Chevron is involved in every phase of natural gas development. We are leasing land and exploring for natural gas. We are conducting pilot projects to test technologies and evaluate gas shales for future projects. We are drilling and completing new wells. And we are producing, processing and distributing natural gas from shale, which, like other dense or “tight” rock formations, can also produce oil and natural gas liquids.
Chevron produces natural gas from the Marcellus Shale, which underlies a large area of the eastern United States, and the company is drilling to substantially increase production there.
The company has significant shale and tight resources with 7 million net acres (28,300 sq km) in countries around the world, including the United States, Canada, Poland, Romania, Ukraine and Argentina.
In the United States, Chevron produces or is working to produce natural gas from shale formations in Michigan, Ohio, Texas and Pennsylvania. Chevron is one of the largest leaseholders in Pennsylvania, with more than 700,000 net acres of leases in the Marcellus Shale. The Marcellus is one of North America’s largest and richest shale gas resources. It runs beneath large swathes of New York, Pennsylvania, West Virginia and eastern Ohio and dips into neighboring states. Chevron is undertaking a robust drilling program to grow its Marcellus production.
Chevron also has a strong position in the Utica Shale, an undeveloped formation beneath the Marcellus. In 2013, we drilled seven exploratory wells to acquire data necessary for potential future development.
We also are evaluating prospects in the Antrim Shale and other gas shales in Michigan. In 2013, we began drilling a Collingwood/Utica Shale exploratory well.
In East Texas, we continued development of the multiple stacked reservoirs in the area, including the Travis Peak, Cotton Valley, Bossier and Haynesville zones. In 2010, Chevron completed a pilot drilling program in the Haynesville Shale that identified 2 trillion cubic feet of potentially recoverable natural gas. Chevron holds acreage in the Haynesville Shale beneath mature conventional oil and gas fields.
In 2013, Chevron increased its owned and operated properties in western Alberta’s Duvernay Shale formation to about 325,000 net acres (1,315 sq km). We also added to our holdings in the Montney tight rock formation. Drilling for these tight resources continued. Nine Duvernay wells were completed and tied into production facilities by early 2014.
Chevron also has a nonoperated working interest in 322,000 net acres (1,303 sq km) in the Horn River and Liard shale gas basins in British Columbia.
Chevron holds four shale concessions in Poland: Frampol, Grabowiec, Krasnik and Zwierzyniec. In 2013, the first exploration wells were drilled in the Zwierzyniec and Krasnik concessions. A 3-D seismic survey is under way on the Grabowiec concession and is planned to be completed in the second quarter of 2014. Exploration activities are planned to continue during 2014.
Chevron owns and operates a concession in the Barlad Shale in northeast Romania. Drilling of the first exploration well is planned to begin in the second quarter of 2014. In addition, Chevron holds a 100 percent interest and operates three concessions in southeast Romania. In October 2013, we began 2-D seismic exploration across two of the three concessions.
In 2013, Chevron successfully negotiated with the government of Ukraine for a 50 percent interest in and operatorship of the 1.6 million-acre (6,350-sq-km) Oleska Shale block in western Ukraine. As of early 2014, the Joint Operating Agreement terms were being negotiated.
During 2013, Chevron drilled the second and third exploratory wells for shale gas in China’s Qiannan Basin, in the southwestern province of Guizhou. Both wells were unsuccessful.
During 2013, Chevron completed four exploratory wells in El Trapial concession, targeting oil and gas in the Vaca Muerta Shale. We plan to continue production-testing the wells during 2014. Chevron signed agreements during 2013 to advance the Loma Campana Project to develop the Vaca Muerta Shale.
Updated: July 2014