Alcoa Wins Pennsylvania General Energy Contract to Supply Aluminum Alloy Drill Pipe for Marcellus Shale Field Exploration

August 2, 2012

NEW YORK--Alcoa (NYSE: AA) announced today that Alcoa Oil & Gas was awarded a contract from Pennsylvania General Energy (PGE) to produce 3,500 feet of aluminum alloy drill pipe for gas drilling in the Marcellus Shale formation of Central Pennsylvania.

Alcoa’s 4.5” drill pipe will extend the reach of the carrier-mounted drilling rig used on natural gas wells in the Marcellus Shale formation to a total depth of approximately 7,500 feet. This is 1,000 feet deeper than conventional steel drill pipe can penetrate without using larger, more costly rigs.

Alcoa’s innovative drill pipe is a tapered, high-strength, aluminum alloy tube coupled with proprietary thermal connection technology that allows steel tool joints to attach to the aluminum pipe’s body. This feature optimizes the pipe’s strength-to-weight ratio and gives it the capability to be used with steel pipe. Alcoa’s pipe design and unique aluminum construction make it up to 50 percent lighter than steel pipe, yet it maintains the durability and strength of steel. The Alcoa pipe significantly increases a rig’s operating efficiency while allowing for deeper drilling.

“The high strength-to-weight ratio of Alcoa pipe will allow PGE to drill deeper with less energy-intensive rigs and to maintain a smaller drilling footprint, which is a win for PGE, our land owners, and the environment,” said Justin L. Hansen, Drilling Engineer, PGE.

“We are pleased that Pennsylvania General Energy recognizes the value Alcoa drill pipe can bring to challenging drilling projects like those in the Marcellus Shale formation,” said Dr. Jamal Righi, General Manager, Alcoa Oil & Gas. “For deep drilling, it is possible to move twice the amount of Alcoa pipe than steel pipe, with reduced torque and drag, making Alcoa pipe the preferred drill pipe for efficient deep-drilling exploration.”

Pennsylvania General Energy has 30-plus years of oil and natural gas development experience in the Appalachian Basin and was one of the first companies to explore the Marcellus formation and successfully drill a well in 2005.

About Alcoa Oil & Gas

Alcoa Oil and Gas offers customized solutions specific to the oil and gas and neighboring industries, including strong, light weight Aluminum Alloy Drill Pipe, subsea riser systems, engineered forgings and extrusions and fabricated products. Alcoa’s aluminum alloy technology can help enable design solutions which offer up to 50% weight savings for the oil and gas market, including the construction of high-strength, low-weight drilling risers, already proven in demanding deep water applications. For more information, visit or contact Jay Grissom at

About Alcoa

Alcoa is the world’s leading producer of primary aluminum, fabricated aluminum and alumina. In addition to inventing the modern-day aluminum industry, Alcoa innovation has been behind major milestones in the aerospace, automotive, packaging, building and construction, commercial transportation, consumer electronics and industrial markets over the past 120 years. Among the solutions Alcoa markets are flat-rolled products, hard alloy extrusions, and forgings, as well as Alcoa® wheels, fastening systems, precision and investment castings, and building systems in addition to its expertise in other light metals such as titanium and nickel-based super alloys. Sustainability is an integral part of Alcoa’s operating practices and the product design and engineering it provides to customers. Alcoa has been a member of the Dow Jones Sustainability Index for ten consecutive years and approximately 75 percent of all of the aluminum ever produced since 1888 is still in active use today. Alcoa employs approximately 61,000 people in 31 countries across the world. More information can be found at

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