Cabot Grows Marcellus Shale Potential, Proving Naysayers Wrong

Cabot - Tom ShepstoneTom Shepstone
Shepstone Management Company, Inc.

 

Shale gas opponents grasping for straws, in their failing and flailing effort to stop fracking in New York, have been latching onto a bogus theory of poor Marcellus Shale yields but Cabot Oil & Gas keeps proving them wrong. 

Anti-development groups together with some of their naive friends in the media have bought into some nonsense being disseminated by Tony Ingraffea and his fractivist allies criticisms about the Marcellus Shale’s potential.  They have been saying there is no economically recovered shale gas in New York; the Marcellus Shale is a boom and bust phenomena; production rates in the Marcellus Shale are declining at accelerated rates; and so on. Cabot Oil & Gas Corporation has just nitwits of these naysayers with its latest operations update.  It’s a must read for anyone who might have taken taken Tony the Tiger seriously.

Cabot 10-Well Pad Production

Cabot is already well known throughout the Marcellus Shale region for its gigantic production wells; including 18 of the top 25 wells in the shale play. Some of these wells are even among the best producers in the country and they’re just a short ride from the New York border. But, it’s got even better.

Cabot Oil & Gas just announced the company’s first 10-well pad in the Marcellus Shale was officially been turned-in-line a few months ago and the results are nothing less than amazing. During a 30-day production period the pad reached an average 168 million cubic feet (Mmcf) of production, peaking at just over 201 Mmcf. Needless to say, that’s a lot of natural gas and it’s all coming from but one location.

The announcement also details how Cabot was able to reduce operational costs during drilling and hydraulic fracturing operations at this 10-well pad. Indeed, by drilling all 10 wells in quick succession, Cabot saved over $6 million dollars. Better drilling efficiencies also contributed to this reduction in costs.  These are some of the reasons Cabot break-even price is well below that of many companies and why Tony and company (not to mention Deborah Rogers) are full of it when prognosticating gloom and doom regarding New York’s potential).

Green Fracking with Cabot

When it came to hydraulically fracturing the wells, Cabot completed the entire 10-well pad job using bi-fuel equipment, demonstrating how cutting edge the company and the industry it represents truly are; always three steps ahead of shale gas opponents who are, well, so yesterday. Bi-fuel equipment simultaneously burns diesel and natural gas, reducing diesel consumption by 30 – 60%.

Cabot estimates approximately 110,000 gallons of diesel fuel was replaced with its own natural gas out of nearby pipelines. No other company has, to my knowledge, completed this many wells using bi-fuel equipment in the Marcellus Shale.  [Readers, if you know of examples, please provide them, as this industry is progressing so rapidly it’s hard to keep up.]

Dan O. Dinges, Cabot Chairman, President, and Chief Executive Officer said “bi-fuel operations on this pad represent the future for Cabot’s drilling and completion activities in the Marcellus and we expect these initiatives to be implemented across our entire program over the next few years.”

The Toothless Tiger Exposed

There’s one more aspect to this story and it relates to the geology, illustrated on this map depicting the depth of the Marcellus Shale/

Cabot - Marcellus Shale

Marcellus Shale Isopach Map

Cabot also discussed how the shale gas wells on this 10-well pad were drilled into two separate and distinct layers of the Marcellus Shale, the upper and lower formation. Where Cabot is located, the Shale is roughly 400 feet thick and is separated by another thin layer of limestone. The fact Cabot is exploring both layers and getting exceptional returns from each indicates the Marcellus Shale is one mighty play.  Don’t tell that to Tony the Tiger, though.  He doesn’t know he’s toothless.

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37 thoughts on “Cabot Grows Marcellus Shale Potential, Proving Naysayers Wrong

  1. “Green Fracking ” …HaHa !! no such animal (only another PR stunt .Time will tell if your story is true .What will be the true life of wells ….???? and the nuisances caused will remain way beyond the production .Only those seeking venture and investment are excited .

    • Bill

      Your such a negative person, everyone knows how you and your family stay warm, travel, and enjoy the many benefits brought into your lives by fracking for oil and gas. Yet, you’re so quick to be the phony hater you are. I hope when you go to Albany with the rest of the “Hypocrites Against Reality” your buses runs out of fuel. It’s cold and you don’t get rescued for hours. Just to give you something to think about.

      • your rationalizing is just naive (and wrong) you really don’t have any idea what really goes on when NG drilling is done in an area.Environmental issues are just one .Continuous BS from the industry is another .

        • your saying I have no Idea but yet it is your comment that comes straight out of that lying Movie Gaslies. 95 percent of all gas in oil wells in the United States have been fracked since 1940… the horizontal fracturing is no different just newer and less intrusive. I didn’t realize how little you know until I read your statement above

          • check your info High Volume Hydrofracking was first used in Barnett shale around 1998 .High volume is much different from the methods used before .Also my comments come from my experience with the process over the last 4 yrs. Experience with NG issues and dealing directly with the NG companies .Take it from there .

