Palmerton Group

• Environmental Risk Management
• Environmental Liability Transfer Management
• Remediation and Site Closure
• Marcellus Shale Gas
  • Facts and Statistics
  • What You Need to Know
  • Implications and Opportunities for Companies
  • Supply and Demand
  • Pipeline and Storage
  • Companies Entering the Play
  • How Do I Enter the Market?
  • Environmental Due Diligence
  • Frac Flow-Back Water Study
  • Related Links
• Water Resources and Groundwater
• Sediment Management
• Environmental Litigation Support
• Compliance Services
• Wetland Mats

Marcellus Shale Gas — What You Need to Know

Natural gas is recognized as a clean energy source and the markets will quickly expand as legislation is enacted to spur growth in its use over other fossil fuels. Explorers & Producers (E&Ps) are seeing this trend as inevitable and are actively investing.

Projects are plentiful but resources are limited by the number of companies serving the region. Quality products and services will have an abundance of customers, so we encourage you to make the most of the current market opportunities.

President of the Pennsylvania Marcellus Shale Coalition, Katherine Klaber recently stated that the supply chain for the natural gas industry in Pennsylvania doesn't exist and is only being developed now. With production predicted to reach 8BCFD by 2014, and pipeline flows from Canada to the Northeastern u.S. already decreasing, it is clear that the Marcellus field will be an energy game changer.

Opportunities for producers of everything from drilling rigs to waste water processing equipment are abundant. The engineering and technological challenges in developing this field are numerous and include: waste water treatment, uneven topography, multi-stage hydraulic fracturing, long lateral horizontal drilling, abundant natural gas liquids, pipeline infrastructure, and storage. Technologies and processes to deal with these challenges are being developed now, and the expertise and experience of Canadian companies is both necessary for success and welcomed with enthusiasm and open arms.

The market is being driven by factors such as;

• Just 10 years ago these fields were deemed as uneconomical. However, now they are some of the most affordable fields in the world to develop. Marcellus gas has a wellhead cost of $1 per MCF, cheaper than almost any traditional source.
• This discovery comes at a time when greenhouse emissions are coming under increasing regulation. Natural gas produces 70% less greenhouse emissions than coal and 40% less than oil. It is important to note that at current prices, gas costs $4 per million BTU vs. oil at $18 per million BTU, representing an opportunity for consumers to benefit from the cost differential by switching from oil to natural gas.