What seemed like a failed exploration in the early 2000s, turned into a global economic and geological treasure that would secure America on the global energy scale. Thanks to the grit, determination, and belief that there was more to explore, the Range Resources team of 2004 successfully completed the first viable Marcellus Shale exploratory well – the Renz #1 – in Mt. Pleasant Township, Washington County, PA.
A soon-to-be unveiled historical landmark, the Renz #1 introduced the world to what is now considered one of the largest natural gas fields in the world. While the original intent was to drill deeper, several pilot runs in the Trenton Black River formation proved unsuccessful. Ultimately, the well was plugged 200 feet below the Marcellus, meaning that the massive natural gas field remained untapped and unexplored for viability.
The Renz exploration, which was the creative idea of Bill Zagorski, coined “The Father of the Marcellus” and now retired Range employee of 40 years who led the discovery of the Marcellus, had been inspired by something he had seen thousands of miles away in the Barnett Shale.
Doug Bowman, Senior Staff Geologist, had worked alongside Bill during the exploration process and remains one of the only Range employees left at the company who was on site for the Renz drilling. After a trip to Texas to visit a friend who was drilling in the Barnett Shale, which at the time was the largest natural gas field in the US, Bill came back inspired and determined.
“What’s that look like to you?” Bill asked Doug as he rolled out logs from the Barnett. “It looks like the Renz,” Doug replied.
“We need to do something with the Marcellus,” Bill said.
Conventional wisdom was not to test the Marcellus, but Bill and the team were looking at this opportunity through a different lens.
Since the Renz at that point had turned out to be unsuccessful, Doug said it was a hard sell to go back and keep drilling. “There was a common belief that the Marcellus wouldn’t be successful, that it was too costly, and that the real gold was beneath it,” he said.
With the Renz turning into what Bill calls a “money pit,” Range was left with few options. Jeff Ventura, former Range CEO and Chief Operating Officer at the time of the Renz, decided to take a chance on the Marcellus, which was a mere one-and-a-half miles from the first Washington County gas discovery with the McGugin Well in the 1880s.
On a crisp October day, Range pumped a Barnett-style frac job into the Marcellus and changed the world’s energy outlook. The well had an initial rate of 300 mcfpd, sufficient enough to be comparable to a Barnett vertical well and providing enough results to continue the exploration of the Marcellus.
“If you could make it vertical, you can make it a play. And if you could turn it horizontally, then you have a world class play,” said Doug.
The team examined the first three horizontal wells and plotted the peak gas rate versus the height landed above the Onondaga. This led to the famous “3-point correlation,” leading Range to shift their landing zone into a higher target within the Marcellus.
With many trials and feeling that an economically viable well was on the horizon, the team finally drilled a successful horizontal well in the Marcellus in 2007, the Gulla 9H marking a massive leap in production and in turn, validating this generational discovery.
The benefits have been broadly observed across the country. In 2004, the U.S. imported 652,015 mmcf of natural gas. Fast forward to 2023, that number was only 15,239 mmcf. In fact, last year, the U.S. exported more than 7,600 bcfe.
Pennsylvania has grown to be the second largest gas-producing State, only behind Texas. If Pennsylvania was an independent country, it would now rank as the 5th largest gas producer behind the U.S, Russia, Iran, and China.
On a more local scale, the Marcellus was a turning point for Washington County, creating a need for Southpointe offices, lodging, restaurants, and entertainment as natural gas brought in many contractors, employees, and headquarters to the region.
While the Marcellus has made positive economic contributions to the global market, it has also provided for our local communities through impact fees, royalties, and philanthropic contributions from Range. Since the successful completion of the Renz well, Range has paid nearly $5 billion in impact fees, royalty and lease payments, and charitable contributions benefiting Pennsylvania communities.
As we celebrate the success of the Marcellus, we also celebrate those employees who have been with Range since the discovery. Without the dedication and contributions of these employees throughout the years, Range would not achieve the successes of today.
“What we have accomplished as a team is one of the most impactful energy revolutions of our lifetime,” said Dennis Degner, CEO and President. “Range changed the global energy landscape by pushing conventional thinking and innovation in ways never before seen in Appalachia. I’m also proud that we have continued with that innovative spirit, finding ways to maximize the Marcellus and be a leader in operational performance and environmental stewardship.”
Throughout the years, Range has continued to evolve into the company it is today, which often exemplifies best-in-practice initiatives and protocol. Range’s Safety Department has evolved safety culture to be at the core of our operations, leading to 0.00 Days Away Restricted or Transferred (DART) and 0.00 Total Recordable Incident Rate (TRI) in 2023. Last year, employees underwent 3,400 hours of safety-related training.
As technology and operations have evolved in fracking the Marcellus, Range has also increasingly found ways to protect our environment. While on track to reach net zero GHG scope 1 and scope 2 emissions by 2025, Range often goes beyond regulatory requirements, offering a more robust environmental awareness. This includes performing Leak Detection and Repair inspections eight times a year versus the required 4 times a year. Our Southwest Pennsylvania assets are also independently certified MiQ “A” grade, the standard in methane emissions certification. Range has also led the way in recycling over 100% of the 11.2 million barrels of flowback and produced water generated from our operations.
As we celebrate 20th anniversary of the Marcellus, it’s important to reflect on how far we have come as a company, community, and region. Without exploration, open-mindedness, and persistence, Range would not be where it is today, supplying the world with clean, affordable energy and supporting our communities and those in need. We celebrate the Marcellus as we reflect on 20 years, and we celebrate all of our employees who have helped us reach this milestone.
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