Rising natural gas prices during the turn of the current century coupled with technological advances spurred...

Transcribed Image Text:

Rising natural gas prices during the turn of the current century coupled with technological advances spurred interest in the Marcellus shale in northeastern Pennsylvania. Although the thickness of the Marcellus shale is greater in eastern Pennsylvania, the depth to the shale is also greater. Most of the exploratory and development gas wells in eastern Pennsylvania are drilled to depths ranging between 5,000 and 8,000 ft. 5. An average vertical gas well might produce 45,000 cubic feet per day. If the wellhead (top of the well before it flows into a pipeline for distribution) price for natural gas is $7.50 per thousand cubic feet, how many years will it take a gas company to recover its cost to drill a 7,000 ft well? Rising natural gas prices during the turn of the current century coupled with technological advances spurred interest in the Marcellus shale in northeastern Pennsylvania. Although the thickness of the Marcellus shale is greater in eastern Pennsylvania, the depth to the shale is also greater. Most of the exploratory and development gas wells in eastern Pennsylvania are drilled to depths ranging between 5,000 and 8,000 ft. 5. An average vertical gas well might produce 45,000 cubic feet per day. If the wellhead (top of the well before it flows into a pipeline for distribution) price for natural gas is $7.50 per thousand cubic feet, how many years will it take a gas company to recover its cost to drill a 7,000 ft well?

Answer rating: 100% (QA)

Answer It is given that on an average gas well might produce 45000 ft 3 day and ... View the full answer