How Much Does it Cost to Drill a Single Marcellus Well? $7.6M

A new 92-page study just released by the University of Pittsburgh (copy embedded below) takes a realistic look at the direct costs, and economic impacts, of drilling a single Marcellus Shale gas well. The study, called the “Economic Impact of the Value Chain of a Marcellus Shale Well,” looked in depth at an EQT-drilled well in Washington County, PA. Undergraduate and graduate students from Pitt found that a single well had direct costs of more than $7.6 million. Or think of it this way: More than $7.6 million is invested in a local community, on average, for each and every well drilled.

The costs to drill a well break down this way:

  • Land acquisition and leasing: $2.1 million
  • Permitting: $10,000
  • Vertical drilling: $663,000
  • Horizontal drilling: $1.2 million
  • Hydraulic fracturing: $2.5 million
  • Completion: $200,000
  • Production to gathering: $472,000

In addition to providing a realistic picture of the direct costs associated with natural gas drilling, the study also provides a brief introduction to the Marcellus Shale industry and looks at the different types of economic impact (direct, indirect and induced).

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  • ChillWillikers

    I notice there aren’t any environmental remediation costs factored into this total. Is that because it’s assumed tax payers will pay for that when the time comes?

  • http://marcellusdrilling.com Jim Willis

    Probably because there aren’t any! At least not any of consequence. Unfortunately you have believed the standard pack of lies that shale drilling is evil incarnate and pollutes Mother Earth. Sorry to burst your bubble–but it doesn’t. :-)

  • Tega

    Hi Guys, Im doing a research on fracking. Is there anywhere i could view a cost breakdown (more indepth) on fracking. From the trucks to the pipings and every oter equipment

  • http://marcellusdrilling.com Jim Willis

    Sorry, I don’t have anything better than the research report on this page.

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