New York state is missing out on one of the strongest and longest-running plays in the natural gas field, according to a recent report.
The Marcellus Shale formation stretches roughly from south of the Finger Lakes into western Pennsylvania, Ohio and West Virginia — and its “low-cost, highly productive wells” will remain economically viable even if gas prices weaken, according to an 11-page report by Moody’s Investors Service.
The benefit to exploration and production companies extracting natural gas through hydraulic fracturing, or fracking, in the 104,000-square-mile region “isn’t likely to change anytime soon” and could grow larger than in other region in the US, Moody’s said.
The Marcellus’ proximity to large cities is one of the advantages cited in the report.
Fracking is allowed in Pennsylvania, Ohio and West Virginia, but is illegal in New York.
To date, Gov. Andrew Cuomo’s actions have delayed green-lighting fracking, which has been linked to health risks. In February 2013, Cuomo, after the state Department of Environmental Conservation had studied the issue for two years, asked the state Health Department to investigate. It has yet to issue a report.