The Shale Resource - A Global Play
• Global Reserves 6.6 QCF ~ 140 basins & 700 shale plays • China 1.27 QCF • United States 862 TCF (Marcellus @ 141) • Argentina 774 TCF • Mexico 681 TCF EIA Estimates
Pipeline Construction
Each mile of pipeline represents $1 -‐ $2 million investment 2,000 miles class 1 = $2 -‐ $4 Billion Annually (PA)
Explora&on and Produc&on (Upstream) Gathering, Compression, Trea&ng, Processing, Transporta&on (Midstream) Petrochemical and Refining (Downstream) Gathering Pipelines
Gas Oil, Gas, Water
Gas Trea&ng, Processing and Frac&ona&on
Compression
Well
Interstate Gas Pipelines
Oil
Natural Gasoline
Ethane
Home Hea&ng, Cooking Transporta&on, Industrial fuel
Plas&cs
Petrochemical Plants Propane, Butanes, Gasoline's
LNG (Liquefied and shipped)
Glad Baggies
Butanes Propane
Interstate Oil Pipelines
Industrial Boilers/Furnaces
CNG (Fleet Fuel, Buses, etc)
Propane
Water Injec&on Well
Oil and/or Gas Reservoir 5,000-‐ 16,000 ; deep
Electric Power
Natural Gas (Methane)
Separa&on Water
Home Hea&ng/Cooking
Styrofoam Alcohols Other Chemicals Unleaded Gasoline Diesel
Oil Refineries
Jet Fuel Asphalt Other
US Manufacturing Renaissance Chemical Industry Impact • • • •
17,000 direct jobs 395,000 indirect jobs $16.2B capital investment $132.4B increase US economic output
Fertilizer Projects • • •
6 Major Projects (~$10B) US Imports 50% currently Gas accounts for 70% of cost
Ethylene • •
Capacity increase 59,465 78,419 (2011 to 2017) 5 new facilities – Dow, Shell, Chevron, Formosa, Sasol – Dow restarting Source: American Chemistry Council
US Manufacturing Renaissance Iron & Steel Factories – Expansion & New Facilities Across US (14)
Tire Production Plants – 3 New in South Carolina
Plastics – New, expansion, re-shoring (100’s)
Chemical Facilities – Specialty, Large Scale, Regional
4000 3500 3000 2500 2000
1968 1608
1500
1362
1000 818
500 335
0
115
2007
2008
2009
2010
2011
2012
Not All Good News
Midstream Supply Chain Meter Runs Separators Production Tanks Pig Launchers Pig Receivers Pipe Risers
Midstream Supply Chain Natural Gas Pipeline
• Gathering
• Transmission
• Distribu&on
Midstream Supply Chain
Midstream Supply Chain
Photo Courtesy Penn State Marcellus Center
Midstream Supply Chain
Midstream Supply Chain • • • • • • • • •
Measurement Gathering Compression Construction Processing Treating Land reclamation Transportation Others…
Midstream Supply Chain • Gas field roustabouts • Workers • Safety Equipment • Safety Training • Drug Screening • Environmental support • Diesel technician/ mechanic • Measurement and calibration • Pipeline – Gathering/midstream – Transmission • Steel pipe manufacturing • Specialized pipe welding • Inspection / testing • Compressors • Steel buildings
• Construction/Fabrication • Compressor stations • Processing facilities • Custody transfer stations • Well head • Meter runs • Storage tanks • Site reclamation • Machine shops • Earth moving • Commercial trucking • Service yards/buildings
Mab Henderson mwhenderson@psu.edu (570) 244-‐1128
Photo Courtesy Penn State Marcellus Center
Thank You www.marcellus.psu.edu www.naturalgas.psu.edu