An Economist article republished in the Winnipeg Free Press does a good job of explaining why natural gas is on the ascendancy in the energy universe, and why oil will soon be in decline. Need evidence? Last year, seven of eight Exxon Mobil projects that were completed were natural gas projects. This year two of three scheduled projects are natural gas related. Royal Dutch Shell says by 2012 half (50 percent!) of its energy output will come from natural gas.
Will Encana Oil & Gas’ gamble in Luzerne County, Pennsylvania pay off? We’ll know soon. Encana is due to start drilling two exploratory wells in Luzerne County this week. The drilling process itself will last 65-75 days.
So why is it a gamble for Encana to drill for gas in Luzerne County? Nobody knows for sure if the Marcellus Shale gas deposits are commercially viable that far south.
Nearly two-thirds of the land in Wyoming County, Pennsylvania is leased by natural gas drilling companies, and recent strong gas production from wells in the northern part of the county have sparked a competition to lease even more Wyoming County land.