World oil prices affect Ohio drilling
Wednesday, February 25, 2015
As crude oil prices fluctuate, Ohio’s shale drilling is impacted, according to WKSU News.
Shale drilling took off in Ohio during the last decade, and while some believe that the state joined the oil and gas market at the wrong time, oil and gas drilling is cyclical, so prices will eventually recover.
A lot of the hydrocarbons are extracted from the Utica and Marcellus Shale. When natural gas prices decline, lighter natural gas liquids like ethane also drop. When oil prices decline, so do heavy natural gas liquids like butanes.
While companies cut back on production this year due to lower crude and natural gas prices, there will likely be a slowdown in midstream construction, such as pipelines and cracker plants.
Via: WKSU News > What are world oil prices doing to Ohio’s oil and gas ambitions?
Leave a Comment
Marcellus & Utica Shale Well Map
Additional Shale Maps
Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.