The Story of Utica Oil Part 4: EOG Resources Joins the Party
Writing for Hart Energy’s Oil and Gas Investor magazine, author Nissa Darbonne penned a fabulous overview of the Utica, bringing us the history of oil drilling in Ohio (in the 1800s) all the way up to the present day and Encino Energy’s dominance in oil drilling in the Utica. The article includes details about Encino and other companies, including Infinity Natural Resources and EOG Resources. Yesterday, we brought you the secrets of the fracking recipe in the Utica used by Encino and INR (see The Story of Utica Oil Part 3: The Secret Fracking Recipe). Today, we will tell you about oil and gas giant EOG Resources joining the Utica party.
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EOG Resources, one of the largest oil and gas drillers in the U.S. (with international operations in Trinidad and China), owns nearly a half million acres of leases in the Ohio Utica. EOG calls its position the “Ohio Utica combo play” and now considers it one of the company’s “premium plays.” EOG concentrates on oil drilling in the Utica. As part of the company’s second quarter 2024 update, Jeff Leitzell, EOG’s Chief Operating Officer (COO) said the company added another 10,000 acres of leases to its Utica portfolio during 2Q (now at 445,000 acres). He also said the company is currently focusing on 225,000 acres that are in the “volatile oil window” of the Utica.
Writing for Hart Energy’s Oil and Gas Investor magazine, author Nissa Darbonne penned a fabulous overview of the Utica, bringing us the history of oil drilling in Ohio (in the 1800s) all the way up to the present day and Encino Energy’s dominance in oil drilling in the Utica. The article includes details about Encino and other companies, including Infinity Natural Resources and EOG Resources. Yesterday, we brought you details about the founding and current status of INR (see 
Writing for Hart Energy’s Oil and Gas Investor magazine, author Nissa Darbonne penned a fabulous overview of the Utica, bringing us the history of oil drilling in Ohio (in the 1800s) all the way up to the present day and Encino Energy’s dominance in oil drilling in the Utica. The article includes details about Encino and other companies, including Infinity Natural Resources and EOG Resources. On Friday, we brought you excerpts from the article about Encino Energy (see 
The U.S. national oil and gas rig count lost ground last week it had gained the week before. The national combined Baker Hughes oil and gas rig count now stands at 586 rigs, down three from 589 two weeks ago. The Marcellus/Utica lost one rig last week. Pennsylvania lost a rig and now operates 20 active rigs. Ohio operated 11 active rigs. West Virginia remained the same with five active rigs. The M-U is operating a combined 36 rigs. The M-U’s primary competitor, the Haynesville, was down one rig from two weeks ago and now operates 34 rigs.
We’ve written a number of times about the Ohio Utica Shale and its beginnings with gas legend Aubrey McClendon, who, as CEO of Chesapeake Energy, was one of (if not THE) first to recognize the Utica as an oil play. However, it was a successor company, Encino Energy, that figured out how to coax large quantities of oil out of the Utica shale. Encino is one of the big success stories of drilling for oil in the Ohio Utica Shale. Roughly six years ago, Encino, in partnership with the Canada Pension Plan Investment Board (CPP Investments), closed on buying Chesapeake Energy’s Ohio Utica assets for $2 billion (see 
In the fall of 2021, President Biden signed into law the so-called Infrastructure Bill, some $1.2 trillion in pork barrel spending, passed with the help of turncoat Republicans (see 
Operators and investors are more concerned than ever about the remaining inventory of drillable locations. Who has it? Where is it? Will it be economic? The North American inventory rankings by shale play are always of interest. Enverus Intelligence Research (EIR), a subsidiary of Enverus, recently issued a report that ranks the plays by the number of economic-to-drill locations each play has left. Unfortunately, Marcellus Shale play is on the list of “losers” in this latest report. Why? A huge jump in Bidenflation — rig day rates were up 25% year-over-year in September in the Marcellus, compared to about 15% across the other plays. Also a factor is dropping productivity in the Marcellus (“productivity degradation”), particularly in northeast PA.
An anti-drilling Democrat member of the Ohio House of Representatives (representing a Cleveland suburb) would love nothing more than to ban all shale drilling in his state. He has just introduced a bill requiring drillers to disclose any and all chemicals they use for any purpose when drilling a new shale well under state-owned land. State Rep. Sean Patrick Brennan, representing the 14th Ohio House District, claims House Bill (HB) 562 will “improve public safety and transparency.” Will it? Is that its real purpose?
Mergers and Acquisitions (M&A) have been all the rage over the past year or so. In 2024 alone, Chesapeake Energy announced a $7.4 billion deal to buy Southwestern Energy (see 
The U.S. national oil and gas rig count had been in a pattern of free-falling for over a month. Last week, the national combined Baker Hughes oil and gas rig count finally reversed course and added four rigs — now at 585. The Marcellus/Utica stayed the same last week, for the fifth week in a row, with a combined 36 active rigs. Pennsylvania continued to operate 21 rigs. Ohio remained steady with ten active rigs. And West Virginia kept five active rigs.