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Thursday, April 18, 2013

Another Outlet Jumps on Bandwagon, Declares "Utica Shale Disaster"

From Energy & Capital:
The Utica Shale — Eastern Ohio’s promising shale formation that just two years ago promised $500 billion in oil riches — now has companies running for the hills as its promise fizzles out.
It’s a losing battle for many of the U.S. drillers who already have rigs in place. In fact, the region’s biggest stakeholders have decided to sell acreage.
The Utica is a vast, dense shale rock formation that stretches from Ohio to New York.
At the onset, the Utica was thriving; companies were buying up acreage like hot cakes and operations were moving along without a hitch. As an example of how promising things were expected to be, one Utica deal at the end of last year was valued at more than $50 million. That figure is comparable to seven deals in North Dakota’s Bakken Shale and six in the Eagle Ford of Texas.
But the numbers don’t compute. Experts say that by 2017 the Utica will only be producing an average of 200,000 barrels per day. The Eagle Ford, by comparison, will be producing nearly six times that at 1.15 million barrels a day, Bloomberg reports.
Read the whole report here.

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