A
midst the slowdown in oil and natural
gas production in West Virginia,
the industry remains a strong and
vibrant part of our state’s economy. Much
of the blame for the current slowdown can
be attributed to the Saudis for flooding the
American oil and natural gas market, thus
driving the price of natural gas to artificially
low levels. American companies are
reluctant to invest in new drilling while these
low prices exist. Now is the time for the oil
and natural gas companies to drill and seek
an expanded transportation infrastructure.
We are at a point in Marcellus and Utica
operations that we must now build extensive
pipelines to move large volumes of oil and
natural gas coming from the ground.
In a recent speech to the Parkersburg/
Wood County Area Economic Development
Roundtable, Senator Joe Manchin
suggested the state should directly invest
in building major transportation pipelines
throughout the state. By doing so, West
Virginia would be ahead of the game
once drilling resumes. Currently, seven
pipeline infrastructure projects are on the
table, encompassing 1992 miles of new
pipeline expansion. The first of these
projects is expected to be complete in
December 2015. Columbia Pipeline and
Energy Transfer expect completion of two
more pipelines in 2017; and Dominion,
EQT, and Columbia have 2018 completion
dates on four other pipeline projects. The
cost of these projects is estimated to be
$16.7 Billion and will give the industry the
capacity to move 14.5 Billion Cubic Feet of
natural gas per day.
West Virginia has 1751 horizontal wells
in Marcellus, and 2 additional Utica wells as
of September 2015. Marcellus production
exceeded 16 Billion Cubic Feet per day in
June 2015, and Marcellus/Utica combined
natural gas production currently exceeds 18
Billion Cubic Feet per day. Utica wells are
currently producing at a rate three to four
times that of Marcellus. EQT Corporation
has permits to drill the states third Utica well
in Wetzel County; and if their past history
is an indicator, it will be a very prolific well.
They currently have the highest output
natural gas well in history, producing 73
Million Cubic Feet of natural gas per day in
Green County Pennsylvania.
West Virginia must be prepared to handle
the production rates that are anticipated
by the industry. The total number of wells,
and the high volume of production makes
investment the right decision for West
Virginia. The anticipated growth will bring
investment, jobs, economic development,
and prosperity to a state that has, for too
long, been at the bottom.
The West Virginia Legislature is working
hard to promote policies that will enhance
and promote this valuable resource. The
House Committee on Energy is working
with outside agencies and organizations to
assist the expansion in a way that is fair to
all concerned. The Independent Oil and
Gas Association of West Virginia (IOGA)
and the West Virginia Oil and Natural Gas
Association (WVONGA) have contributed
volumes of information on technology and
development related to future expansion.
The Committee’s involvement with the West
Virginia Farm Bureau, West Virginia Surface
Owners Rights Organization, West Virginia
Land and Mineral Owners Association,
and the Royalty Owners Association of
West Virginia has established a balanced
fairness in any legislation that is presented.
Because all interests are served, the oil
and natural gas industry in West Virginia
will flourish, and our state will be a better
place to work and raise a family. Properly
managed, West Virginia’s economy can and
w