Has Ohio’s Shale Oil Dream Faded?
Tuesday, April 16, 2013
According to Bloomberg, drillers that set up rigs in Ohio’s Utica shale are withdrawing from the shale play amid less-than-stellar production reports.
The biggest disappointment isn’t the amount of product being produced, rather, it’s what is being produced. The Utica is producing more natural gas than oil.
Bloomberg reports the three biggest stakeholders in Ohio’s Utica shale, Chesapeake Energy Corp., EnerVest Ltd. and Devon Energy Corp. Are selling leased acreage.
Many drilling companies were hoping to see more oil from the shale play.
Read it:
“In Ohio’s Utica formation, which runs eastward as far as New York, drillers frequently found the rock too dense and underground pressures insufficient to produce oil.
The rush to buy acreage has reversed.”
» Via: Bloomberg › Ohio’s $500 Billion Oil Dream Fades as Utica Turns Gassy
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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.