Ohio area is Nation’s ‘Best Investment in Shale’
Monday, February 11, 2013
According to Crain’s Cleveland Business, Houston-based M3 Midstream is spending $1 billion in eastern Ohio. The company is rushing to bring pipelines and equipment to the area in an effort to process natural gas from the Utica shale.
Read it:
“Drillers pursue the most profitable endeavors they can find, and that means coming to the Utica shale, said Momentum president and CEO Frank Tsuru, who spoke last Tuesday, Feb. 5, to nearly 600 attendees of Shale Summit 2013, an event organized by Crain’s Cleveland Business and public broadcasting organization ideastream.”
Mr. Tsuru continued to say that, based on current well results, drillers will achieve an internal rate of return of 91% over the life of the wells.
The reason why the Utica can be so profitable is the presence of “wet gas” rather than only “dry gas.”
See our post on wet vs. dry gas.
Investments
M3 Midstream’s initial investment focuses on gas processing. The planned facilities will be capable of processing 800 million cubic feet of wet gas per day, said Mr. Tsuru. The facilities are currently under construction near Kensington, Ohio and Leesville Lake.
Read about more investments in the Utica.
» Via: Crain’s Business Cleveland › Momentum is building in Utica region
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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.