  2. Yes, frackng has already proven itself and it is NO SHORT TERM EVENT. Not only is it growing in the U.S., now Mexico and England, as well as other nations, are implementing fracking operations.

    You have a choice, either coal or gas. Most of us have selected gas.
    But if you want to go back to coal, then its okay with our miners.

    Hey, the firm is attempting to be as environmentally friendly, as possible, and get their jobs done right, so……..who in world are you to complaint?

    • because the process is being done a lover doesn’t make it totally safe or predictable.It makes it a Cash venture for corporations.Friendly as possible doesn’t cut it for those that have issues caused by this heavy industrial operation .It’s not the NG it’s the process being used .Don’t rationalizes something that has continuous issues since it has been used .

        • and your’s is lack of actual experience with what really goes on in drilling areas .Your only goal is to get to the money you believe will come .Read the Towanda Review and see what is really happening to landowners in Bradford county ,pa.This is just one of the many lies that has come with the drilling .I don’t have to make up stuff the NG industry does it for me !!

          • Employment data, tax data, election data and the faces of those I see everytime I visit Bradford County tell me you’re the odd man out, Bill. You seem to seeing things through a New Jersey lens or something, but, then again, New Jersey is one the biggest beneficiaries of fracked gas. Maybe there is some other reason you so passionately hate what your seem to like a lot?

          • Why is it always a pro gas activist wanting development is only in it for the money and were labeled as greedy. Look me up in the broome county taxes Bill, I am not a large landowner I have many friends in Binghamton that work in the local plumbers and pipefitters union that rent apartments who want it, I have friends that own rock quarries and trucking businesses they want it, I have friends whose only stake in the game is cheaper energy cost for their homes and they want it. Bill your blind to the truth and base your argument on Josh Fox’s lies and are a cult member being lead around by the voiced lies of the well paid activists. Bill, I bet I have been to more wells and frack jobs then you ever thought possible, I studied the accusations and drove to the sites to get the truth, I have spent tens of thousands of my own dollars traveling to well sites, public educational meetings from Montrose to Washington and I never received a dime from the industry.

          • Tom I see and comment on what I have experienced .Reflecting back on my younger days when I lived in NJ is just your tactic for trying to make me look bad.My 4 yrs of dealing with actual issues here makes my opinions sound )except for the money hungry that think they will get rich from the NG .Possibly some day you might really go beyond all your hype and understand where I come from.Until then you just seem like a guy that just wants his ways no matter who gets hurt in the process.

          • TOM …Call my lines whatever you like but deep down inside you know they have merit .You just have another agenda and post anything that supports it .

          • There may well be merit in some of your points, Bill, but you get the big picture so wrong, no one can sort them out. I try to post all your comments unless they’re nothing but anti links so you have the opportunity to convince me and others but, so far, you haven’t convinced me you’re not the one with the agenda. I watched you in action at an air compressor hearing and what I saw was someone simple pushing the Clear Air Council (really Heinz) agenda but prove me wrong with facts.

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  4. Victor:

    Great comment!

    Kentucky’s coal industry has been hit especially hard more to due changing market place conditions (gas & oi competition) than EPA

    Earlier this week an it held its first SOAR Conference in very rural rugged eastern Kentucky, and was sponsored by both parties. It is resulting in our folks waking up, that there are lots of potential commerce opportunities serving the Marcellus Markets, with construction, fabrication, logistics, staffing, and etc. resources. Many coal field industry skills are transferable oil field markets.

    As far as we are concern, please keep the New York State bans, we much more need and want as well will get, the jobs that New York State is throwing away,

  5. @ Vic F…if you spent all the money you claimed on getting educated on the acyual process and still see it as a benefit then perhaps you were in contact with only what you wanted to see and know .Actual issues are connected to this NG drilling processand those that deny them do it for their benefit .I’m not against the NG ,but I am aginst the process used to extract it .since I have been closely connected to it and the many issues I have seen it cause people who get No help from the state or their agencies .As far as royalties go that too is just a bunch of industry BS .This I have proof of due to my actual experience with the numbers .In Bradford county everyday people are getting to see it was all a bunch of crap.The NG drilling industry lives on those that don’t know what really goes on !

    • Actually bill I spent as much time at anti gas seminar presentations by Ingraffea, Slottje, Howarth, Jeanette Barth, Stiengrabber and many many others and investigated their claims (Some true mostly false) as I did at pro gas seminars and non industry goverment agency meetings. You know what to Bill Hustons credit he is the only anti gas activist I ever saw at a pro gas event that wasn’t outside protesting

  6. Yes Tom there is a reason I am so passionate about what I believe .It’s called actual experience with issues and people .No lies ,no movies or leaders telling me about what to say .Actual experience and actual knowledge of processes and reactions from variables .When I read how the industry tries to make people believe HVHF is a safe and predictable process it just makes me laugh .Anyone who has been involved with dynamic processes knows it’s a joke .Only the naive believe this , like in most cases …

      • Yes most don’t know what really goes on and don’t see the light until it hits home .Possibly this is one advantage of growing up in NJ.I have seen it all years before you even knew what it was !Oh and those that thought they knew seem to getting it more and more everyday .Remember I got the real numbers on what goes on.with royalties .

