Gas/Oil eastern Ohio boom

• j_crazy

  

  fan_from_texas;1064161 wrote:I was reading http://online.wsj.com/article/SB10001424052970203806504577178651732511974.html?mod=WSJ_business_whatsNews
  
  
  
  Much of the impact will probably depend on what other players in the market do.

  
  Gas drilling is not oil drilling. Might be cutting one but will likely step up another.
• Wooball

  

  From the Times Reporter in Eastern, OH
  http://www.timesreporter.com/topstories/x1251832725/Chesapeake-production-cuts-may-be-good-for-Valley
  

  [URL="http://www.timesreporter.com/topstories/x1251832725/Chesapeake-production-cuts-may-be-good-for-Valley"]Chesapeake Energy’s decision to cut its production of natural gas and shift its resources toward areas rich in oil and natural-gas liquids, such as propane could lead to an expanded investment in Ohio's Utica shale.
  Pete Kenworthy, manager of media relations for Chesapeake Energy’s Canton office, said Monday the announcement is consistent with Chesapeake’s plan to increase activity in Ohio in 2012.
  “The Utica Shale is part of our national strategy to increase expenditures in liquids-rich plays,” he said. “Our projection of operating 20 rigs in Ohio by year-end 2012 has not changed.”
  

  [/URL]
• GoPens

  

  QuakerOats;1039638 wrote:The deal is not to "take our natural gas", it is to become a partner in the development of the resource. Chesapeake by itself does not have the ability to completely develop the plays as aggresively as they would like, in fact they are reducing debt levels right now. Bringing in SA allows them to reduce some debt now and at the same time expand on the resource development at a faster pace. SA will get a signficant return on their investment regardless of who the end users of the gas are. There is, at least, over 500 trillion cubic feet of nat gas here --- that is almost an incomprehensible figure. If we play our cards right, this region will benefit in an enormous fashion for decades if not a century or more.

  The U.S. Dept of Energy says the estimated amount of gas in the Marcellus was severely overestimated. Down from 410 trillion cubic feet to 141 trillion cubic feet. At least the news is still good for Ohio's Utica formation. Seems like the energy companies will be concentrating here.
  
  The shale has shrunk.
  
  At least according to the U.S. Energy Department, which released new reserve estimates for the Marcellus Shale on Monday that severely cut the amount of natural gas estimated to be in the rock formation.
  The estimate of 141 trillion cubic feet of gas -- down from the 410 trillion the agency reported last year -- is the latest result of yo-yoing in reserve numbers since drillers started extracting lucrative gas and oil from the formation underneath Appalachia.
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  Read more: http://post-gazette.com/pg/12024/1205614-503.stm#ixzz1kPTopnE4
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• password

  

  The only people being hurt by the reduction in the gas drilling will be the ones in Pennsylvania.
• QuakerOats

  Those are "reserve" estimates, which is different from a "resource" estimate. A resource is generally a much larger amount than a reserve, and generally the reserve ultimately expands to encompass the resource.
  
  The EIA will generally be conservative in its reserve estimates --- heck 60 years ago they thought the Gulf of Mexico had about 50 trillion cubic feet, and ultimately they were off base by factors of 20 or more.
  
  It is better to listen to the actual players in the game who are putting their money where the resource is.
• QuakerOats

  http://business-journal.com/dollars-flow-from-carroll-county-pipeline-p20899-1.htm
  
  
  "This is just starting to hit. There are so many more rigs coming," Hawk says. "In another two years, if this continues, Carroll, Columbiana and Harrison counties will become the three wealthiest counties in Ohio."
  
  Chesapeake announced last month that it would cut back drilling operations for dry gas and reallocate its resources to liquids-rich plays such as the Utica shale in eastern Ohio. Liquid gas -- especially ethane and oil -- enjoy high profit margins and can be converted into products such as ethylene, which is used to manufacture plastics and other composites. Diverting more resources to the Utica shale means that the energy industry's focus on Carroll County is likely to intensify.
  
• Pick6

  

  ^^ Nice
• j_crazy

  

  Did I say that weeks ago? Yes I did.
• arnie palmer

  

  My uncle got a job with this company as one of its drivers. He leaves Gnadenhutten every day and drives to NY or PA to get the used water from drilling and then brings it back to a Youngstown coampany that disgrads it somehow.
• QuakerOats

  Chesapeake is going to have a closed loop water recycling system. :thumbup:
• oberhaus

  

  Oh to own land in Eastern Ohio. I really am jealous.
• QuakerOats

  http://www.bloomberg.com/news/2012-02-01/fracking-boom-could-finally-cap-myth-of-peak-oil-peter-orszag.html
  
  "The year ahead, he says, “could really see the death of the peak-oil hypothesis, something that has been underpinning a lot of the structural bullishness on oil.” (The terminology is thus borderline ironic, since tight oil could make oil markets much less tight.)"
  
  Thank you.