A totally unexpected announcement from the largest oil driller in the USA was just made. It should be a job creator and economic boost to one of the rust belt states, Ohio. Hopefully, our government will not put too many roadblocks in the path of development. How this is handled will give good insight into how our Washington salons are working, either for good or ill. Two of the priests in the photo have strong Ohio ties.
Fr. Orthohippo August 4, 2011
July 29, 2011
An energy exploration company active in Ohio has declared the Utica Shale formation ”liquid rich” in eastern Ohio, meaning the geological formation contains oil.
Utica Shale is a geological formation found several thousand feet below sea level, much deeper than the commonly discussed Marcellus Shale, a natural gas-rich formation that is now being explored in eastern Ohio and Pennsylvania.
On Thursday, Chesapeake Energy, based in Oklahoma City, released its quarterly earnings report, including in it references to this latest mineral find. Chesapeake, which holds 18 of the 24 permits to drill into Utica Shale in the state, said results of recent drilling indicate oil in eastern Ohio.
”Chesapeake is announcing the discovery of a major new liquids-rich play in the Utica Shale,” the report said, noting that the finding was based on two years of ”proprietary geoscientific, petrophysical and engineering research.”
Chesapeake’s report indicated that the discovery could be worth a $15 billion or $20 billion increase in company value.
“The company believes the Utica Shale will be characterized by a western oil phase, central wet gas phase and an eastern dry gas phase,” the report said. Also, it said Utica Shale should be “economically superior to the Eagle Ford Shale in South Texas.”
The news of Chesapeake’s announcement spread quickly, and Gov. John R. Kasich responded Thursday evening.
”This is huge news for Ohioans and I’m simply thrilled to hear it,” he said. ”I’m especially glad that this can mean a shot-in-the-arm for eastern Ohio.”
Kasich said his administration will focus on maximizing ”job creation and environmental stewardship,” and referenced a energy policy summit scheduled for September. He said natural gas and oil play could lead to long-term earnings in well services, pipeline instillation and energy processing.
“I believe that we could be at a beginning of a new and extended positive chapter in Ohio’s economy,” he said.
Locally, V&M Star could be positively affected. Vince Bevacqua, spokesman for V&M, said the corporation produces pipes that are used for the transmission of natural gas, and it could possibly produce the pipes that would be needed for the construction of oil-transmission infrastructure.
Chesapeake has five rigs operating in the Utica Shale formation, and plans to have more than 20 by the end of 2012 and 40 rigs by 2014, the report said.