WV Gov Earl Ray Tomblin Praises Marcellus Shale During Speech
At Pennsylvania Gov. Tom Wolf’s inauguration yesterday, Wolf didn’t even mention the word “Marcellus” and said nothing of shale drilling in the state beyond a vague statement about the state being “blessed with an abundance of natural resources” which includes “gas.” Compare Wolf’s total lack of acknowledgement of the Marcellus and the key role it plays in Pennsylvania with the West Virginia Gov. Earl Ray Tomblin’s State of the State speech last week, a speech in which he positively gushes about the Marcellus, by name. Tomblin even treats two representatives from Southwestern Energy present in the audience as exalted guests, asking them to stand for applause (Southwestern has just invested $5 billion in WV). The kicker: both governors are Democrats. In part, here’s what Tomblin said last week in his annual speech to the state:
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Antero Resources said on Monday it will lay off more than 250 contract land brokers operating in West Virginia, Ohio and Pennsylvania. The layoffs will not affect any Antero employees–only contract workers (landmen and others) who work to get leases signed, sealed and delivered for future drilling. Antero blames the low price of oil, which causes the price they get for their Marcellus/Utica natural gas liquids to be low, which means they’ll stick to drilling on the half million plus acres they already have under lease…
Time to follow the bouncing ball–this is a tad complicated, but we’ll do our best to explain it. In 2008, Chesapeake Energy (under then-CEO Aubrey McClendon) took on a “silent” investing partner for 600,000 net acres in the Marcellus of West Virginia and southwest Pennsylvania. The non-operating partner for the acreage was Norwegian company Statoil, with a 32.5% interest in the acreage. Statoil put up buckets of money and Chessy did the drilling. Fast forward to October of this year. Chesapeake cut a deal to sell most of that acreage–some 413,000 acres with 435 drilled wells (see