The Haynesville Shale formation in the U.S. South will become the country’s largest source of natural-gas production by 2014 or 2015, Chesapeake Energy Corp. Chief Executive Officer Aubrey McClendon said.
The formation in East Texas and northwestern Louisiana will, in turn, be eclipsed by the Marcellus Shale in West Virginia, Pennsylvania and New York by 2020, McClendon said today at an investor conference in Miami sponsored by Deutsche Bank AG and broadcast on the Internet. Chesapeake is the second- largest U.S. independent gas producer behind Devon Energy Corp.
The Barnett Shale in north-central Texas is the largest non-conventional source of gas in the U.S., Chesapeake said in its first-quarter earnings statement on May 4. It yielded about 1.4 trillion cubic feet of gas last year, 5.3 percent of U.S. production of the heating and power-plant fuel, according to the Perryman Group, a financial-analysis firm based in Waco, Texas.
Haynesville Shale gas production may peak at 4 billion cubic feet a day in 2014, or about 1.46 trillion cubic feet a year, consulting firm Wood Mackenzie said in a July 2008 report.
The Marcellus Shale may contain as much as 50 trillion cubic feet of recoverable gas, equivalent to more than two years of U.S. consumption, Terry Engelder, a geosciences professor at Pennsylvania State University, estimated last year.
-- Bloomberg News