OOGA President Provides Latest Update on Utica Shale
From The Canton Repository:
The Ohio Oil & Gas Association held its annual summer meeting at Glenmoor Country Club earlier this week, and The Canton Repository caught up with OOGA President Steve Downey.
Downey, EnerVest Operating’s vice president of business development, is a 32-year veteran of the industry. He is in the first of two years as OOGA president. Between golf sessions Tuesday, he kept an eye on the upcoming vote on the state budget bill that included OOGA supported provisions concerning drilling units and eliminating the $60 minimum severance tax and the $100 per well transfer fee. He also shared his thoughts on the following topics:
The current state of the Utica Shale play and its future:
“The Utica has done really well since its inception... We’re producing probably about 9 billion cubic feet of natural gas a day in Ohio now, somewhere in that neighborhood. It’s ramped up greatly... As prices have moved for (natural gas liquids) and dry gas, the areas have fluctuated just a little bit. Where’s the real drilling? It’s kind of jumped back and forth between the wet gas and the dry gas just depending on economics...
“Some producers have the ability to go back and forth. Encino Energy – used to be Chesapeake Energy’s assets – they have both wet and dry gas, so they can shift as they see fit, to some degree. You have other companies that are strictly dry gas. ...I think the acreage positions are pretty well set now.”Read on by clicking right here.