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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  


2 Penn State Marcellus Matt Henderson