The US Energy Information Administration (EIA) has lowered its estimate of the nation’s recoverable shale-gas resources even as production is expected to increase. EIA’s 2012 Annual Energy Outlook, estimates the amount of technically recoverable shale gas resources in the US at 482 Tcf, almost 42% less than its estimate of 827 Tcf a year ago.
The low estimate can be explained by the decrease in the estimate for the Marcellus shale, from 410 Tcf to 141 Tcf.
In this regard, what are the plans of the major gas driller, Chesapeake??
Chesapeake reported that it would cut its dry-gas shale output by about 8% this year to focus on liquids-rich plays, as decade-low prices for the fuel make producing it uneconomical. The drilling activity at these dry gas plays will reduce to about 24 rigs by the second quarter, from the current 47 rigs. In turn, Chesapeake will shift its focus to the liquids-rich plays, such as Eagle Ford, Utica and Granite Wash.
To know more about Chesapeake’s activity in the liquids-rich plays, please view its latest presentations at Derrick Document Search Tool: