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Page added on June 14, 2018

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Permian, Marcellus & Utica to Supply 55% of N. American Gas by 2030

Production

The Permian, Marcellus and Utica shale plays will supply 55 percent of the North American gas market by 2030.

That’s the forecast of McKinsey Energy Insights (MEI) in their latest report “North America Gas Outlook to 2030.”

Of the anticipated associated gas growth, about 60 percent is expected to come from the Permian. Currently, the Marcellus and Utica account for 27 percent of total supply in Canada and the U.S. That percentage is expected to grow to 40 percent by 2030.

“Continued improvements in technology have sustained North American gas production. Improved drilling and completions technology have led to enhanced recovery rates and efficiency, while innovations in water procurement and disposal are allowing operators to realize where additional savings can be made,” Yasmine Zhu, senior analyst at MEI said in a statement. “We anticipate that further technical breakthroughs will continue to boost shale gas production and drive down costs, particularly over the next two- to-five years in marginal plays like the Haynesville.”

These developments have substantially lowered breakeven costs, and MEI estimates that North America can produce enough gas to meet more than 25 years of demand below $2.8/mmbtu. If recovering oil prices drive a boom in drilling, increasing oilfield service costs could influence the breakeven price.

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3 Comments on "Permian, Marcellus & Utica to Supply 55% of N. American Gas by 2030"

  1. BobInget on Thu, 14th Jun 2018 6:05 pm 

    WHEN (all caps) crude hits WTI $100, monster moves to Affordable Natural Gas are inevitable.

    At this stage, we have little choice.

    Of course, hundred buck oil is not some kind of upper limit. We have no idea if there is one.

    Oil is telling us, “You can’t fire me, I quit”.

    Billions are being allocated for key storage research, once there, entire new fields open.

    We are so fing lucky to to have all this gas..
    Crude oil is so 20th Century.

  2. Outcast_Searcher on Thu, 14th Jun 2018 8:02 pm 

    Why. It’s not like the WTI near $100 on average in 2010 to 2014 was “unaffordable” enough to cause much of a problem. GDP, oil consumption globally, etc. continued just fine. And considering inflation, that near $100 would be $100 today.

    So who has little choice, especially in the first world?

    And if people drive more efficient cars because they don’t like $3.50ish gas, that’s good for everybody.

  3. Anonymous on Sat, 16th Jun 2018 2:27 am 

    Natural gas total withdrawals are at 98 BCF per day. That is up over 30 BCF from 2006:

    https://www.eia.gov/dnav/ng/hist/ngm_epg0_fgw_nus_mmcfdm.htm

    It’s an incredible growth. Earth to David Hughes.

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