The Utica and Marcellus shales have bullish futures and could reverse the traditional flow of natural gas from south to north and generate instead new east-to-west traffic in the future, says Bentek Energy of Houston.
That would be driven by increased natural gas production in Ohio, Pennsylvania and West Virginia plus growing demand for natural gas in the Southeast over the next 10 years, the company said in a private report based on its modeling.
That means the Northeast would switch from the largest demand region for natural gas to a net supply region, the firm said,
The report says the Utica and Marcellus plays will account for more than one third of the increase in U.S. natural gas production through 2013, while nearly half of the increase for demand in gas will come from the Southeast.
Bentek analyst Rick Notarianna said the Marcellus and Utica shales now produce 18 percent of the country's 64 billion cubic feet of natural gas per day.
They are expected to produce 25 percent of the projected 77 billion cubic of natural gas per day in 2023, reports the Shale Oil and Gas Resources in a summary of the Bentek study.
The report is only available by buying it from Bentek, a unit of Platts, the energy and petrochemical information and pricing company
Most of that gas will come from the Marcellus initially with the Utica growing substantially from 2018 to 2023, Bentek said.
Notarianna said the demand in the Southeast will be powered by power plants switching from coal, the petrochemical industry and pipelines to the Gulf Coast.
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
The Ohio Environmental Council, a statewide eco-group based in Columbus.
Earthjustice, a national eco-group.
People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.
Concerned Citizens of Medina County, a grass-roots group.
No Frack Ohio, a Columbus-based grass-roots group.
Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.