Replies to This Discussion

Permalink Reply by TM on April 17, 2013 at 12:23pm

http://www.eidohio.org/bloomberg-misses-the-mark-on-utica-development/

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Permalink Reply by Bluflame on April 17, 2013 at 2:59pm

JODI,

  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".

BluFlame

 

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Permalink Reply by Bluflame on April 18, 2013 at 2:34am

JODI,

  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".

BluFlame

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Permalink Reply by 0i7okn54zwbdo on April 18, 2013 at 1:57am

"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.

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Permalink Reply by Unbiased Information on April 17, 2013 at 8:26am

JR,

Chokes are typically employed to regulate reservoir pressure.  If oil/gas is flowed too rapidly, it can negatively impact reservoir pressure and future production.

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Permalink Reply by Jason Grecco on April 17, 2013 at 12:45pm

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.

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Permalink Reply by Robert Martin on April 17, 2013 at 8:04am

From: DNR oilandgas a href="mailto:oilandgas@dnr.state.oh.us" target="_blank">oilandgas@dnr.state.oh.us>
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.

 

Jocelyn Kozlowski

Public Information Officer

Division of Oil and Gas Resources Management

2045 Morse Road, Bldg. F-2

Columbus, OH 43229

614.265.6920

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Permalink Reply by Graham on April 17, 2013 at 10:46am

What they are trying to do isn't easy.

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Permalink Reply by 0i7okn54zwbdo on April 18, 2013 at 3:10am

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.

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Permalink Reply by Mark Allen on April 18, 2013 at 4:49am

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.    

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Permalink Reply by Dan on April 18, 2013 at 5:34am

Kasich probably would like the info to trickle out as to not ruin his trickle up tax scheme.

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Permalink Reply by Mark Allen on April 19, 2013 at 12:20am

Any reason why there is action in Huron and Senaca counties. What about the other formations, ie drilling the Clinton sands,horizontal? This source rock is only the beginning,Ohio is ground zero, for Buckeye Oil,drilled here, processed and refined here and soon to be sold here. Rail transport and development coming to a town near u..... did u ever think u would hear it say that SOHIO lives again. Marcus, u need to wake up, rub your eyes and focus, because your missing out on a lot of data that is contrary to your posts.

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