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)  

Separa&on  Oil,  Gas,  Water  

Oil  and/or  Gas  Reservoir  

5,000-­‐  16,000  ;  deep  

Well  

Compression  

Gas  Trea&ng,  Processing  and  Frac&ona&on  

Water  Injec&on  Well  

Natural  Gas  (Methane)  

Home  Hea&ng/Cooking  

Electric  Power  

LNG  (Liquefied  and  shipped)  

Industrial  Boilers/Furnaces  Interstate  Gas  Pipelines  

Gas  

Oil  Water  

Petrochemical  Plants  

Ethane  

Propane  

Oil  Refineries  

Butanes  

Natural  Gasoline  

Unleaded  Gasoline  

Diesel  

Asphalt  

Jet  Fuel  

Other  

Glad  Baggies  

Plas&cs  

Alcohols  

Styrofoam  

Other  Chemicals  Propane,  Butanes,  Gasoline's  

Home  Hea&ng,  Cooking  Transporta&on,  Industrial  fuel  

CNG  (Fleet  Fuel,  Buses,  etc)  

Interstate  Oil  Pipelines  

Propane  

Explora&on  and  Produc&on  (Upstream)  Gathering,  Compression,  Trea&ng,  Processing,  Transporta&on  (Midstream)  Petrochemical  and  Refining  (Downstream)  

Gathering  Pipelines  

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

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

US Manufacturing Renaissance

115  

335  

818  

1608  

1968  

1362  

0  

500  

1000  

1500  

2000  

2500  

3000  

3500  

4000  

2007   2008   2009   2010   2011   2012  

Not All Good News

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

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

•   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

•   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

Thank  You  www.marcellus.psu.edu  www.naturalgas.psu.edu  

   Mab  Henderson  mwhenderson@psu.edu  (570)  244-­‐1128      

Photo  Courtesy  Penn  State  Marcellus  Center