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Utica Shale area smaller than some thought, bodes well for Valley


Published: Sun, January 6, 2013 @ 12:10 a.m.

By Burton Speakman

bspeakman@vindy.com

YOUNGSTOWN

The production area of the Utica Shale is shrinking compared with some industry expectations, but that won’t necessarily be a bad thing for the Mahoning Valley.

“It’s a good thing for the Mahoning Valley that the shale play is being defined, and the area is right in the heart of it all,” said Dan Alfaro, spokesman for Energy-In-Depth, an oil-and-gas industry outreach group.

A condensed shale area that is closer to the Valley should mean more impact for the area economically, he said.

Better boundaries of the Utica Shale began being defined after a number of companies drilled wells at what was believed to be its western and southern edges.

Devon Energy, which was operating in much of what was previously believed to be the potential western edge of the shale, elected to plug wells in Medina and Ashland counties, according to Ohio Department of Natural Resources records.

Initial results from Devon Energy’s oil and natural gas well in Ashland County were “not encouraging,” according to David A. Hager, executive vice president of exploration and production, in a statement.

While the Ashland County and Medina County wells are on the northwestern fringe of Oklahoma-based Devon’s leased-acreage in Ohio, company officials said they plan to continue drilling in Ohio, but will move east.

The three most active counties in drilling activity are Carroll, Columbiana and Harrison counties.

Multiple wells belonging to HG Energy LLC and Antero Resources Appalachian Corp. have been plugged in Noble and Monroe counties on the shale’s southern edge. Other wells are still active and producing in both counties, according to ODNR records. Additional wells were plugged in Portage and Stark counties on the current western border of the producing shale. These counties also have producing wells and additional drilling under way.

In the long-term, the condensing of the shale area should help the Mahoning Valley economically because oil-field services companies will be able to locate more centrally and won’t be as spread out, said Eric Planey, vice president for international business attraction at the Youngstown/Warren Regional Chamber.

“It won’t matter as much for the midstream services companies who are locating to position themselves for both the Marcellus and Utica shales,” he said. “I don’t think it will have much impact on the supply chain jobs.”

One of the key aspects that will help determine the local activity are the results of the 10 exploratory wells that BP plans to drill in Trumbull County in 2013, Planey said. There could be significantly more local economic development if Trumbull County wells are successful.

Companies already are looking at northern Trumbull and Ashtabula counties, and the proximity between Interstates 80 and 90 puts them in good position in terms of transportation, he said.

BP, Chesapeake and Halcon already have spent millions of dollars to lease land in Trumbull County. BP invested more than $300 million in leases, Halcon $194 million, and Chesapeake spent about $35 million to purchase mineral rights leases from Eastern Everflow.

It’s important that companies learn the limitations of the shale and define its borders, Alfaro said.

“I don’t think a lot of people understand how much companies spend for exploration,” he said.

Once these companies start drilling, there are no guarantees they are going to find anything, Alfaro said.

One of the area’s clearest signs of economic development in the Valley related to shale is the Exterran building that is nearing completion on Salt Springs Road.

Expectations are that Exterran will open the facility in late February with about 50 employees, said Susan Moore, spokeswoman for the company.

“Things will continue to ramp up from there and we’ll be up to about 80 employees by the end of the quarter,” she said.

The company is still recruiting welders, machinists and material handlers, who will make up the majority of the employees at the Youngstown site, Moore said.


Comments

1ibsteve2u(8 comments)posted 1 year, 11 months ago

Above you will see an example of a cartoon that couldn't find the cartoon page.

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2UticaShale(854 comments)posted 1 year, 11 months ago

What makes Eric Planey of the Chamber and authority on anything to do with the Utica Shale play? Isn't he the same grandstander who claimed to bring millions of dollars into Youngstown with rich Asians? It kills me that the Chamber sucks up PORK and membership fees then acts like the leader on our new energy discoveries. I bet Planey isn't even a landowner, businessman, much less knowlegeable about the Utica Shale.
The Vindy needs to wise up and go to GoMarcellusshale.com which is the authority and larger site than anything else in the Utica. Hell, just this week Forbes and Wallstreet in their articles acknowledged GMS as the authority. Planey has no business speaking for something he has no track record in. It kills me that Youngstown keeps following self proclaimed leaders.

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3cambridge(3109 comments)posted 1 year, 11 months ago

uticashill....can you "educate" us on why frackers like yourself are exempt from clean water and clean air acts?

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4UticaShale(854 comments)posted 1 year, 11 months ago

Cambridge! is dat you my brotha?

Yeah baby, keep that computer fired up! Did you get a smart phone, Kindle or Garmin for Christmas? Maybe a new natural gas sucking furnace for the winter? Dude, keep us frackers drilling bro., suck up more energy so we don't die. Remember as long as you turn on the lights and blog on this site we grow stronger. You need to blog on Vindy much more brotha, suck up somemore juice!

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5ibsteve2u(8 comments)posted 1 year, 11 months ago

I find it interesting that the shale gas interests reveal in the comments that they believe that they have the right to demand that local government be cut entirely out of all things related to the exploitation of shale gas.

It would appear that democracy is subservient to shale gas...at least in some minds. If government itself is to be set aside, then the interests of the people...well, they must be lower than a injection well hole on the shale gas totem pole.

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6UticaShale(854 comments)posted 1 year, 11 months ago

YTown and IBSteve,

Maybe it is because local governments are unqualified to make energy decissions. Just like you two are obviously unqualified to speak intelligently about the new technology of horizontal drilling.

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