Do you want China to profit from your land?

Read your business paper/column, please.  Chesapeake come into an area, pays the highest amount heard of, runs all the other operators out, and then sells their interests to China and India to finance their next move. 

 

They have done it with their Barnett holdings, Haynesville holdings, Eagle Ford holdings, and will be doing it with their Utica holdings.

 

There are plenty of other companies to work with that work with institutinal monies and the monies remain stateside - the biggest bonus check is not always the best bonus check.

 

Don't take it wrong, I do not have anything against capitalism, just communists practising it in my country, on my land.

 

No Chesapeake for me, I don't care how much money comes to my hand. 

 

Chesapeake, Shell (East Resources), Chevron (Atlas), Exxon (PGE), all have said they are going to run the shale business.  They have stated they will make it to where there will  only be 6 operators in the Marcellus, do you think that will be good for the local economy?  I have found smaller operators that have access to institutional monies that do complete the drilling, and they have better relationships with the landowners. 

 

Think about it - I can't change your mind, I only want everyone to consider the ramifications of just accepting the biggest check they can get.

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Replies to This Discussion

Permalink Reply by Craig on May 16, 2011 at 5:21pm

CHK is there in an area AFTER a small company developed the process by which they are tapping shale gas.  Good for them.

 

My position is the farmers do have an alternative.  Even the small guys in your area not drilling doesn't mean squat since most likely at the time the small driller who determined the manner in which gas could be drawn from shale, had not done so, or it was not applied heaviuly, they cannot be slighted for that.  The smaller operators still in the business can get it done, they are getting it done, and all one has to do is look for the ones that are getting it done.

 

CHK is what it is, the apple of your eye, I'm glad for you, not mine.

 

I never said they didn't drill, I am saying they are not the only game in town, and I would rather deal with someone that I feel comfortable with profiting off my resources.

 

My, you all take things in such a way and with such a vehemence to make one think you have a vested interest in their success.  Why?  My vested interest is in my success, and I choose to find one with whom to work that I can trust to get it done, and not sell it off to China at the drop of a hat.

Permalink Reply by Bill anders on May 17, 2011 at 10:57am

Craig, i agree with your position that their are alternatives.  However, when it comes to who is going to make YOU the most money from your minerals we obviously differ in opinions.  There are companies that do this all over the country, drill more wells than others, pay out more royalties than others, drill more productive wells than others, and have access to capital in which others do not, have more extensive geological data, and in return are going to continue to lead the industry. If you look at the risk reward in your future decision i would recommend doing some research on your future operator's track record.  If there is none, it is hard to compare.  Sure it is easy to find flaws in the largest company who has often times 10X the activity as others, you will find that in any industry.  

Industry wide you will find a select few who have done this successfully all over the country, and there are a very select few out there in OH at this time.  It seems obvious who the biggest player at this point in time is.  Now biggest does not always mean best, and i understand that. But to make the argument that anybody can do this is flawed.  If you do some research you will find a lot of capable companies that have played in Eastern OH and have since left, deeming it uneconomic or placing their resources in another area.  These are big companies that have simply walked from the Utica in order to develop resources they find more appetizing.  I believe many will benefit from this emerging play, however from the outside looking in it seems that one has put all their cards on the table here.

Permalink Reply by Kathleen Elsie Gibbs on May 18, 2011 at 11:39am

I am not from OHIO. I am from WPA.  

When I first watched the drilling from our area I was was thrilled about the fact that we were drilling and that this would help to make the USA more independent for our energy. The disruption of normal life for us is hard but tempory and if done well  won't have far reaching problems.

Now it seems that the gas won't be used here. It will be shipped to India, China and other places. My neighbors and local areas won't have the opportunity to tap into the NG system (we aren't profitable enough to warrant a domestic gas line).

Shipping the gas over seas is not something I support. We need to use it here first.

 

Permalink Reply by Bill anders on May 18, 2011 at 3:16pm

Gas from the Washington, PA area is going either to NY, or Chicago.  None of this is being exported.  Not sure where you get your information from.  Let me know where the closest LNG plant for exporting is?  This is why the Marcellus and Utica are such hotspots, they are closest to the NE where much of demand is.  

Everyone see's China or India in a press release and assumes this is where the product is going.  These foreign companies are investing in American companies, that is all it is!  

Permalink Reply by Kathleen Elsie Gibbs on May 18, 2011 at 3:52pm

Bill two of our PA representatives have sponsored a Bill to allow the exportation of the gas from the Marcellus to China and India.

 

  1. Pennsylvania Congressman Glenn "GT" Thompson says he favors exportingMarcellus shale natural gas to countries like China that do not have free trade agreements with ...
    www.pittsburghlive.com/x/pittsburghtrib/news/regional/s... - Cached
  1. PA Marcellus Shale Gas is Getting a Pipeline ... recently to transport Marcellus gas into the US Northeast, this is the first major export proposal to pit Pennsylvania gas ...
    marcellusdrilling.com/2010/02/pa-marcellus-shale-gas-is... - Cached
Permalink Reply by Finnbear on May 19, 2011 at 11:16pm

Please explain how they propose to ship natural gas to China ond India. Pipeline across the Pacific? Pipeline up thru Canada, Alaska, across the Bering Strait, down thru Russia and then into China?

Permalink Reply by Kathleen Elsie Gibbs on May 20, 2011 at 7:14am
First they will be using tanker ships. Pipe lines will take the product to the ports for export.
Permalink Reply by Finnbear on May 20, 2011 at 8:01am
Tanker ships carry oil, not natural gas
Permalink Reply by Nate on May 20, 2011 at 8:52am
Natural Gas can be shipped this way. It's call LNG because they freeze it to the point where the gas liquefies.
Permalink Reply by Finnbear on May 20, 2011 at 9:19am
How much is actually shipped overseas in this manner?
Permalink Reply by Nate on May 20, 2011 at 9:31am
The US isn't a large exporter in this, yet. There has been talk of building a LNG terminal in Jersey. However, LNG is more of a European thing at this time. For example: Japan gets all of it's natural gas through LNG from neighboring countries with production.
Permalink Reply by Rich Koehler on May 23, 2011 at 8:52pm
It wasn't all that long ago that we were importing LNG by the boatloads.  The same terminals could work to export it, methinks.

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