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Chevron acquires more shale acreage

May 5, 2011 at 7:46 AM   |   Comments

SAN RAMON, Calif., May 5 (UPI) -- U.S. supermajor Chevron Corp. announced that it added an estimated 5 trillion cubic feet of shale gas to its portfolio through the acquisition of new acreage.

Shale deposits are considered an emerging energy resource for the United States. T. Boone Pickens, a Texas oil magnate, said abundant gas reserves in the United States made the country the "Saudi Arabia of natural gas."

Chevron announced it acquired about 228,000 acres in the Marcellus shale gas play in southern Pennsylvania from Chief Oil and Gas LLC and Tug Hill, Inc. Financial terms weren't disclosed.

It has acquired roughly 5 million acres of shale reserves in the United States, Canada, Poland and Romania during the last year.

"This expansion of our shale gas portfolio gives us additional high-quality resources with strong growth potential, as well as proximity to and synergy with existing operations," Gary Luquette, president of Chevron North America Exploration and Production Co., said in a statement.

Chevron said the reserves in the Marcellus shale play hold an estimated 5 trillion cubic feet of natural gas.

Shale gas deposits in the Appalachian Basin yielded 100 million cubic feet of natural gas in 2009. Environmental groups say the process that releases gas from shale deposits causes irreparable damage to the environment, however.

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