Top Shale Gas Stories for the Week of 3/31
Friday, April 5, 2013
Here’s this week’s top shale gas stories:
( 1 ) Chesapeake Energy Fined
Chesapeake Energy Corp., the biggest player in Ohio’s Utica shale, found itself in some hot water this week when the U.S. Department of Interior fined the company $765,000 for misreporting oil and gas sales volumes, according to Fox Business.
According to the Department of Interior, Chesapeake repeatedly submitted inaccurate information on royalty-reporting forms on land in Oklahoma.
» Via: Fox Business › State catalogs shale holdings in parks, forests
( 2 ) Ohioans Worried About Possible ‘Frack Tax’
According to Columbus Business First, about two-thirds of Ohio voters think Gov. Kasich’s plan to increase severance taxes on oil and natural-gas producers would hurt Ohio’s economy by discouraging new oil and gas prospects.
The poll was commissioned by the American Petroleum Institute and conducted by Harris Interactive.
» Via: Columbus Business First › Ohioans worried Kasich’s frack tax would stifle drilling, hurting economy
( 3 ) Chesapeake Shares Some Numbers
Chesapeake Energy Corp. said Monday that the company’s wells are producing only a fraction of what they could be. Why? The company is waiting for pipelines, processing plants and other infrastructure due to come to Ohio in 2013.
According to a conference call with analysts, Chief Operating Officer, Steven Dixon, said the company drilled 240 wells in Ohio’s Utica shale, but only 54 of those wells are producing.
» Via: Cleveland.com › Chesapeake Energy shares some Ohio Utica production numbers
( 4 ) $110m Fracking Research Center Coming to Oklahoma
According to Environmental Leader, General Electric says it will build a $110 million research center to study oil and gas extraction technologies.
When announcing the new research center, GE chairman and CEO Jeff Immelt said shale gas has the potential to create jobs and lead to energy independence. GE expects the center will create 125 engineering jobs.
» Via: Environmental Leader.com› Chesapeake Energy shares some Ohio Utica production numbers
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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.