Utica may hold a lot of gas, but it isn’t always economical to produce
Thursday, July 30, 2015
A recent released about the Utica Shale and its potential for future oil and gas production has been met with both criticism and positivity.
Herald-Star reports that while companies such as Consol Energy are cutting their workforces to make it through the current trend of low commodity prices, other companies like Antero Resources are optimistic about the opportunities that lie within the Utica.
Ohio Oil and Gas Association Senior Vice President Shawn Bennett said that the estimated 782 trillion cubic feet of natural gas in the Utica is not yet proven. Due to the cost of drilling and fracking, plus Ohio’s lack of pipeline infrastructure, getting the gas to markets is not currently economical.
Via: Herald-Star > Utica holds lots of gas, but not all of it is economical
More about the Utica Shale:
- WVU study reveals Utica’s characteristics July 23, 2015
- Groups respond differently to recent Utica Shale research July 20, 2015
- New research shows Utica may have greater potential than previously thought July 17, 2015
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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.
So it takes investment.
It ought to be subsidized from the National Defense Purse IMHO.