Daily natural gas production levels surpassed 15 billion cubic feet per day (Bcf/d) through July in the Marcellus Region according to the Energy Information Agency’s (EIA) Drilling Productivity Report.
In 2010, the region averaged roughly 2 Bcf/d.
The Marcellus Region generates about 40% of U.S. shale gas making it the largest producing shale gas basin in the country.
Rig counts in the region have held around 100 for the past ten months. According to the EIA, each rig supports over 6 million cubic feet per day of new-well monthly production.
Direct Energy sponsors active in the Marcellus play a part in this production growth.
One such firm is MDS Energy Development, LLC (MDS) an integrated oil and gas exploration firm that offers direct participation drilling partnerships through the independent broker-dealer (IBD) channel.
Headquartered in Kittanning, Pennsylvania, which is in the Marcellus Region, MDS has been active in the shale play since 2005.
According to a recent Form D filed with the SEC, they intend to raise up to $50 million for an offering named MDS 2014 – Marcellus Shale Development, LP and presumably will put that capital to work potentially furthering production in the region.
Meanwhile, the EIA expects production to continue its rise from new wells coming online with production rates that will exceed the anticipated drop from already producing wells.
Increased production means infrastructure needs will grow.
The area has already witnessed multiple pipeline expansion projects which have provided additional Northeast markets access to Marcellus gas.
Not only does Marcellus shale production provide valuable energy to the region, it also generates significant jobs for local economies.