Shale: Improving Safety through Affordabilitynatural gas 3,820 unconventional well pads 18+ billion...

MARCELLUSCOALITION.ORG | @MARCELLUSGAS

Shale: Improving Safety through Affordability

David J. SpigelmyerSeptember 4, 2019


Our Membership• 150+ diverse members• Producers, midstream and suppliers

Our Focus• Public:

- Prepare region for long-term development- Demystifying shale development- Workforce readiness- Addressing landowner and public issues

• Operational:- Continuous improvement/training- Information sharing- Focus on safety and compliance- Developing responsible practices

• Use:- Maximizing benefits of affordable natural

gas to secure out region’s energy future


Associate Members are an integral part of

the MSC and the industry's robust

supply chain.More than 95% of the natural gas in Pennsylvania is

produced by MSC member

companies. The MSC Board of Directors

consists of 33 major producer and midstream

companies in theAppalachian

Basin.

About MSC

2


We recognize that to succeed in business, we not only embrace these principles, we live by them each and every day. This will be our legacy.

We provide the safest possible workplace for our employees, with our contractors, and in the communities in which we operate;

We implement state-of-the-art environmental protection across our operations;

We continuously improve our practices and seek transparency in our operations;

We strive to attract and retain a talented and engaged local workforce;

We are committed to being responsible members of the communities in which we work;

We encourage spirited public dialogue and fact-based education about responsible shale gas development; and

We conduct our business in a manner that will provide sustainable and broad-based economic and energy-security benefits for all.

3 | MARCELLUS SHALE COALITION

Our Legacy


Committee Structure


4


LegendMarcellus /Utica Formation

Wet Gas Region

Feedstock: “Wet Gas” Region

Wet Gas>1.2MMBtu+ per Mcf

Dry Gas<1.2 MMBtu per Mcf

5


11,003 unconventional wells*• 521 inactive• 624 shut in• 731 drilling not completed

9,082 unconventional wells producing natural gas

3,820 unconventional well pads

18+ billion cubic feet/day• 6 trillion+ cubic feet/year• 32% of total U.S. shale gas production

20% of total U.S. natural gas production

2nd largest natural gas producer in U.S.

Drilling Activity in PA

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* March 2019 (most recent data available)

Drilling rig in Potter County, PA


29.2

20.16

5.46

0.2

1.26

0.75

0 5 10 15 20 25 30 35

2017

2008

Trillion Cubic Feet

Prod

uctio

n v. Con

sumption

Pennsylvania Natural GasNet Importer to Net Exporter

2008 vs. 2017

PA Consumption

PA Production

U.S. Production

Source: U.S. Energy Information Administration Marcellus Shale Coalition

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PA: World-Class Producer


332

817

1600

1958

1351

1218 1372

789

504

812

779

434

576

2005

3365 35

64

2648

2966 31

58

2076

1321

2020

1874

916

0

500

1000

1500

2000

2500

3000

3500

4000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019thru July

Unconventional Well Activity2008‐2019

Spud Permitted 8

Drilling Activity in PA


9

Fueling the Nation

92% 52% 31% 13% 11% 5% 14%


10

By The NumbersTop Ten Producing Counties

by Volume (2018)

County Production (MCF) % of PA Production # of Producing Wells

Susquehanna 1,464,724,606 24% 1341

Washington 1,160,009,919 19% 1346

Greene 798,336,876 13% 1059

Bradford 765,241,867 13% 1193

Lycoming 355,824,382 6% 806

Wyoming 344,825,491 6% 243

Tioga 301,415,390 5% 623

Butler 216,607,396 4% 456

Sullivan 135,481,511 2% 119

Westmoreland 77,804,422 1% 229


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By The Numbers


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Where Are We On Price?

