It is ridiculous to me that the ODNR has not yet made any formal statement about 2012 well results, and instead allowed Bloomberg (liberal) media beat them to the punch about what a "disappointment" the Utica play is. This story has been picked up by national, and regional media all week, with not one response.
I can see the writing on the wall that the oil window is disappointing, but the way the ODNR has handled (or not) the dissemination and analysis of 2012 well results is inexcusable. They have the information necessary to highlight areas with potential, and sadly disappoint others. But they are the keepers of the information and should be the disseminators of the news.
Can't wait to see what the new map looks like.
That's my rant for the day.
I've read various accounts of the problems with the oil zone. Since the Utica is shallower in the oil zone than the wet-gas or dry-gas zone, I've read accounts that nat gas did not become part of the mix. The presence of gas would create well pressure, but it isn't the only problem.
Another contributing factor is the high viscosity of the oil present in the western zones. It makes it difficult to stimulate flow out of the fissures following fracking. Furthermore, the oil well service companies haven't perfected the appropriate proppant to hold the fissures open to permit flow.
I believe these three factors all contribute to problems in the oil zone. Working out all these problems is an expensive trial & error proposition with no guarantee of success. I think when economics improve, the E&P's will return to the Utica oil zone.
All this is strictly my opinion, as I do not purport to be an "expert".
Very interesting....I had not seen this Seeking Alpha article. A couple of observations:
1. The info is ~ 1 year old.
2. IP's and EUR's of the best Utica wells are much higher than those noted in the article.
3. As you note, there seems to be similarity between the EagleFord oil zone and the Utica oil zone. Begs the question, why not adopt EagleFord methodology in the Utica oil zone? Answer may be different E&P's in the mix.
4. Interesting that reported prices for acreage are much higher in the EagleFord than the Utica despite better results in the Utica. Could be a matter of infrastructure readily accessible or maybe better results have occurred in the ensuing year. Maybe Texans are better negotiators!
5. Seems to confirm Aubrey McClendon's assertion that the Utica will be "similar to, but economically superior to the EagleFord".
"I think when economics improve, the E&P's will return to the Utica oil zone."
The problem with that is that if $90 oil isn't economic enough then you ought to walk away.
Chokes are typically employed to regulate reservoir pressure. If oil/gas is flowed too rapidly, it can negatively impact reservoir pressure and future production.
As Blue Flame indicated the lack of Midstream infrastructure has drastically affected the development of this play. The Devon wells (Ashland and Medina County) were so far west, they cant really set the pace for the play. I think this is the normal progression of an oil/gas play and only time will tell if this play has the value we have been led to believe. Being a landowner in several counties, I hope that the Bloomberg articles are way off base.
From: DNR oilandgas a href="mailto:firstname.lastname@example.org" target="_blank">email@example.com>
Date: Tue, Apr 16, 2013 at 1:33 PM
Subject: RE: 2012 Oil/Gas production data
Thank you for writing. Our division is currently compiling this data for publication. This information should be available within the next two weeks.
Public Information Officer
Division of Oil and Gas Resources Management
2045 Morse Road, Bldg. F-2
Columbus, OH 43229
What they are trying to do isn't easy.
It doesn't matter how far west the map goes, it matters how far west the drillers go. CHK is dumping acreage in that distant, western county known as...Portage. Yeah, that's how much they think the window has shrunken. I've only been saying this for three years now but I'll do it one more time: this play will contract to maybe 10-15% of its original size. The rest will be a total crapshoot. You know, like literally every other shale play ever.
where is Wickstrom....we need Larry and his old staff. This is typical for the new administration, they are holding info from their taxpayers. State mandated reports are filed, review and release please. 45 WELLS, the horizontal Utica and Point Pleasant is what the majority is looking for. The vertical reports are important also , but the money is hedged on the shale play.
Slow the scare tactics down...who is Bloomberg and what do they know about the play. Their article is extremely misleading. Yes Devon is selling and yes Enervest and Chesapeake are selling ,some acreage...this has nothing to do with the quality and or quantity of the oil window. Many factors go into Devon's reasons and of course anyone with half a brain understands positioning and centering.
Wake up folks this is our state and our data...call the Gov's office demand the info gets released to the public!
It maybe the chief does not have Kascih's blessing yet, it maybe that we need stock options to cover or that large contributers to the party want time to react.
God forbid someone releases info that is factual and on time...if they do ,they may get fired!...excuse me that would be demoted...sorry Larry.
Kasich probably would like the info to trickle out as to not ruin his trickle up tax scheme.