Chesapeake Declares Eastern Ohio RICH IN OIL!

Matthew Steffy of the Tribune Chronicle (July 29, 2011) reported an announcement made by Chesapeake:  "Utica Shale in eastern Ohio is liquid rich."  These results follow two years of "proprietary geoscientific, petrophysical and engineering research performed by Chesapeake. Eastern Ohio Utica Shale is said to be "characterized by a western oil phase, a central wet gas phase, and an eastern dry gas phase."   Chesapeake who currently holds 18 of the 24 drilling permits in Ohio plans to drill 20 wells by 2012 and 40 wells by 2014.  The discovery is said to increase the value of Chesapeake by $15 to $20 billion.

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Permalink Reply by scott peterson on August 5, 2011 at 6:32am
Dominion & Chspk have a strong relationship. The big wheels are turning!
Permalink Reply by Tanya Gabriele on August 5, 2011 at 7:02am
I was looking at gas prices (gasoline) on the internet yesterday.  I needed to fill my car and I was looking for the best price.  I learned that gas prices around the Youngstown-Akron area were between $3.55 and $3.69.  While gas prices in Columbus as well as Cleveland were $3.41 and up. Our area is impoverished compared to Columbus.  So--why is are area being hit the hardest?
Permalink Reply by Jim Litwinowicz on August 5, 2011 at 9:32am

@Tanya Gabriel; these refineries are at capacity.  There is so much oil being produced that they can't handle it all. And we have just gotten started. If CHK is gonna drill a lot more wells, these refineries will have to expand dramatically.

 

@ Mark; Its good to see all these refineries but they are all small and already at capacity. I don't know how much excess space they have to expand into but it will take time. Even expansion requires permitting and that can be difficult. CHK's statement of a large oil find is so new that companies are probably just now thinking about how much to expand, let alone starting the process.

 

Capitalists can move quickly when incentivised but think of the supply chain. How many refineries can be built in two years? How many crackers, towers, separators, compressors, and more can be built? How many rail tankers can be built? How quickly can pipeline be built...especially when pipelines are being built all over the country, limiting supply? How many barges and tugs are there that are not already in use?  All of this takes steel...how many steel mills do we have with the excess capacity to handle all the new demand?

 

All of this takes time and money. And since so many areas are cranking up....the Bakken....the Eastern Marcellus...the Eagle Ford.......Barnett....Haynesville.... and many more....that there will be supply issues for a very long time. And all this competing development will slow local development.

 

The potential to change both the local and the US economies is huge. All the jobs created and the improved foreign trade balance will have a dramatic impact. Its all good. Just allow for the time it will take to play out.

Permalink Reply by Tanya Gabriele on August 6, 2011 at 6:38am
Now that makes better sense.    I think a few of us were getting a little carried away.  Thank you very much.
Permalink Reply by Deci Ruiz on August 6, 2011 at 7:10am
I think someone should tell Washington, jobs jobs jobs
Permalink Reply by Tanya Gabriele on August 6, 2011 at 7:55am
I am not so sure Washington is for the people.  If the Republicans had their way, they would hire Mexicans instead of Ohioans to build the infrastructure.  Most Americans--like us--would not see a damn dime.  Isn't ironic?  Decades ago--people thought it was unpatriotic to forgo paying taxes.  The Rich Republicans feel they are above it.  I'd like to see a Republican--who is against taxes--say he will work for free in public office.
Permalink Reply by Deci Ruiz on August 6, 2011 at 8:03am
You and me both, the rich 2% could fix the problem in this country if they paid there" fair "share.
Permalink Reply by Philip Dobeck on August 6, 2011 at 8:43am
How much do you think "Their fair share"  is in terms of percent?
Permalink Reply by David Mohn on August 6, 2011 at 8:06am
Politician in general, and I don't care what party you belong to, should realize they work FOR the people of the United States.  I don't care if they get paid a NORMAL salary WHEN they show up for work.  But they do work for us.  The last I read the constitution, it read  "We the people of the United States"  It doesn't say we the people that came here illegally!!!!
Permalink Reply by Hunter on August 6, 2011 at 8:38am
If the liberals(democrats) had there way we will never drill any of this oil and gas and if we did they would want the money to pay for teachers salaries and food stamps.
Permalink Reply by Carol on August 8, 2011 at 10:08am
My thoughts exactly. Thank God for the Republicans.
Permalink Reply by mbc on August 6, 2011 at 12:05pm

For the sake of not turning this website into a wasteland of politics, let's please leave our personal generalized political statements, which are never completely informed and most always biased, stereotypical, unsolicited judgements', out of the conversation.  Thank you.  (And may we all get rich and pay our fair share.)

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