Ohio Clinton Sandstone Horiz Wells on the Increase – Utica-Lite?
There’s once again renewed interest in Ohio’s Clinton sandstone. This time the interest is in drilling horizontal wells–“baby” wells compared to a Utica well. Over a dozen horizontal wells either have been or are now being drilled in the Clinton. One company, traditionally a conventional (vertical-only) driller, says drilling a horizontal well in the Clinton is 3 times more expensive than a vertical-only well, but it’s 7-8 times more productive. Another driller puts the cost at 10 times more than conventional drilling but 20 times more productive. Any way you slice it, it seems that small and large firms alike are taking a close look at the Clinton, drilling for “leftover natural gas and oil.” Here’s details of who’s doing the drilling and where…
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Investment firm Topeka Capital Markets recently issued a report (for their clients) of the “most likely” companies in the oil and gas space that will be takeover targets, presumably this year. Unfortunately we don’t have a copy of the report, but we do have a list of the names they say are likely targets. The list has seven companies on it–three of which are focused on the Marcellus/Utica. Two of them are some of the biggest in the Marcellus/Utica. One of them has our eyes popping out, frankly with disbelief…
Here’s one weird and twisted bedtime story: Once upon a time there was a filthy Big Tobacco company. Big Tobacco hooked up with a wealthy (and equally filthy) Big Oil company and they had a baby. And the baby was…….solar panels?? Yep. Philip Morris, one of the largest cigarette manufacturers in the world has contracted with Dominion, one of the biggest utility/midstream companies in the Marcellus/Utica region, to install 8,000 solar panels at the Philip Morris facility in Chesterfield County, VA so they can make more cigs. It will be the largest solar installation to date in the state of Virginia. The only problem here is that the “bad guys” (Big Tobacco and Big Oil) are the heroes by installing solar instead of using natural gas. This is a real dilemma for the anti-drilling/anti-pipeline gang in the Old Dominion State. It may cause a brain hemorrhage…