I have been told different things about what the low oil prices mean to the drilling boom in the Utica, especially to the Ohio boom where we have more oil than gas... Does anyone have any accurate info on this subject....

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Are you sure we have more oil than gas is Ohio.  I thought the dry gas and the NGLs were greater than the oil in most of Ohio.

Hi Robert, I was under the impression that the Utica was wetter than the Marcellus and that there is more oil here than in PA.  

My check info shows oil much more than gas.Maybe 3 times more.

Asset Management.
Jesse,

What sense of the word dissipation are you referring to ?

1) Wasteful squandering of wealth ?
2) Simply spreading it around / diffusion perhaps as planned ?
3) Frivolous dispersion ?
4) Non- harmful / harmless amusement ?

Just a few ways to adjectively apply the word as I read it's dictionary definition.

What is your meaning in it's application ?

Can you be a little more precise in explaining your meaning ?
Thanks Jessee.

I just dont know myself.

One thing that hasn't happened yet is isolating the domestic supply to non-OPEC domestic supplers by law.

No non-allied energy purchases or sales / exports.

Do you think that might happen in the perhaps nearer future ?

I can't rule it out myself.

http://www.theintelligencer.net/page/content.detail/id/619701/Shale...

Shale Output May Drop As Oil Prices Plunge

December 13, 2014
By CASEY JUNKINS Staff Writer The Intelligencer / Wheeling News-Register

ST. CLAIRSVILLE - Even as Utica and Marcellus shale companies set records for oil and natural gas production, plummeting oil prices likely will lead some to ditch their short-term drilling plans, industry officials said Friday.

"Even just a few weeks ago, it was about $80. Now, it's under $60," said Shawn Bennett, senior vice president of the Ohio Oil and Gas Association. "Low commodity prices are causing some companies developing in shale areas to re-evaluate their drilling plans. Some, unfortunately, are going to start laying down rigs."

"I would suspect that things will slow a little in the short-term," added Tim Carr, a geology professor at West Virginia University. "In the long-term, if it stays low, then it will hurt."

According to the Ohio Department of Natural Resources, drillers produced more than 132 billion cubic feet of natural gas from July 1 through Sept. 30, up from 88 billion during the previous three-month period - and more than the 100 billion drawn from the entire state in all of 2013. In terms of Utica oil, the numbers show Buckeye State drillers increased production by 546,000 barrels during the period from July 1-Sept. 30, compared to the April 1-June 30 time frame.

Generally speaking, the farther west one travels in Ohio, the more likely they are to find oil in the Utica Shale.

Bennett said PDC Energy, a firm with wells across Ohio, does not plan any drilling in the Buckeye State next year because of the lower oil prices, as the company will instead focus its efforts on the Wattenberg gas field in Colorado.

"We will continue to monitor crude oil and natural gas pricing and have the operational flexibility to adjust capital spending in Wattenberg or Utica should commodity prices change materially," PDC President and CEO Bart Brookman said regarding his company's plans to cut its drilling budget by 14 percent for 2015.

As PDC diverts its exploration and production efforts away from the Utica Shale, global oil giants BP and ConocoPhillips are also bracing for collapsing crude prices. This week, BP officials announced a $1 billion "restructuring" plan that may put many workers in the unemployment line.

ConocoPhillips, meanwhile, slashed its drilling budget by 20 percent for 2015, emphasizing it will defer spending in North American shale plays.

"We are setting our 2015 capital budget at a level that we believe is prudent given the current environment," Ryan Lance, ConocoPhillips chairman CEO, said.

However, a Congressional Budget Office report released this week disputes the concept that U.S. shale oil production is causing crude prices to collapse. Instead, the CBO report attributes the oil price drop to "a rapid increase in Libyan production and a slowdown of consumption in Europe and Asia."

Nevertheless, Bennett said each shale driller will need to make its own decision on how much it continues to drill. Some companies simply have too much of an investment already in place simply to walk away, he said.

"Companies operating in Belmont or Monroe counties will continue to make money, as long as natural gas prices stay up," he said, noting most of these producers are drawing natural gas, as well as liquids such as ethane, propane and butane. "You're unlikely to see companies just pull up and leave there. But in the oil patch, there will be a slowdown."

R. Dennis Xander, past president of the Independent Oil and Gas Association of West Virginia, said lower oil prices help the economy because of the presence of cheap energy.

"I don't think this will impact those drilling for dry natural gas at all," he said. "If you have signed a contract to put gas in a pipeline, you are going to have to put gas in that pipeline to fulfill your contract."

Hello,  I am new to GMS, but enjoy reading and learning what I can from experts.  I was so surprised to read what you said about the Wattenberg gas field in Colorado, as that is where my mineral rights are. My royalty checks have been dwindling and I have received several offers from oil  companies to buy my mineral rights. I have been seriously considering it, thinking shale drilling is on the way out.  Maybe not? I am a widow and new at all this. Would you advise me to hang on to my acres, or sell while I still have offers?  Any thoughts on the matter?  Thanks,  MP in Or.

never sell unless you choose to hurt your heirs and kinfolk;my parents gave 1/4 away  of 440 acres in the Bakken  formation in ND back in 1971

Thank you, Larry, for your good advice, coming from the voice of experience. I appreciate it. Even if I don't see profit in my lifetime, I have 2 fine sons who will have a chance if I hang on. I appreciate your sharing your input.  MP

From what I read on these pages it can also work out to be damaging to both yourself and your heirs to not.

Personally, these days I'm thinking that there are virtues in selling part and holding part too.

Everybody is free to make up their own mind on it based on their personal circumstances and interpretations.

I'm thinking partnering may also work to spur on development.

It's all up to the individual owner as to what's best.

Good luck to all (including me and mine). I think we need it.

Before you sell part of your mineral rights and become partners with a stranger, make sure that you understand how they could force you to sell them the remainder of your mineral rights using a legal "Partition"

http://en.wikipedia.org/wiki/Partition_%28law%29

 

"A partition is a term used in the law of real property to describe an act, by a court order or otherwise, to divide up aconcurrent estate into separate portions representing the proportionate interests of the tenants. Under the common law, any tenant who owns an undivided concurrent interest in land can seek such a division. In some cases, the parties agree to a specific division of the land; if they are unable to do so, the court will determine an appropriate division. A sole owner, or several owners, of a piece of land may partition its/their land by entering a Deed poll (sometimes referred to as "carving out").

There are three kinds of partition which can be awarded by court: partition in kindpartition by allotment, and partition by sale. A partition in kind is a division of the property itself among the co-owners. Partition in kind is a default method of property partition.[1] In a partition by allotment, which is not available in all jurisdictions, the court awards full ownership of the land to a single owner or subset of owners, and orders them to pay the person or persons divested of ownership for the interest awarded. Partition by sale constitutes a forced sale of the land, followed by division of the profits thus realized among the tenants. Generally, the court is supposed to order a partition sale only if the land cannot be physically divided, although this determination often rests on whether the economic value of the divided pieces is less in the aggregate than the value of the parcel as a single piece. See Delfino v. Vealencis, 436 A.2d 27 (Conn. 1980).

A provision in a deed completely prohibiting partition will not be given effect, but courts will enforce a provision that temporarily restricts partition, as long as the restriction is reasonable."

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