Utica Shale

Anadarko | Devon Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Ohio’s Less Than Stellar Results from Oil Drilling
October 5, 2012October 5, 2012

The story line for development of the Marcellus and Utica Shale going back to the beginning of this year was, “Drillers are leaving the dry gas areas and going after wet gas,” meaning natural gas liquids. Why? Because the price for liquids is more favorable. That meant drilling activity was lessening in places like northeast Pennsylvania and (supposedly) moving to southwest PA, northern WV and eastern OH. To some degree that has happened.

However, the price for natural gas liquids has fallen due an abundance created by Marcellus and Utica Shale drilling. So the more recent story has been a move toward drilling for crude oil, especially in Ohio. But drilling for crude in Ohio isn’t working out so well—at least for some drillers.

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Ohio | Statewide OH | Utica Shale

New IHS Report Compares OH Utica Shale to TX Eagle Ford Shale
October 4, 2012October 4, 2012

IHS Cera, a global consulting and information service, recently published a new report on the Utica Shale and its potential. Although MDN has not seen the full report, the press release announcing the report contains a good bit of useful information about the IHS findings. IHS compares the Utica to the highly productive Eagle Ford Shale in Texas, saying there are many parallels, but cautioning it’s still very early in the game.

Here’s the full release with lots of juicy tidbits, including which well has produced the most oil in the Ohio Utica:

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Economic Impact | Industrywide Issues | Jobs | Ohio | Statewide OH | Utica Shale

Ohio: $17.5B in Economic Activity from Drilling 2011-2014
September 27, 2012September 27, 2012

Linda Woggon, executive vice president of the Ohio Chamber of Commerce and executive director of the Ohio Shale Coalition, said at a meeting yesterday that shale drilling in Ohio is on track to pump a total of $17.5 billion into the Ohio economy from 2011 to 2014 and generate 65,000 jobs. It will also bring in an additional $795 million in taxes over the same time period—with no increases on taxpayers.

Here’s a few of the highlights from her talk at a breakfast hosted by the Salem Area Chamber Area of Commerce on Wednesday:

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Energy Companies | Ohio | Statewide OH | Total | Utica Shale

French Company Total Says “Non, Merci” to More Utica Shale
September 24, 2012September 24, 2012

In December 2011, French energy giant Total purchased a 25 percent ownership stake in Chesapeake Energy’s Ohio Utica Shale leases for 10 Ohio counties for $2.3 billion. In May, Total paid Chesapeake another $2 billion for a 90% stake in 9,000 leases in Columbiana County, OH (see this MDN story).

It seemed like Total was going full speed ahead with purchases of shale acreage in the Utica Shale. Not any more.

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Energy Companies | Guernsey County | Ohio | PDC Mountaineer | Utica Shale | Washington County (OH)

PDC Energy will Go-it-Alone with Utica Shale Drilling
September 19, 2012September 19, 2012

PDC announced today they will “go it alone” and develop 45,000 acres of Utica Shale leases they own in southeastern Ohio without a joint venture partner. Apparently the offers they received weren’t good enough, so they’re committing $50 million to drilling efforts in the Utica in their 2013 budget.

Early results for PDC have been promising. They report drilling two wells in Guernsey County, OH. They plan to drill a third Utica well later this year in Washington County. Here’s the press release outlining early results, and their Utica plans for the next 12 months:

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Michigan | Statewide MI | Utica Shale

Is Michigan the Next State to See Widespread Shale Drilling?
September 14, 2012September 14, 2012

Is Michigan the next place where horizontal drilling and fracking of shale will take off? Maybe. The U.S. has a myriad of shale plays across it. It just so happens the Marcellus is the largest (land-wise) and the Utica is right now one of the hottest (with oil and natural gas liquids).

Part of the Utica formation underlies Michigan. But the formation of note in Michigan is the Collingwood Shale layer. The Utica is above it, so it’s often referred to as the Utica-Collingwood. The Collingwood is two miles (or more) below the surface. Encana and others have been testing the Utica-Collingwood in Michigan, but lately, it seems like activity in the state is picking up beyond the “just testing” stage (see the map below). Is this a sign of things to come?

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Antero Resources | Belmont County | Energy Companies | Lease & Royalty Payments | Ohio | Utica Shale

Barnesville, OH Signs Lease with Antero, Receives $6M
September 12, 2012September 12, 2012

The Village of Barnesville, OH (Belmont County) just signed a lease with Antero Resources to allow shale drilling on 1,047 village-owned acres. The village now has an additional $6 million in revenue because of it.

