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View Diary: Former Chesapeake Energy CEO Aubrey McClendon Buys Fracking Wells In Ohio's Utica Shale (8 comments)

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  •  1015 permits... and growing (2+ / 0-)
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    cotterperson, Ishmaelbychoice

    2015 is when "Utica really takes off" and meeting capacity. It's a mover.

    The Utica Shale is in eastern/and heading south Ohio counties (Carroll, Harrison, Belmont, Noble, Guernsey, Monroe and Washington...) and Harrison County is where McClendon is focused.

    That is only 100 miles from Columbus, 60 miles to Pittsburgh, 80 to Youngstown. And, Youngstown OH has already experienced 10 earthquakes (never experienced before now) in 9 short months in 2011. And the OH Dept of Natural Resources was so "concerned" after that 10th earthquake that it shut down the fracking disposal well in Youngstown.

    Ohio has cleared the 1,000 mark for drilling permits in the Utica shale play, driven by activity from oil and natural gas companies that has exceeded projections by the Ohio Department of Natural Resources.

    --snip--

    He also told me the best is yet to come as more oil and gas pipelines and processing plants are built in eastern Ohio, paving the way for drillers to move gas and oil from well heads to the marketplace.

    ODNR has projected 750 drilling permits will be issued next year and 1,000 in 2015.

    “That’s when you’ll really see the Utica take off,” Bennett said of 2015. “Pipelines and processing plants will be up to capacity by then.”

    Benesch’s report on third-quarter shale activity also says the unveiling of well results is redefining the landscape for several companies, including Chesapeake. It says Chesapeake seems “slightly out of target” with some of its holdings in Ohio while Gulfport Energy Corp. (NASDAQ:GPOR), with 145,000 leased acres in the Utica, is well-positioned.

    There also is the wildcard of former Chesapeake top gun Aubrey McClendon. His new company, American Energy Partners LP, is acquiring acreage in the Utica after raising approximately $1.7 billion in private equity commitments to finance operations in eastern Ohio.

    And Texans are selling their Texas holdings and moving into Ohio in the Utica Shale area because Utica has TWICE the oil/gas that their Texas wells have.

    They're building a pipeline from the Ohio River up to the Utica shale area for water. Fracking requires lots of water (wasting scarce fresh water resource). Do they also plan to pipe the disposal crap back into the Ohio like the CAFO hog farms do?


    One does not become enlightened by imagining figures of light, but by making the darkness conscious. --Carl Jung

    by bronte17 on Fri Dec 13, 2013 at 10:26:05 AM PST

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