In a January 2018 report, the U.S. Energy Information Administration (“EIA”) just forecasted that natural gas is going to remain the leading source of America’s electricity generation for the foreseeable future, reaching 34% of generation next year. Coal is expected to continue to decline rather quickly, while hydropower and nuclear also drop off a bit. Natural gas and nonhydro renewables (wind and solar) will continue to grow. Many analysts believe that a combination of natural gas and renewables is the best way to ensure reliable electricity while protecting the environment.
It is no surprise that a huge amount of this gas production is coming from Pennsylvania, Ohio, and West Virginia. The latest reports show that production from the Marcellus and Utica shale formations in these three states has grown from 1.4 billion cubic feet per day (bcf/d) in 2008 to 24 bcf/d in 2017. Just 2% of the country’s natural gas came from this region in 2008, but the three Appalachian states are producing 27% of America's natural gas now. The EIA says that most of the Appalachian production is displacing Gulf Coast supplies, so that more Gulf Coast gas can be exported to other countries. The petrochemical industry that relies on natural gas is also expanding around the Marcellus and Utica, creating new markets for the still-growing production.
If you are looking to explore and produce in this region, the experts at Cimmaron Land are standing by to help your company secure mineral rights all through Appalachia. Email us today!