The Daily Digger

  As already discussed in  previous posts , the U.S. shale industry is finally gaining its strength back after months of decline. To much surprise, this resurgence is largely due to privately owned shale drillers and not the other giant corporations. This has worried OPEC as it will affect their overall market shares in the oil business.  How are these privately owned corporations usurping the U.S. oil market share from OPEC? That is what we will discuss today, but first, let's look at what OPEC is.  OPEC - Organization of the Petroleum Exporting Countries The OPEC was established on 14 September 1960 and has continued to play a significant role in influencing the global oil prices. Currently, 13 countries are members of the OPEC, all of which have substantial oil reserves. Their  mission statement  is: " to coordinate and unify the petroleum policies of its member countries and ensure the stabilization of oil markets, to secure an efficient, economical and regular supply of p

In the United States, there are seven main Shales (Bakken, Niobrara, Permian, Eagle Ford, Haynesville, Marcellus, and Utica). The Permian and Eagle Ford Shale, located in Texas, are the highest producing Shales in the United States. Among all of them, the Utica Shale seems to be the one with less popularity despite bringing many investments and job opportunities for Ohio. In today's post, we will discuss why the Utica Shale is under-appreciated and how it has benefited Ohio. Marcellus Shale Perhaps one reason why the Utica Shale is under-appreciated is that it's located right next to the Marcellus Shale. The latest report estimates that the Marcellus Shale yields about 14.4 billion cubic feet of natural gas per day. In 2015, it was the source for over 36% of the shale gas produced in the United States and 18% of the total dry gas production of the United States. Of course, the Utica Shale is small in comparison to the Marcellus Shale. Despite that, the Utica Shale still holds s

  Without a doubt, you've come across hundreds of articles both in favor and against fracking. If you've been a long-time reader of The Daily Digger, you've also been able to see many different news articles related to the pros and cons of fracking. While some (both in favor and against) base their reasons on scientific facts, others may take the liberty to add their facts that aren't scientifically proven.  Today we will try to explain if fracking can harm your health. We won't take a side in this matter; instead, state the scientific facts. All the information used in this article is taken from the  NIEHS  (National Institute of Environmental Health Sciences).  The Process of Hydraulic Fracturing We won't get into too much detail, as a lot is involved, but basically, it's a process used to extract natural gas and oil from deep rock deposits known as shale. Water, sand, and a mix of chemicals are forced into horizontally drilled wells, causing the shale to

  For the past few days, many states have been severely affected by an Arctic cold front. Out of all of the states, Texas seems like the one being hit the hardest. Some areas of Texas have  gone as low  as 0F, something unheard of for the past 30 years. U.S. oil production has dropped by more than 2 million barrels a day (the equivalent of about 18% of overall U.S. crude production) as freezing weather brings to halt key producing states that have never had to deal with freezing Arctic blasts. The Permian Basin, the most profitable U.S. oil production region, is the one affected the most by the Arctic weather since its located in west Texas and southeast New Mexico. Production cuts were also significant in the Eagle Ford, located in southern Texas, and the Anadarko basin in Oklahoma. Since the start of the Arctic cold snap, oil prices have fallen slightly because most refineries have closed due to the cold, reducing the amount of crude needed right now. One company benefiting from this

  The U.S. oil market seems to be getting back on its feet. With oil price getting back to its  former price , the oil demand is steadily increasing as well. For months now, the Asian market has been a helping hand in keeping the global oil market alive, especially for the U.S. market. With the stabilization of global oil demand and production, domestic refiners are processing the most crude oil since the economy's massive halt in March. The increase in demand is due to the vaccine-driven boost, which is planned for this summer. Without a doubt, this will help the U.S. oil market recover from the hit it took during the pandemic. West Texas Intermediate crude is one of the domestic refiners that has seen a significant increase in demand. The price has picked up at least 50 cents a barrel compared to a few weeks ago, today being close to  $60 a barrel . In comparison, Brent crude in London has gone up to $63 a barrel.  With the current extreme cold weather affecting Texas, propane an

  Chesapeake Energy Corp was once the  second-largest natural gas company  in the United States. These days, however, it is a shadow of its former self. On Tuesday, the company exited Chapter 11 protection and is making some significant changes.  This article will consider some modifications to Chesapeake's business model and give you an idea of what to expect from the company in the coming months.  Reduced Workforce As part of the restructuring plan, the company is reducing its staffing levels to adapt to the challenging market. Recently, Chesapeake announced their plans to cut its workforce by 15 percent. And just last week, they made another round of layoffs in Oklahoma City, where about 220 people were affected. Free Cash Flow Chesapeake is pledging to produce free cash flow, which is increasingly common in shale. This financial decision is not free from criticism from shareholders, who argue that this prioritizes production growth over investment returns.  Robert Lawler, who