        • Bill F. Your very last sentence: “Remember I got the real numbers on what goes on.with royalties .” I would very much like to see these numbers and where you got them from.

          • since May royalities have been cut in half .That’s all you got to know .Naturally NG price and volume are factors.How many people know that our NG is sold on different markets and to many hubs..Reflecting a price very different from NYMEX Also pipeline companies (charge transmission fees which come out of royalities .Most don’t even know this .

          • Bill,

            This is certainly a legitimate issue but you should also explain that it is not with all companies but a relative few.

  7. Tom also it seems Marcellus NG is being discounted in order to move it due to the large supply.Varies from $1.00 or more on the TGP Z4 -Marcellus …Not good for those here .

    • It is felt that the Marcellus Shell Development is one of the best thing to happen for the region and well as the country, since the arrival of steel mills. Since our tree hungers are taking away our coal industry, we are going to create our new jobs in the exploration and distribution industries.
      There is a choice. Burn coal or burn gas or disconnect from the grid. There are no other cost-effective applications. Either way we are going generate power to keep our economy moving, and create jobs, while generating badly needed tax revenues for.our governments. Market place decisions are to use gas &oil from fracing. That is the decision, and it is being implemented more and more communities each day. If you don’t like it, then you are more than welcome to disconnect from the grid.

      Dress warm because it is cold out there.

      • John this NG obtained from the Marcellus will benefit us as far as energy goes very little .It’s main goal is to be transmitted to the most profitable markets and abroad .For your info I’d don’t use any NG to heat .I also am connected to the electric grid and allow 100% of my energy use to be supplied to the grid from wind power suppliers .I also burn wood which is 85% my fuel source .I am not against NG for energy ,but I am strongly against HVHF to extract it .This is based on my personal experience and thus my reason for my position .Before HVHF I couldn’t care less about energy ventures . Seeing the many issues here has created this .Possibly if the industry would really become responsible in actions rather than words alone I might change some of my gripes .When they screw up they need to face up to it not try to blame other conditions .

  8. Bill F.

    Your level of opposition is based on your strong beliefs in a lie filled documentary. When Natural Gas gets approved in NY and all this bickering and anti paid activist lying comes to an end will you go back to saving the whales…?

    • @ Vic F ….you are so wrong .I am far from a environmentalist of every cause .Only your closed mind thinks this .My experiences with HVHF has created my interest and opinions .The word experience is key here.All you people who want and think you know what goes on have quite a lot to learn .There is plenty more than just the money and BLAM they drill and go away .I really wish you get to experience what really goes on .Possibly you’ll become one of the people I have seen that have issues too .Then you’ll get the message and understand .Maybe you missed it but I mentioned that No film,or group directs my position ….It comes from experience ,I laugh at all you who want what I have seen .

      • Bill please tell me about your personal bad experiences. I would also like to see any correspondance or news clippings that involve your bad experiances as well as written reports from anyone othe then an anti gas source because I think your full of it

        • after 4 yrs of nothing but continous disruption ,and disrespect for residents and the issues caused by the NG co here .It would take quite a bit to post all issues .People living with constant traffic ,water contamination from drilling ,noise,silica dust,disruptions ,pipelines,wells,pads,impoundment ponds,construction of facilities,strangers .compressor stations ( just starting many to come ) and …..the big one royalty not being no where near what was promised .New one … offering only $250.00 an acre with 12 1/2 % now for signing .You want that then get out your pen,You’ll learn the hard way .Just trying to give you some foresight into what has really gone down .Take it for what it’s worth .It’s your life !! Oh I have plenty of Newsclippings and correspondance from PA DEP ,Talisman Energy .lawyers …..you name it ! not that I will open my info up for public degrading .

        • @ Vic how would you like to be forced from your home for over 10 months (with no resolve in sight ) like a couple near me .No one helps them PA DEP is useless at most .Lawyers don’t help much .They take long to get results .If you do get an issue with a driller (some do ) it can take 1 year or much more to get resolved .This has happened and will continue to happen everywhere they drill using HVHF .

    • right now knew offeres for leasing in Bradford county ,PA are as low as $ 250.00 acre with a 12 1/2 royality .The days of the Big bucks are gone my friend and now we see that those that claimed to be our neighbors are trulu nothing but liers !!!This is the truth and the new speel by landmen a coming !! Believe what you want ! I go by what I see going on .

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