* August 2019 Monthly Bidweek Price


Wholesale electric prices down 41% since 2008

Natural gas prices for end-use customers down 56% -76% since 2008

Average annual savings > $1,100 - $2,200 per household

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Benefiting Consumers

Lower Prices = Customer Savings


Utility PGC Rate / mcf % Change CustomerSavings**

2008* 2018* 2008-2018 AnnualPECO $13.16 $5.05 - 62% $1,460

NFG $10.86 $4.50 - 59% $1,145

PGW $13.02 $3.62 - 72% $1,692

Columbia $15.94 $3.84 - 76% $2,178

UGI $13.26 $5.89 - 56% $1,327

UGI Penn $11.68 $4.33 - 63% $1,323Peoples/Equitable $15.89 $4.53 - 71% $2,045

* PUC Purchased Gas Cost (PGC) Rate in Effect Prior to Annual Review: 2008 & 2017

** Residential heating customer using 15 MCF/month

Benefiting ConsumersLower Prices = Customer Savings

2008 - 2018

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15Source: PA Department of Environmental Protection – Energy Assessment Report

PA: A Balanced Portfolio


16

Historic Economic Investment


17

Natural Gas End Use

30%

Source: EIA Natural Gas Monthly – May 2019


Protecting Our Environment

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19



2017 16,793 inspections 97.7%

2018 19,617 inspections 98.3%

20

Unconventional Natural Gas Environmental Compliance Rate



Enhancing Air Quality

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22Source: PA Department of Environmental Protection – Stationary Source Emission Inventory 2012‐2015

56,000

27,700

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

1995 2005 2015

Tons/Yea

r

Protecting Our Air:Volatile Organic Compounds Reduction in PA

1995 ‐ 2015

VOC Emissions in PA

51%



23

1,300,000

231,592

580,000

164,938

‐

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1990 1995 2000 2005 2010 2015

Tons/Yea

r

Protecting Our Air:SOx & NOx Reductions in PA

1990‐2015

SOx Emissions in PA NOx Emissions in PA

82%

72%

Source: PA Department of Environmental Protection – Stationary Source Emission Inventory 2012‐2015


Leading on Climate Change

24Source: PA Department of Environmental Protection –PA Greenhouse Gas Inventory

122

86

5%

27%

0

5

10

15

20

25

30

50

60

70

80

90

100

110

120

130

2005 2010 2011 2012 2013 2014 2015

% of P

AElectric Gen

eration

MMTC

O2e

Reducing PA's GHG Emissions through Increased Use of Natural Gas

2005 ‐ 2015

MMTCO2e from Power Generation PA Natural Gas Power Generation


Leading on Climate Change

25Source: U.S. Environmental Protection Agency – Inventory of U.S. Greenhouse Gas Emissions & Sinks

7,320

6,511

6,000

6,200

6,400

6,600

6,800

7,000

7,200

7,400

7,600

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

MMTC

O2e

U.S. Greenhouse Gas Emissions2005 ‐ 2016

U.S. GHG Emissions

11%


The MSC has conducted the following trainings in collaboration with state and federal regulatory agencies:

• Pipe Up: Pipeline Safety, Regulatory and Operational Experts Share Their Knowledge

• Appalachian Oil and Gas Emergencies Workshop• Successful Managing Horizontal Direction Drilling, Slope Stabilization

and Landslide Mitigation • Transportation Safety Day and Flagger Certification • Successfully Preparing for and Managing a Well Control Incident• Preparation & Action: Communications Strategies for Navigating a

Crisis• PA DEP Pipeline E&S Workshop• NORM/TENORM Radiation Safety Training• FERC Environmental Seminar• Managing Solid Waste: From Analysis and Reporting to Permitting and

Disposal• PA DEP Air Quality General Permit Training

Focus on Safety

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Upcoming training:

Pipeline Safety, Operations and MaintenanceBlair County Convention CenterSeptember 12, 2019

• Pipeline Safety Update• PHMSA Class I Gathering Line Regulations• Pipeline Construction, Integrity and Operation

Management• PA DEP and Industry Collaborate: HDD and Pipeline

Guidance Document

For more information and to register, please visit:www.marcelluscoalition.org/events

Training Programs

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PA One Call

MSC supports Act 50

PA Underground Utility Line Protection Law, including Mapping and Notification for Class One Facilities

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SHALE INSIGHT™


Thank you!

Marcelluscoalition.org

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Shale: Improving Safety through Affordabilitynatural gas 3,820 unconventional well pads 18+ billion...

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