Here’s the details about the deal, including the per-acre price and royalty percentage (some of the highest we’ve seen):

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CNX Resources | CONSOL Energy | Energy Companies | Industrywide Issues | Ohio | Pipelines | Statewide OH | Utica Shale

CONSOL Exec Says Utica Pipelines are Critical Need
September 10, 2012September 10, 2012

Harry Schurr, general manager of Utica operations for CONSOL Energy’s CNX Gas, puts pipelines at the top of his wish list for what he needs in the Utica Shale. Schurr made the following comments a day after the NEXUS Gas Transmission was announced last week:

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Energy Companies | Gulfport Energy | Harrison County | Ohio | Utica Shale

Another Gulfport Utica Well in Harrison County Coming Online
September 5, 2012September 5, 2012

Gulfport yesterday reported initial peak results for its Utica Shale well called Boy Scout 1-33H, located in Deersville (Harrison County, OH). Although the flow rates are not as great as Gulport’s recently reported “alpha dog” well, the Wagner 1-H, also in Harrison County (see this MDN story), the new Boy Scout 1-33H is turning in respectable numbers:

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BP | Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Ohio | Statewide OH | Utica Shale

An Update on Ohio’s Utica Shale – Facts & Figures
September 5, 2012September 5, 2012

An article in Crain’s Cleveland Business yesterday takes a look at the pattern of investment in the Utica Shale play in Ohio. According to the article, the Utica follows the same model found in other areas of the world: First smaller independent oil and gas companies invest doing the “retail” work of going house to house to get leases signed. They may even drill a few wells. But soon after, larger o&g companies, the “majors” descend and buy up many of those investments.

The article shares some interesting facts and figures about the current status of investment and development of the Utica in Ohio, among them:

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DTE Energy | Enbridge | Energy Services | Industrywide Issues | Pipelines | Spectra Energy | Utica Shale

New Utica Shale Pipeline to Midwest Announced
September 4, 2012September 4, 2012

Three companies have formed a joint venture to build a new Utica Shale pipeline from Ohio through Michigan and eventually into Canada, delivering Utica Shale gas to Midwestern markets. The three companies are DTE Energy—a Detroit-based energy company, Enbridge—Canada’s largest natural gas distribution company, and Spectra Energy—one of North America’s largest pipeline companies and a member of the Fortune 500 list. The partners plan an open season to lock in customers for the new pipeline later this year. The pipeline won’t be built and in service until late 2015 at the earliest.

From the joint press release issued this morning:

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Earthquakes | Energy Companies | Industrywide Issues | Questerre Energy | Utica Shale

Canadian Questerre Energy Says Fracking Causes Tiny Earthquakes
August 30, 2012August 30, 2012

It seems that every month or two someone resurrects a very dead issue: fracking causes earthquakes. MDN has covered the issue extensively over time (just do a quick MDN search on the word earthquake). In a nutshell, the only known instance when the process of fracking a shale gas well has caused an earthquake detectable on the surface was in England, and it was a unique situation where the drilling was shallow and near a geologic fault (see this MDN story).

Canadian energy company Questerre Energy Corporation is working to develop Utica Shale acreage in the St. Lawrence Lowlands area of Quebec province. Must be they’re getting push-back from environmentalists and investors because they’ve just issued what they call a “fact sheet” on the topic of fracking and earthquakes. According to Questerre, fracking does cause earthquakes—but they’re teeny tiny and not detectable on the surface.

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Carroll County | Economic Impact | Industrywide Issues | Ohio | Utica Shale

Carroll County – “Epicenter” of Utica Shale Drilling in OH
August 29, 2012August 29, 2012

According to Amy Rutledge, head of the Carroll County, Ohio Chamber of Commerce, Carroll County is at the “epicenter” of Utica Shale drilling for the state. She offers these facts and figures to back up that claim:

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Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH | Utica Shale

Fracking Coming to Wayne National Forest in SE OH
August 28, 2012August 28, 2012

The path is now cleared for hydraulic fracturing and Utica shale gas drilling to begin in Wayne National Forest in southeast Ohio. The U.S. Forest Service, after holding off on a decision about fracking in the forest until a study was completed, has concluded that fracking is safe to do and has approved a plan to move forward with it.

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Ohio | Statewide OH | Utica Shale

OH State Geologist: New Utica Map Coming in September
August 20, 2012August 20, 2012

Ohio’s official state geologist, Larry Wickstrom, chief of the ODNR’s Division of Geological Survey, was fired in May because he updated and released a map showing new boundaries for the Utica Shale and where the best places to drill would be located (see this MDN story). The update caused some of the previous lines to change, and that upset a few people (especially Larry’s political bosses). Mac Swinford has taken his place as interim state geologist. Swinford says a new version of the map will be released in September. Let’s hope he fares better than Wickstrom in navigating the politics of science.

Swinford has given us a heads-up of what the new map will show:

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Chevron | Energy Companies | Harrison County | Ohio | Utica Shale

Chevron’s First Utica Shale Well Coming in September
August 20, 2012August 20, 2012

Chevron is set to begin drilling it’s very first Utica Shale well in September. The Kinsey well will be drilled near Tippecanoe, Ohio:

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