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Wednesday, May 7, 2014

BP Says New Regulations and Taxes Didn't Play Into Decision to Leave Utica Shale

From Crain's Cleveland Business:
It's not you, or your governor. It's the rocks.
That's BP America's message to Ohioans who might wonder whether it really was the company's drilling results, or the fear of higher taxes and more regulations, that led the company to abandon its position in the Utica shale.
The company announced Tuesday, April 29, that it was abandoning the play. BP's Ohio spokesman Curtis Thomas said the company would begin marketing the mineral rights to its Ohio acreage immediately, as the company reported it would take a writedown of $521 million as a result of its decision.
Some, including the Ohio Oil and Gas Association — a strong opponent of some current proposals to increase oil and gas severance taxes in Ohio — speculated that BP's decision might have been driven in part by the threat of increased taxes and regulations here.
That was not the case, Thomas told Crain's today, April 30.
You can click here to read the rest of the article.

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