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EnvestorFirst (42.01)

Anadarko and Chevron Gear Up for Major Fracking in Ohio

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December 30, 2011 – Comments (2) | RELATED TICKERS: APC , CVX

Ohio hasn’t been quite so much in the center of the fracking debate. However, it may begin to be considering that big oil is about to make their mark on the state. Chevron and Anadarko are prepping to do some major drilling in Ohio in the next year. The Trefis Team explains why Ohio and some details about the plan.

"Suitable location

Shale deposits in Ohio have drawn significant interest from major industry players owing to the location’s suitability. Ohio, once the home of Standard Oil, has a well-connected network of pipelines and waterways that help transport output to the markets with ease.[1]

Transportation has been a major bottleneck for the shale industry development in the Bakken shale in North Dakota where producers have to rely on the intermittent rail transport. The state of Ohio is expected to produce 200,000 barrels of crude/day by 2020, helping Chevron and other players improve their domestic production."

 

Read the entire article here: 

http://turnkeyoil.com/2011/12/30/anadarko-and-chevron-gear-up-for-major-fracking-in-ohio/

 

2 Comments – Post Your Own

#1) On December 30, 2011 at 12:43 PM, amassafortune (29.41) wrote:

Jobs, jobs, jobs.

There is a proposal to truck waste water to Mansfield, OH where it will be injected underground. Mansfield is one of the worst-hit areas for unemployment and may have another round of city layoffs as early as today. 

How many jobs will be created at this wastwater disposal terminal? Two or three. More truckers will get some work, though.

The desperate need for jobs changes the discussion. After Ohio voters rejected casinos several times in state-wide referendums, the economy headed down. The casinos will begin opening this spring.

Landowners are already getting offers for gas land leases. The ones I've heard about get $300-$400 per acre. In some rural areas, land can be had for under $2k per acre. 

The Ohio Department of Natrual Resources is justified to be cautious. After being clearcut in the early 1900s, Ohio is now about 75% reforested, surprising for a state that is still heavily industrialized. Ohio is now a significant draw for hunter tourism and is a top national area for bagging trophy bucks.  

Central Ohio exceeded 53" of rainfall this year, a new record. Lake Erie has a very active tourism and commercial fishing economy.  

There's no reason to move quickly, other than the jobs situation. Anyone with a job to add has a friend in Governor Kasich. Then again, anyone who will allow him to add risk to their public pension fund had a friend in Kasich before he was elected.

Plentiful, clean water supports residential development, agriculture, sport tourism, and industry.

Gas and oil extraction has been active in Ohio for over 100 years. Surface coal and shale areas are common. Small, working oil rigs dot farms and private properties, and have been an important source of family income for decades.

Chevron and Anadarko are not developing the oil and gas industry in Ohio, but rather proposing to deplete the resource at a faster rate using new techniques. When they are done, those small, family wells will either be dry or produce at a much slower rate.

The longer states wait, the more valuable the resource becomes, and the more information there will be on the environmental risks.The water will always be worth more than the oil when viewed over a longer timeframe.

Politics being what it is, the short-term jobs shortage in Ohio will give these proposals special consideration and fracking will probably be allowed in most areas. ODNR personnel who discover data that counters the desire to move forward with these projects risk being OfficeSpaced.        

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#2) On January 03, 2012 at 11:02 AM, EnvestorFirst (42.01) wrote:

Thanks for this awsome information. Gives great perspective on the issue.

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