An Energy Bright Spot, Marcellus Shale

By July 1, 2008Energy

Another reference to Dominion, the third here in a week, but this time the topic is natural gas. The Marcellus Shale, a natural gas-bearing formation in the Appalachian states, is promising indeed. From a Dominion news release:

RICHMOND, Va. – Dominion (NYSE: D), one of the nation’s largest producers and transporters of energy, has agreed to assign the Marcellus Shale natural gas drilling rights on approximately 205,000 Appalachian Basin net acres to Antero Resources for about $552 million, resulting in after-tax proceeds of approximately $325 million.

And …

In addition, Dominion is announcing the proposed development of Dominion Keystone, a pipeline project that would transport new natural gas supplies from the Appalachian Basin to markets throughout the eastern United States. The pipeline project is a response to the many Appalachian producers who are seeking reliable natural gas pipeline transmission for increased production from conventional drilling, coalbed methane and Lower Huron Shale, as well as Marcellus Shale.

There’s excitement in New York reports the Buffalo News: “Huge natural gas deposit stirs talk of boom in Southern Tier.” Possibilities in Maryland, the Sun reports. And Pennsylvania is the hot spot:

With energy companies rushing to lock up rights to suddenly valuable deposits of natural gas, royalties earned by Pennsylvania landowners will ripple through the broader state economy, according to a Penn State University forecast.

And some words of reasonable caution from conservationist groups related in The Daily Star, Oneonta, N.Y., “Cons of Gas Drilling Heard at Meeting.”

 

 

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