A History of Three Shale Formations: Part Two – The Marcellus Shale

The History of the Marcellus Formation

The roots of natural gas extraction trace back to 1821 in Fredonia, New York, where local residents united to drill a well merely 27 feet deep near Canadaway Creek. A crude pipeline constructed from hollow logs and tar-soaked rags transported only enough gas to create the light of a couple candles.

By 1850, the well's depth extended to 70 feet. In 1858, a second well was drilled to more than 200 feet deep, kindling a fervor for exploration along Lake Erie's shoreline that reached Northeast Ohio. By the turn of the 20^th century, nearly all homes and businesses in the area used natural gas sourced from the region’s shale.

Black, organic-rich shales, fractured shales and siltstones that are above and interbedded with the black shales provide the formation’s natural gas supply. It became commonly known that the Marcellus held a significant amount of natural gas, however accessing it in a way that generated a consistent flow of the fuel remained elusive.

That is, until hydraulic fracturing was developed. The introduction of fracing forever changed the outlook and access of the Marcellus.

The Marcellus Shale Today

The Marcellus Shale extends from parts of New York, Pennsylvania, Ohio, West Virginia, Maryland, and Virginia. By the end of 2022, the play dominated U.S. natural gas production. It’s emerged as a prime spot for M&A activity in the oil and gas sector, and has produced approximately 80 trillion cubic feet (Tcf) of natural gas since 2007.

Leading shale performers collectively produced 2.9 million barrels of oil equivalent per day (MMboe/d), 30,065 barrels per day (bbl/d) of oil, and 17.3 billion cubic feet per day (Bcf/d) of gas in the Marcellus Shale during the first half of 2022. Continued activity and investment in the formation underpins expectations for the play to produce 38 Bcf/d in select areas by 2025.

The abundant natural gas resources of the Marcellus Shale not only benefit North America but also European countries. With current geopolitical tensions in Eastern Europe, the liquid natural gas (LNG) the play supplies enables the United States to continue to be Europe’s top LNG seller which helps European economies recover. As depicted in the pie chart below, Marcellus production significantly contributes to the broader U.S. – and global – energy landscape.