May 2015, Vol 242, No. 5


The Shale Gas Revolution and Effects on the Northeast Gas Market

Without a doubt, the biggest factor impacting the U.S. gas market is the development of shale gas in the Marcellus Shale play, located in northern Appalachia and the Alleghenies. The shale gas revolution in the U.S. – specifically in Pennsylvania and West Virginia – is nothing short of a revolution for the entire country. To illustrate the scale of this change, let me take you back to the 2008-09 period. At that time, production in Appalachia was about 2 Bcf/d out of about 50 Bcf/d nationally. At about 4% of U.S. production, the Marcellus Shale production came from a bunch of small producers, and it was a total sideshow: It didn’t matter for U.S. production or energy secur

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