As the oldest oil and gas producing area in the United States, the Appalachian Basin has made a comeback during the past decade thanks to Marcellus and Utica shale gas production. Shale gas production from the Marcellus and Utica basins now stands at roughly 20 billion cubic feet per day (Bcf/d). ICF projects that Marcellus and Utica production will continue to grow rapidly, rising to upwards of 35 Bcf/d by 2025 and to more than 40 Bcf/d by 2035.
Production in the Marcellus and Utica basins is the most cost effective in North America today. Robust development of the area has been driven by significant improvements in horizontal drilling and multifrac completion technology and is also supported by the area’s relatively large resource base. At the same time, technology enhancements have kept drilling and completion costs in check.
In this quick take, ICF examines some of the opportunities and risks for market participants.