red & bold emphasis added.]