CNBC Reports on Utica Shale

By -
From CNBC:
Chesapeake CEO Aubrey McClendon is no stranger to controversy.

And his next big bet is largely controversial - he's convinced the future of his company as well as the nation lies with the nat gas in the Utica Shale.

If he’s right, it could change – well, everything.

The Utica shale is a rock formation which stretches deep underground, across parts of New York, Pennsylvania, Ohio, and West Virginia. According to some estimates the Utica Shale may contain 38 trillion cubic feet of undiscovered gas.

Chesapeake Energy [CHK  21.05    -0.53  (-2.46%)   ] is the largest stakeholder in the Utica shale, with the company and its CEO Aubrey McClendon betting the proverbial farm that nat gas [NGCV1  3.628    0.041  (+1.14%)   ] is about to become the nation’s preferred source of energy. 
Not only is nat gas abundant in the United States but it’s also the cleanest burning of all the fossil fuels. 
As a result, McClendon and may others believe that nat gas has the potential to be transformative because it can lower the price of energy for all Americans as well as break America’s dependence on foreign oil.
Read the rest of the article and watch video of Jim Cramer's interview with Aubrey McClendon by clicking here.

Meanwhile, the Tribune Chronicle also had a story about CNBC's coverage:
A CNBC reporter in town to report on how the area is part of a resurgence in manufacturing because of the Utica Shale says he sees a lot more optimism than on his last visit here.
In fact, Phil LeBeau said he can't remember what he was in town for the last time he was here as a reporter, but he said the mindset is vastly different now than what it was then.
''There is a feeling building, there is momentum building for the economy for a long time,'' LeBeau said.
LeBeau and his crew have been in the city for a couple days. Thursday, they spent the morning at a house being demolished on Republic Street on the East Side then moved to De-Cal Inc. Industrial Contractors on Ohio Works Drive.
LeBeau said one of the things he wanted to do during his visit was demonstrate how drilling and hydraulic fracturing, or fracking, related businesses are growing and fueling the economy. Michael Montgomery, regional manager of De-Cal, said that his company had 20 employees at the beginning of 2011 and has 132 now.
Read the rest of that article here.

Connect with us on Facebook and Twitter!

Popular posts from this blog

Fracktivist in Dimock Releases Carefully Edited Video, Refuses to Release the Rest

By -
Image
From Energy in Depth: There is something very strange going on along Carter Road, in Dimock, Pennsylvania, and I’m not speaking of natural gas, methane migration, contamination, litigation or even the extensive water testing there by the EPA and others.  No, I’m talking about a new “Watergate” conspiracy, complete with 18 minutes of missing tape (well, video, actually). It seems the ever-present Green Party member and  naturist   Vera Scroggins  (a/k/a  Vera Duerga ) has posted a video of Craig Sautner meeting with the EPA.  Mysteriously, the video is but 14 seconds in length, cutting off conversation in what is obviously mid-stream.  It raises a question Craig Sautner, like  Ronald Reagan in Kings Row , might have asked, “Where’s the rest of me?’  Carter Road, isn’t Kings Row, of course, (at least not until you arrive at  the mansion Scott Ely, one of the Dimock litigants, is building with his royalty money ), but there appears to be a whole lot of film editing going on there to fi
Read more

The Second Largest Oil and Gas Merger - Cabot and Cimarex

By -
Image
       Due to investor pressure, the U.S shale drillers are being pushed to improve financial and operational performance after a few years of poor returns. Even though the industry has improved its numbers, when compared to last year, investors still want more to be done for them to earn more money.      That's why two mid-tier shale drillers, Cabot and Climarex, have decided to merge in order to eliminate $100 million in annual costs, which means more money for the investors. This all-stock transaction is valued at about $7.4 billion, which is relatively high for the oil and gas sector.      The new entity will be renamed and the headquarters located in Houston, Texas. Cabot shareholders will own 49.5 percent of the new entity, and Climarex the rest.       The Cimarex-Cabot merger will address the investor's demand for a higher amount of returning cash. The initial plan is to pay a 50-cent-per-share special dividend on closing the deal while offering a quarterly variable div
Read more

Is a Strong Oil Demand Expected This Year?

By -
Image
  According to the world's largest oil traders, global oil demand is set for a rebound. Between now and the end of 2022, global consumption is expected to increase by up to 8 million barrels each day. Vitol Group, the world's largest oil trader, supports this statement.  In an interview with Bloomberg, Vitol's chief executive Russell Hardy said, "We'll need all eight cylinders to get through 2022". This, of course, is due to the lower than average demand for oil at the moment. Reopening economies and Asian markets will create a strong demand rebound by the end of this year and in 2022.  Although the demand for jet fuel will slowly increase, it will still be below average at the end of the year. Nevertheless, a surge in petrochemicals will offset the expected delay in jet fuel demand. Last year, the oil surplus reached a record of 1 billion barrels. This excess is already more than halfway drained, and experts believe it will be depleted by the third quarter th
Read more