Utica shale play equal to Marcellus play, West Virginia University researchers say - Columbus - Columbus Business First

Utica shale play equal to Marcellus play, West Virginia University researchers say

Utica shale may hold 20 times more natural gas than previously thought

Jul 15, 2015, 10:19am EDT

Tom Knox Reporter Columbus Business First

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John Lauer | Business First

The Utica shale play is growing quickly, but there are several other more-established… more

University researchers and government agencies are pumping up the Utica shale play.

It turns out that the natural-gas heavy underground formation that's led to millions of dollars in investment in eastern Ohio probably holds more gas than initially estimated.

"(The Utica) is much larger than original estimates, and its size and potential recoverable resources are comparable to the Marcellus play, the largest shale oil and gas play in the U.S. and the second-largest in the world," according to a new study organized by West Virginia University.

The Utica, which is also increasingly being drilled in West Virginia and Pennsylvania, could have recoverable volumes of 782 trillion cubic feet of natural gas and almost 2 billion barrels of oil. That's about 20 times more than the U.S. Geological Survey's estimate just three years ago of 38 trillion cubic feet of gas. It also projected 940 million barrels of oil then.

The Utica Shale Play Book Study comes from two years of research sponsored in part by a consortium of drillers in the area, including Chevron Corp. (NYSE: CVX), EnerVest Ltd. and Range Resources (NYSE:RRC).

“This is a landmark study that demonstrates the vast potential of the Utica as a resource to complement – and go beyond – what the Marcellus has already proven to be,” Brian Anderson, director of West Virginia's Energy Institute, said in a statement.

Of course, while all that gas may be available, drilling is down as the industry struggles with low oil and gas prices. Consol Energy Inc. (NYSE:CNX), active in the Utica and Marcellus, just announced a new round of layoffs. Still, gas production in the Utica is the only bright spot amid a drab monthly report from the U.S. Energy Information Administration. It projects the Utica as the only major shale play in the U.S. to increase its natural gas production from July to August. The projected increase is small, but other shale regions, including the Marcellus, are expected to see a net decrease in production.