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 Tanya Gabriele on August 3, 2011 at 9:39am
If they gave it some thought, maybe they could use the old abandoned rail ways for easements.  Why do they build refineries by waterways?  Oil and water usually spells trouble.  Why don't they focus on using rail?
Permalink Reply by David Mohn on August 3, 2011 at 4:46am
I agree, CHK is not going to let 25 billion barrel of oil just sit there waiting to sell it.  They want a return on investment like everyone does.  If there is money to be made, someone will figure out how to sell the oil, LNG, and gas from the Utica. 
Permalink Reply by Tanya Gabriele on August 3, 2011 at 9:41am
Sure they want a return.  Even the companies that drill shallow wells will hold back until the price goes up.
Permalink Reply by Missy Boardman on August 3, 2011 at 1:09pm
There's also a BP refinery in Lima Ohio. Go West on SR 30 and when you hit I75 go south about 20 miles and boom there it is.  About 3.5-4 hours away from Carroll County.  Now if the State ever finishes up with changing route 30 into a highway in the rural areas (East Canton...hint, hint Gov K.) it may be closer to 3.  I think GOT MILK should be replaced with GOT OIL, GOT JOBS AND BTW GOT GAS TOO.  LOL 
Permalink Reply by scott peterson on August 3, 2011 at 3:12pm
I like the way you think!
Permalink Reply by John Hippely on August 3, 2011 at 9:17pm
My cousin used to run that refinery (well the cracking tower to be specific) for BP. last I heard it was mothballed due to higher operating costs due to EPA regulations. I was not aware it had been reactivated. It would definately help the area though, no argument on that.
Permalink Reply by mark moll on August 4, 2011 at 2:58am
There are 2 refineries in Toledo, BP and PBF (formerly Sun). BP in Lima. United Refining in Warren PA and another in Oil City PA. Marathon in Canton, Detroit and a MUCH larger Marathon in Ashland KY on the OH river right at the south point of OH. All of which could be upgraded fairly quickly (couple years) for more throughput. Not to mention large DuPont petrochemical plants in Parkersburg WV and others in Charleston WV.........just sayin'.
Permalink Reply by David Mohn on August 4, 2011 at 3:32am
With all those places to refine the crude, maybe that is why CHK is stating the eastern Ohio is such a sweet spot?   Eastern Ohio like PA is close to the eastern seaboard for gas too.  No matter what people say, this will be a big boom for the entire economy of eastern OH.  We might not have the steel mills anymore and this is just what this area needs to get people back to work. 
Permalink Reply by Tanya Gabriele on August 4, 2011 at 11:58pm
Something doesn't add up.  If all those refineries exist, why is oil not moving from the shallow wells that already exist.  I'm telling ya.  My brother, who has been--and remains--a well tender--has tells me there have been months when companies are unable to take the oil from the well head because the rail cars that ship the oil to the refineries are FULL and are not moving.  His dispatcher tells him, the refineries are just not taking any more oil.  Who owns these refineries?
Permalink Reply by scott peterson on August 4, 2011 at 4:50am
Just talked with Nate Vaughan from KWGD who said Chespk. is actively negotiating with Dominion to utilize some of their existing pipelines. They are looking at both 8" & 30" lines.  He is representing several landowners right now in these negotiations. Interesting because I have a Dominion lines that crosses my property. Obviously this would be supplemental to constructing their own infrastructure going forward.
015334grltd9mPermalink Reply by 015334grltd9m on August 4, 2011 at 3:40am

In business one would have to assume that at this moment Chesapeake is in negotiations to monetize a portion of its leases.  This interim will determine a new offer on bonuses to reflect a production partners infusion.  The wild card will be movement by cash filled energy companies convinced to invest or compete in remaining mineral rights.  Once more production begins bonuses will be subject to the results of the minerals itself.

Permalink Reply by Farmhouse on August 4, 2011 at 11:25pm

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