"Federal government analysts on Monday slashed their estimate of the natural gas reserves in the Marcellus Shale formation, and at least one major producer announced plans to cut in half its expenditures on new gas leases in the wake of dropping prices."
"The U.S. Department of Energy cut its estimate of the Marcellus reserves from 410 trillion cubic feet of natural gas to 141 trillion cubic feet, citing better production information that emerges as drilling operations in the region mature and the exclusion of data from the pre-shale area.
"Drilling in the Marcellus accelerated rapidly in 2010 and 2011, so that there is far more information available today than a year ago," said the DOE's Energy Information Administration.
Last summer, a new estimate from the U.S. Geological Survey had caused a stir, because it was both much smaller than the existing EIA numbers and much greater than the previous USGS figures."
Ken Ward Jr. reports for the Charleston Gazette January 23, 2012.
SEE ALSO:
"DOE Report Projects Greater Coal Production Drop" (Charleston Gazette)
"Chesapeake to Cut Number of Gas Rigs" (New York Times)
"Natural Gas vs. Coal -- Where Is the Floor for Natural Gas?" (Inside Futures)
"Natural Gas Glut, Low Prices, Prompt Chesapeake To Cut Exploration And Production" (AP)
"US Coal Prices Rise on Heels of Natural Gas Price Spike" (Platts)
EIA Annual Energy Outlook Early Release Executive Summary
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