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Permalink Reply by Brad L. Harter on July 8, 2013 at 2:55pm

There are so many reasons for this it is hard to know where to start. The simple answer would be that the companies who are actually capable of drilling have more land already leased than they can put into production within the time frame of their leases. An even bigger issue is the lack of infrastructure to get the resource to market. Building pipelines in eastern Ohio runs into three difficult challenges. #1. is crossing so many different landowner.   #2. is the fact that because of fear and recent pipeline explosions few landowners want pipelines crossing their property. #3 is the terrain. Compare the challenges in this region to ND or Eastern MT. If and when pipelines do get constructed, the next question becomes where do you send it. No cracker plants currently exist in this region and only a few refineries which can't handle the massive amount of new resource that lies under this region. Add to all of this the fact that there is a strong anti drilling & fracking movement in this region. Why would any big drilling company want to set up shop in Athens County? This is only a partial list of why we won't see the resource being developed in this area in the near future.

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Permalink Reply by Donald on July 9, 2013 at 4:13am

Brad, you bring up some good points, #1 Ido believe the the large g/o co.s do have enough reserves at the present time.

I think their are other g/o co.s that would like to get in. I think its just a matter of time. some may be waiting to buy from the lager CO.S. when they buy this way it is at a premium. I have noticed that some of CHK acerage has went at 30k+ an acr. infrastrutcure is now comeing on line, and i don't think the pipe lines are a real issue, as their are many new ones and existing ones close by.

The anti drilling issue in Athens CO., is not an issue for the oil companys. this gas and oil boom is lager than the anti groupe. they need to stay out of the way or get run over. I dont beleve a company would be influenced by anti frackers. Don

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Permalink Reply by Brad L. Harter on July 9, 2013 at 5:37am

You are right in the fact that other companies are looking to get into this area, but a number of factors also come into play that many are not aware of. I have a close friend who is in charge of all deep well drilling for one of these big players. While they are in PA. they are not yet in the Ohio Utica. One thing impacting his company right now is the wait period and backlog that exist in getting drill rigs built. Add to that not having enough qualified and trained people to run those rigs.

While you are also right about the many existing pipelines and there being a big step up in new lines, using those existing lines and having a end point for the resource is more complicated that one would think. I have three very large transmission lines crossing my property and taping into those lines with the type of resource that might exist here is not all that simple. Then you still have to have a ready market for the resource. Price plays into this also, as you might guess.

You are also right on your last point. The BIG boys don't fear the anti zealots but they are also aware that it will take time, money and energy to deal with them. Given the choice of drilling somewhere like ND where communities welcome you or Athens where the mind set that exist in this region is much different...where would you position yourself first?

I have been led to believe by my friend that there is little doubt we have a recoverable resource in both Athens & Meigs County. I say this because of what has been shared with me over the last three years. Seismic testing was actually occurring in these counties a few years ago and even much farther south than most people are aware of. The results, while they have not been fully made public, were also not disappointing. Seismic testing never replaces a well being drilled and put into production but the newest 3D methods are pretty revealing.

The most exciting thing facing this area is the newest technology that is looming on the horizon. What is being learned which each new well being drilled could easily alter this countries energy dependency on the middle east. Expect to see major changes in drilling and fracturing in the next few years. As cost come down, production increases and the world's supply of oil becomes less dependable, this region could become an even bigger player than once was predicted.

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