JurisdictionUnited States
Development Issues in the Major Shale Plays
(Dec 2010)


Joseph H. Frantz, Jr.
Range Resources Appalachia LLC
Canonsburg, Pennsylvania

JOSEPH H. FRANTZ, JR., a native of Pennsylvania, graduated Penn State in Petroleum Engineering in 1981. He started with Getty Oil in Bakersfield, California, and worked on his first shale well in 1983. He then worked in Houston for a few years, and moved to Pittsburgh in 1990. He consulted for 16 years with S. A. Holditch and Associates and Schlumberger on almost every shale reservoir in the U.S. Joe started with Range Resources in 2009 as Vice President of Engineering, working on completions, production, and reservoir engineering. He worked on first Fayetteville, Conasauga, and Marcellus shale wells.

I. Big Picture

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Range Resources

• Natural gas production company

• Included in S&P 500

• Committed to Pennsylvania

• Regional Headquarters in Washington County

• Pioneered Marcellus Shale, 2004

• More than $1 billion invested in Pennsylvania

• Employs more than 250 Pennsylvanians, thousands of indirect jobs

What is the Marcellus Shale?

• Large, natural gas rich, shale formation spanning tens of million of acres

• Actual piece of Marcellus Shale core sample

• Natural gas and hydrocarbons are trapped inside the solid shale

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U.S. Department of Energy, U.S. Shale Basins

Marcellus Shale Formation

Not all of the Marcellus will produce the same...

Barnett provides 5% of US natural gas

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Why Natural Gas?

• Secure

• Abundant

• Domestic

• Clean

• Versatile

Beyond the Flame
Natural Gas drives other industries as feedstock

• Plastics

• Glass

• Metals

• Chemicals

• Fertilizers

• Pharmaceuticals

• And many more

According to Natural Gas Supply Association

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Gas is the Future, says Wall Street Journal

"More than 5.8 million Americans are employed directly or indirectly by the natural gas industry."

According to Wall Street Journal, January 15, 2009 "Energy Jobs: Blue is the New Green, Gas Lobby Says"

Gas is the Future, says EIA

"Electricity from natural gas will account for 57% of new capacity through 2030, more than all other sources combined"

According to EIA Annual Energy Outlook 2009 Reference Case Presentation - December 17, 2008

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Economic Impact Study
Marcellus Shale report from economists and industry experts at Penn State

• $14 billion annual impact and 98,000 jobs

• $800 million in state/local tax revenue


• $265 billion cumulative impact and 176,000 jobs

• $15 billion state/local tax revenue

*30 percent tax revenue remains local

Commitment to Education

• Little public outreach efforts in the past

• Allowed others to tell our tale for decades

• Conducted business in regions familiar with the industry

• In Pennsylvania, the state is very comfortable with steel and agriculture and high technology; despite teaching the world how to drill, the modern natural gas industry is an unknown

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II. How Do We Do It?

Marcellus Shale Development

State-of-the-art Technology - Proven Approach - Industry Expertise

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Leases are Acquired

• Oil & gas owners (frequently the surface owner) are offered compensation for leasing rights to their property

• In addition to initial lease payment, oil & gas owners also receive royalties on natural gas sold from the property

Geoscientists determine drilling locations

• Surface, subsurface maps

• 3-D seismic measurements

• State-of-the-art Technology

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Seismic Survey

Site Preparation

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• State-of-the-art technology

• Multiple wells, single site

• Footprint is 3-5 acres

Range's pioneering spirit continues...Patterson 315 was the first "walking" Marcellus Shale drilling rig

Generalized casing design for a Marcellus Shale gas well

Water Protection

"The simple reality is that stimulation using this technique does not impact ground-water bearing zones." --

Robert W. Watson PhD PE is Emeritus Associate Professor of Petroleum and Natural Gas Engineering and Environmental Systems...

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