Chesapeake Energy to scale back drilling in Utica Shale
Thursday, February 26, 2015
Chesapeake Energy has more producing Utica Shale wells in Ohio than any other driller, but the company is cutting back due to low natural gas and oil prices.
The Repository reports that Chesapeake will spend 10 percent of its $4.5 billion drilling budget on Utica Shale wells this year. The company plans to complete three to five oil wells in 2015.
Chesapeake’s absolute production will drop to about 650,000 barrels per day from 2014’s average of 706,000 barrels per day. However, when asset sales are considered, production will grow three to five percent.
Via: The Repository > Chesapeake to reduce drilling in Utica Shale
Related: Chesapeake Energy Corporation closes southern Marcellus and Utica Shale sale Dec. 22, 2014
Leave a Comment
Marcellus & Utica Shale Well Map
Additional Shale Maps
Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.