Attitudes Towards Utica Shale Cooling a Little in Wake of Production Report

By -
From The Columbus Dispatch:
The warm-up is almost over in Ohio’s Utica shale country. Now, it is time to see whether the flurry of activity, the billions of dollars of investment and the hyperbole about its potential will produce substantial results.
Oil and gas now are being pulled from the layer of rock known as the Utica, located as deep as 9,200 feet under the eastern and central parts of the state. Figures released last week show that energy companies nearly doubled their production in the Utica last year. Based on those results, industry experts now have a better sense of what the Utica is and what it isn’t.
Here is what we know:
• While the Utica is beneath eastern and central parts of the state, its sweet spot is a much smaller area that includes Carroll, Harrison, Columbiana and Noble counties.
• Despite early hopes that the Utica would be rich with oil, its most abundant resources are natural gas and natural-gas liquids. Much of the oil is locked away in areas that are difficult to access with current technology.
• Central Ohio is unlikely to see an oil and gas boom. Devon Energy is already giving up on the Utica and is selling its assets there, having drilled the closest to the area with a well in Knox County and coming up virtually empty.
Nobody contributed to the high expectations as much as Chesapeake Energy and its now-former CEO, Aubrey McClendon. Two years ago, he told an Ohio audience that shale energy would be the biggest thing in the state “since maybe the plow” and estimated $500 billion in income.
His company remains the largest leaseholder and producer in the state, but his successors and other energy executives have toned down the talk.
“Early on, there was this hype that (the Utica) was going to be the next east Texas or Saudi Arabia,” said Randy Albert, chief operating officer of gas operations for Consol Energy of Pennsylvania, which is drilling in eight Ohio counties. “It’s not going to be that.”
The rest of the article can be read right 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