Ohio’s $500 Billion Oil Dream Fades as Utica Turns Gassy

[Purveyor]

By Mike Lee & Edward Klump - Apr 15, 2013 7:00 PM ET

U.S. drillers that set up rigs amid the rolling farmland of eastern Ohio on projections underground shale held $500 billion of oil are packing up.

Four of the biggest stakeholders in untapped deposits known as the Utica Shale have put up all or part of their acreage for sale, as prices fall by a third in some cases. Chesapeake Energy Corp. (CHK) of Oklahoma City, the biggest U.S. shale lease owner, last week offered up 94,200 acres (38,121 hectares). EnerVest Ltd. and Devon Energy Corp. (DVN) are selling as early results show lower production than their predictions.

“The results were somewhat disappointing,” said Philip Weiss, an analyst with Argus Research in New York. Early data show “it’s not as good as we thought it was going to be.”

The flip-flop underscores the difficulties faced by even experienced drillers around the world in tapping the sedimentary rock. In California, Occidental Petroleum Corp. was stymied by the Monterey Shale’s fault-riddled terrain. In Poland, Exxon Mobil Corp. (XOM) stopped drilling because shale output was minimal. China’s failures with shale gas drove producers Cnooc Ltd. and China Petrochemical Corp. to seek expertise in North America.

In Ohio’s Utica formation, which runs eastward as far as New York, drillers frequently found the rock too dense and underground pressures insufficient to produce oil.

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http://www.bloomberg.com/news/2013-04-15/ohio-s-500-billion-oil-dream-fades-as-utica-turns-gassy.html

[Champion Jack]

1. Boom dot bust! Ruining rural America for multinational Corporations!

[egold2604]

2. Drill Baby Drill

All you have to do is Drill Baby Drill. What is wrong with these companies. They hate America.

[benld74]

3. What are the odds they left all their crap in Ohio when they left???

[leftyohiolib]

4. of course, it's ohio.im surprised kasick hasnt sold lake erie for spent fuel rod storage