Tuesday, July 17, 2012

Economic Optimism For Ohio And Utica Shale Oil And Gas

It sure looks to me like Ohio and the rest of the "Rust Belt" could use some positive economic news.  Let's hope the development of the Utica Shale (and the other shale formations) for oil and gas works out.  The area has attracted a lot of industry interest, and usually these companies do not invest the amounts of money they have been putting into leasing up acreage in Ohio without being pretty certain of success.  This is an emerging play to pay close attention to.

BP CEO: In Early Stages Of Evaluating Ohio's Shale Potential
BP PLC is in the early stages of evaluating Ohio's energy potential but believes the state--which is home to the emerging Utica shale--could be a significant contributor to the energy industry, Chief Executive Bob Dudley said Friday.

In a speech in Cleveland, Mr. Dudley said BP technicians are already on the ground "advancing a plan to safely appraise the resources" the company is prospecting in leases acquired about four months ago in the Utica and Point Pleasant shales, according to a transcript of the speech.
The executive cited estimates by the Ohio Department of Natural Resources that put the state's recoverable shale potential at up to 5.5 billion barrels of oil and 15.7 trillion cubic feet of natural gas.
"In the coming months, we expect to acquire seismic surveys, prepare a development plan and survey land for initial wells to be drilled next year," Mr. Dudley said.

BP is one of several companies seeking to tap the unconventional oil resources that have revolutionized energy production in the U.S
Production of natural gas in the neighboring Marcellus shale, which underlies several northeastern states, has revitalized formerly depressed areas by providing cheap energy for steel manufacturing and low-cost feedstock for chemical products. The oil industry hopes that the shales underlying Ohio could have large deposits of profitable crude oil.
Copyright (c) 2012 Dow Jones & Company, Inc

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