1. Should the U.S. export Marcellus gas to other countries?
Presented By: Richard Gilson, Delmis Machado, and Cassie Papp

2. The Marcellus Formation
What: Organic-rich black shale rock formation
Where: Appalachian Basin
Formed When: Devonian era (~ 390 mill. years ago)
Depth: Ranges from 0 to 9,000 ft
Thickness: Ranges from <10 ft to several hundred ft
Why Important: Vast reservoir for oil and natural gas because of high carbon content
Nat gas extracted unconventionally with horizontal drilling and hydraulic fracturing
Info from the DCNR
Image by American Association of Petroleum Geologists

3. Why Do We Use Marcellus Gas?
Many benefits to using natural gas as an energy source
Have technology to extract
Inexpensive
Marcellus Formation has large, easily recoverable reserves!
Current estimate: 177 trillion cubic ft
Benefits: high energy density, cleaner fuel than other fossil fuels, reliable, and easy to transport
Largest source of natural gas in the US. Estimate from U Penn

4. How Would Marcellus Gas Be Exported?
Transported first by underground pipelines
Liquified Natural Gas
Transported via cryogenic tanks on trucks, ships, or barges
Image by EIA
Transmitted through pipeline to to an export terminal. Most of the Marcellus would go to the Cove Point facility in Maryland. Shown on map as green triangle on the east coast, currently under construction, estimated to be complete in Old import station converted.
Image by Energy Education

5. History of Marcellus Gas
1976 to 1992, the U.S. Department of Energy funded the Eastern Gas Shales Project.
Five wells in the Marcellus in Pennsylvania
Range Resources drilled an unsuccessful well to the Oriskany Sandstone in 2003.
In late 2004 Range completed the well in the Marcellus, using hydraulic fracturing techniques developed for the Barnett, and started producing the well in 2005.
By 2008 the Marcellus Formation had become the focus of shale gas development, starting in Pennsylvania.

6. Continued...
In July 2010, the U.S. Department of Labor announced a $5 million grant to train workers for Marcellus shale drilling.
As of 2008, only a few new Marcellus wells were actually in operation.
Planning for infrastructure projects was reported in West Virginia, Pennsylvania, and Ohio to accommodate the growth during this period, including for pipeline and water treatment services.
Several pipeline projects completed in 2013 carry Marcellus gas to New York and New Jersey.

7. Pros of Exporting: Economic Opportunity
Other countries have high demand and lack of supply
U.S. natural gas prices lower than other countries’ liquified natural gas prices
Transportation costs NOT a problem
Graph from Shows US has slightly declining natural gas prices around 4 US cents, while other countries have increasing prices that are all higher than US. Japan is around 18 US cents
Profits from natural gas sale greater than costs to transport to and from Southeast Asia. Overall, NEW PROFIT
Image by University of Pennsylvania

8. Pros of Exporting: Geopolitical Relationships
Current global market for natural gas is dynamic and unstable
Importing countries dependent on other nations for LNG
Suffer consequences
If U.S. joins global LNG market:
Provide allies reliable energy source
Strengthen economic and geopolitical relationships at expense of other nations
Suppliers such as russia and iran

9. Pros of Exporting: Environmental Initiatives
Reduce global carbon footprint
Benefits countries interested in a cleaner fuel than coal and oil
Burning NG produces approx. 29% less carbon dioxide than oil and approx. 44% less than coal per btu
U Penn
Image by Natural Gas Issues and Trends

10. Cons Of Exporting: The Chemical Industry
-The Chemical Industry uses natural gas to make their plastics for exports.
-The large abundance of natural gas our country has from Marcellus Shale and similar formations gives the Chemical Industry a huge pricing advantage over the competitors.
“If we allow the world gas price to come to this country by exporting gas, it will destroy the benefits of plentiful cheap gas.” - Andrew Liveris, Chief Executive Officer at DOW Chemical

11. Cons Of Exporting: Health Issues
-contamination of groundwater
- air pollution
- methane pollution
- fracking induced earthquakes
-disposal of waste

12. Cons of Exporting: International Trade Agreements
-Article I of GATT (General Agreements on Tariffs and Trade)
-Complications due to the way the United States deals with China not wanting to export important materials

13. Our Conclusion about the Controversy

14. References:
Caruso, Vincent A. (2014 March). LNG exports: Exporting natural gas benefits industry and America. Retrieved from The American Oil and Gas Reporter:
Krohn, John, Skarzynski, Nicholas, & Teller, Katie. (2016, March). Growth of domestic natural gas production leads to development of LNG export terminals. Retrieved from the U.S. Energy Information Administration:
Marschang, Ryan, Lee, Steven, Hewitt, Ann, & Moeller Tyler. (2014, April). Export of Marcellus Shale Gas. Retrieved from University of Pennsylvania Scholarly Commons: repository.upenn.edu
Pennsylvania Department of Conservation and Natural Resources. (n.d.). Marcellus Shale. Retrieved December 2, 2016, from