Friday, April 19, 2013

Analysts and Midstream Companies Have Higher Opinion of Utica Shale Than Bloomberg and Other Naysayers

Bloomberg made a bit of a stir this week with an article that gave the impression that the oil and gas industry was running away from Ohio and the Utica shale because of disappointing early oil production results.  Yesterday another media outlet perpetuated that notion.  Energy in Depth already responded by saying that those claims were not accurate and that the Utica shale was still a hot spot for drillers.

Now, a new article adds another voice to the side of the argument that says it isn't time to write off the Utica shale.

From Crain's Cleveland Business:
So, is the Utica shale boom over? 
That was the impression some observers said was created by an April 15 Bloomberg news story titled, “Ohio's $500 billion oil dream fades as Utica turns gassy.” 
But those observers say people who think the Utica is a bust are missing the point. Oil was not the Utica's major attraction to begin with — “wet” gas that contains not just methane, but ethane and other valuable liquids has been the major lure for drillers.

Oil, if it was found and successfully extracted, would just be a bonus.

Nonetheless the story drew attention to some developments in Ohio that are open to interpretation. Those developments include the large-scale sale of mineral rights leases by some of the Utica's big producers — among them the biggest producer by far, Oklahoma City-based Chesapeake Energy.
Read the whole article here. 

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