An article in Cleveland.com reports that there were 651 new oil and gas wells drilled in Ohio during 2010 – the smallest number of wells drilled since 1887. Low natural gas prices are blamed.
More at Cleveland.com.
Ohio Gas
Marcellus Shale Development Will Require Thousands of Miles of Pipelines
About three billion cubic feet of natural gas is being produced every day from the Marcellus Shale, an amount that is expected to grow significantly as more wells are drilled. Moving that gas to market will require thousands of miles of new pipelines,…
More at Business Week.
Shale Drilling Boom in Ohio?
A recent announcement of highly successful wells drilled into the Utica Shale of eastern Ohio has many communities excited about the potential opportunities and problems associated with a shale drilling boom.
More at Morgan County Herald.
Aubrey McClendon on the Utica Shale
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.
Major Natural Gas Liquids Find in the Utica Shale
Chesapeake Energy announced a major new natural gas liquids play in the Utica Shale of eastern Ohio based upon results from six horizontal and nine vertical wells. The company holds 1.25 million net leasehold acres in the Utica Shale and believes that they could be worth $15 – $20 billion in increased value to the company.
More at Chesapeake Energy.
Contentious Natural Gas Lease Renewals
In 2008 and earlier lots of landowners above the Marcellus Shale signed natural gas lease agreements for the historical “going rate” of a few dollars per acre. Then as the potential of the rock unit became known the signing bonuses paid on leases skyrocketed to thousands of dollars per acre. Now these leases are expiring and legal battles between landowners and gas companies are beginning.
More at Business Week.
Major Oil Companies are Buying Up the Marcellus
Major oil companies are rapidly buying the small players in the Marcellus Shale gas play. Exxon Mobil Corporation just spent $1.7 billion to purchase Phillips Resources, Inc. and TWP Inc. This follows Chevron’s recent acquisition of Atlas Energy and other transactions. More on the FuelFix.com blog.
Ohio is Ready for Marcellus and Utica Shale Development
“Everything that made Ohio the ideal location choice for suppliers to the automotive industry is in place for Tier I and II suppliers to efficiently and affordably supply the Marcellus and Utica Shale gas industry.” Quoted from the Ohio Business Development Coalition press release.
Who Owns the Mineral Rights?
An article in the Columbus Dispatch reports that the State of Ohio considers leasing state park lands for natural gas production from the Utica Shale. However, they only own the mineral rights to about 1/3 of the land and the mineral ownership for many more parcels is unknown.
Are Ohio Severance Taxes on Oil and Natural Gas Too Low?
An article in the Lancaster Eagle Gazette explains how the State of Ohio is taking in very little from oil and gas drilling being done in the state and compares their income with that of other oil and gas producing states.
Drilling for Shale Gas in Ohio State Parks?
The Marcellus Shale, Utica Shale and Upper Devonian Shales are beneath many of Ohio’s State Parks. Some members of Ohio State Government would like to obtain the lease and royalty monies from those lands while environmentalists oppose that drilling. More in the Columbus Dispatch.
Chesapeake Spends $1B Acquiring Utica Shale Leases in Ohio
A article in the Dayton Daily News reports that oil and gas companies are rushing to lease land above the Utica Shale in eastern and central Ohio. They report that Chesapeak Energy has spent $1 billion on Utica Shale leases in Ohio.
17,000 Marcellus Shale Gas Wells?
Statoil ASA and Chesapeake Energy project that they could drill as many as 17,000 natural gas wells into the Marcellus Shale over the next twenty years. More in the West Virginia Gazette.
Radiation in Marcellus Shale Wastewater?
A New York Times article explores concerns about radiation levels in wastewater from Marcellus Shale drilling sites and how that water is being processed before discharge into the environment.
How Much Gas in the Utica Shale?
The Utica Shale has a larger geographic extent than both the Marcellus Shale of the Appalachian Basin and the Barnett Shale of Texas. It is also has a much larger total volume. Will its gas producing potential exceed that of the Marcellus and Barnett. An article on the Seeking Alpha blog explores this question.
“Triple Play” in the Appalachian Basin
John Pinkerton, CEO of Range Resources, explains the “Triple Play” in natural gas that can be had in parts of Pennsylvania, New York, Ohio and West Virginia. Shale gas can be produced from the Upper Devonian Shale, the Marcellus Shale, and the Utica Shale – all from a single drill pad. More in the Star-Telegram Blogs.
Natural Gas in the Upper Devonian Shales
From the PAGasDirectory Blog…. In an assessment of its lease holdings, Range Resources has included 10 to 14 trillion cubic feet of Upper Devonian natural gas as an unproven resource. The Upper Devonian is above the Marcellus Shale and includes multiple organic shales such as the Cleveland, Huron-Dunkirk, Rhinestreet, Middlesex and Geneseo-Burket Shales. See an article on SearchAndDiscovery.net for a generalized stratigraphic sequence.
Local Government Groups Want to Cash in on Gas Shales
An article in the Business Journal Daily explains why many state, county and community governments are interested in offering their land for natural gas drilling. This article focuses on county governments in northeastern Ohio who consider leasing their Marcellus Shale and Utica Shale acreages.
Consol Will Cut Back on Shale Gas Drilling
In 2010 Consol Energy was drilling wells into the Utica Shale of eastern Ohio and into the high natural gas liquids portion of the Marcellus Shale. An article on Platts.com reports that Consol plans cut back on drilling in 2011 because of low natural gas prices.
Utica Shale: The Natural Gas Giant Beneath the Marcellus
A rock layer below the Marcellus Shale could prove to be another incredible source of natural gas. The Utica Shale is thicker, more geographically extensive and has already proven its ability to support commercial production.
