On July 28th Chesapeake Energy announced spectacular drilling results for multiple wells in the Utica Shale of eastern Ohio. In this video, Chesapeake CEO Aubrey NcClendon tells Jim Cramer about the significance and potential value of their discovery. See the video and more at CNBC.com.
Dominion Transmission plans to build a processing plant at Natrium, West Virginia to separate natural gas liquids from Marcellus Shale gas. More in the Charleston Daily Mail.
An article on the St.LouisToday website explains how major oil companies are buying into the natural gas business and what might be motivating these investments.
Range Resources plans to sell off their Barnett Shale properties and use the money to buy into areas where natural gas liquids can be produced. More at the Star-Telegram.com website.
Lots of shale gas producers are moving their focus to parts of the plays where natural gas liquids can be produced – because of their extra value. The problem now is…. How to get them to market? or How to develop a market? More at Platts.com.
A well with some natural gas liquids production can be worth a lot more than a well that simply produces gas. An article in the WinnipegFreePress website explores natural gas liquids increasing the value of Eagle Ford properties.
Shale wells that produce natural gas liquids or natural gas and light oil can be much more profitable than a well that produces only natural gas. An article on the Seeking Alpha website explores the “hybrid” production model.
“Since March 2009, the premium for natural gas liquids over the price of natural gas has grown. NGLs, which include propane, ethane, butane, pentane and natural gasoline, are produced in conjunction with natural gas, and the quantity of liquids varies from basin to basin and often from well to well. To take advantage of the NGL price premiums, producers are now seeking out liquid-rich shale plays—such as the Eagle Ford and the Marcellus.” Quoted from the EIA Natural Gas Update.
An article on the Gerson Lehrman Group website by Michael Lynch suggests that some companies are responding to low natural gas prices by drilling in areas where a high liquids content will provide additional income.
Natural gas liquids include: propane, butane, pentane, hexane and heptane.
