• Unconventional Oil & Gas

    Shale plays first come to mind when one considers unconventional resources. These unconventional resource plays may yield natural gas, gas condensates, and crude oil. Some of the more noteworthy shale plays in North America include the Bakken, Eagle Ford, Marcellus, Fayetteville, Woodford, Niobrara, Haynesville, Horn River, and Utica formations. Tight gas, coalbed methane, oil sands, and heavy oil are non-shale unconventional resources.


    Eagle Ford | Marcellus | Cline | Permian | Utica | Bakken | Woodbine & Eaglebine

    Utica Shale

    Utica Shale Description ImageThe Utica shale formation is one of the newest natural gas discoveries in North America. It is located in New York state and the Canadian province of Quebec, along the St. Lawrence River Valley. Some geologists have suggested the gas-bearing formation extends as far south as Pennsylvania. The other major shale formation in this area is the better-known Marcellus shale.

    Estimates of natural gas deposits in the formation range from a low of about 2 trillion cubic feet (tcf) to a high of 60 to 70 tcf. At this time, most companies active in the Utica shale are drilling exploratory wells on the Canadian side of the border because the state of New York has been reluctant to grant drilling permits to date. Some production rates have tested up to 1 million cubic feet per day.

    Utica Shale Map

    Utica Shale News

    DTE Energy, Enbridge, Spectra to develop pipeline connecting Utica Shale gas to US Midwest, Ontario

    Sep 4, 2012

    DTE Energy, Enbridge Inc., and Spectra Energy Corp. have executed a Memorandum of Understanding to jointly develop the NEXUS Gas Transmission system to move growing supplies of Ohio Utica shale gas to markets in the US Midwest, including Ohio and Michigan, and Ontario, Canada.

    Transportation, processing infrastructure critical to Utica Shale growth

    Aug 1, 2012

    With natural gas production in the Utica Shale predicted to reach at least 1.2 bcf/d by the end of 2014 and crude oil production expected to hit 155 Mb/d or higher by 2016, transportation constraints and competition for processing capacity take center stage in the Northeast.

    Drop in NGL pricing pushes 2Q12 deals further towards midstream sector

    Jul 26, 2012

    While mergers and acquisitions deal value in the US oil and gas industry over the past two years had primarily been driven by shale transactions in the upstream sector, deals in the second quarter of 2012 evolved toward midstream deals, particularly gathering and processing targets, according to PwC US.

    Smart Sand, Canadian Pacific partner to supply frac sand by rail

    Jul 18, 2012

    Smart Sand and Canadian Pacific Railway Ltd. have partnered to supply and ship premium, Northern White frac sand to the unconventional oil and gas industry in key North America producing regions.

    Caiman secures $800M in equity commitments for Utica Shale infrastructure

    Jul 10, 2012

    Caiman Energy II LLC has secured $800 million in equity commitments for the development of midstream infrastructure in Ohio and Pennsylvania’s Utica Shale.

    Lower than expected oil, gas mix may shift Ohio Utica focus westward

    Apr 3, 2012

    Recent production data for Utica Shale wells drilled by Chesapeake Energy may be economic, but the lower than expected condensate/oil mix in the eastern Ohio wells may shift the industry focus westward, noted Global Hunter Securities.

    BP bolsters US unconventional resources presence with Ohio Utica buy-in

    Mar 27, 2012

    BP (NYSE: BP) has entered the Utica Shale through an agreement to lease roughly 84,000 acres in Trumbull County, Ohio, the company said March 27.

    ArcLight Capital Partners invests $100M in Magnum Hunter Resources’ midstream segment

    Mar 21, 2012

    Magnum Hunter Resources Corp. has agreed to sell 28% of its midstream segment, Eureka Hunter Holdings LLC, to an affiliate of energy investment firm ArcLight Capital Partners LLC for $100 million.

    Chesapeake, M3 Midstream, EV Energy Partners to build midstream complex for Ohio Utica production

    Mar 14, 2012

    On March 13, Chesapeake Energy Corp. announced the execution of definitive agreements to build the largest integrated midstream service complex in eastern Ohio.

    Gulfport Energy, MarkWest to develop Utica infrastructure

    Mar 7, 2012

    MarkWest Utica EMG LLC, a joint venture between MarkWest Energy Partners LP and The Energy and Minerals Group (EMG), have executed a letter of intent with Oklahoma City-based Gulfport Energy Corp. to provide gathering, processing, fractionation, and marketing services in the liquids-rich corridor of the Utica.

    Magnum Hunter Resources adds Ohio Utica acreage in expanding oil window

    Feb 17, 2012

    Triad Hunter LLC, a wholly-owned subsidiary of Houston-based independent energy company Magnum Hunter Resources Corp., has closed on the acquisition of leasehold mineral interests located predominately in Noble County, Ohio from an undisclosed seller for a total purchase price of $24.8 million.

    JV agreements played key role in 2011 E&P funding

    Feb 8, 2012

    Following a rise in popularity in the oil and gas upstream sector in 2010, joint venture agreements played a dominant role as a source of low cost funding in 2011—with unconventional resources drawing the most attention, noted analyst at Stifel Nicolaus.

    JV streak continues as Chesapeake completes US$2.32B Utica Shale deal with Total

    Jan 4, 2012

    Building on its existing relationship with French oil major Total, Chesapeake Energy Corp. completed yet another joint venture to continue its progress developing unconventional resources—this time in the Ohio portion of the Utica Shale play.

    Ohio Department of Natural Resources: Utica may be one of the lowest cost shale plays

    Dec 13, 2011

    Initial drilling in the Utica is still centered around eastern Ohio, in the wet gas window, but activity could push westward as the oily window is better defined, noted Christopher Perry, the Energy Group Supervisor of the Ohio Department of Natural Resources’ Division of Geological Survey in a conference call hosted by Stifel Nicolaus last week.

    Slated for Utica drilling, Chesapeake closes additional $750M in funding

    Dec 5, 2011

    Chesapeake Energy Corp. has closed $1.25 billion of perpetual preferred shares of its wholly owned, unrestricted subsidiary, CHK Utica LLC.

    ConocoPhillips CEO on shale boom: We've only scratched the surface

    Technology innovation has expanded the world’s energy resource base and the oil and gas industry will continue to working to supply that growth, said ConocoPhillips (NYSE:COP) chairman and CEO Ryan Lance.

    ©2014 Michael Stravato. Provided courtesy of the James A. Baker III Institute for Public Policy, Rice University.

    Read the full article here. 

    US tight oil production averaged 3.22 day MMbbl/d in 4Q13, according to US EIA estimates. This level was enough to push overall crude oil production in the US to an average of 7.84 MMbbl/d, more than 10% of total world production, up from 9% in the fourth quarter of 2012. Read more here

    Can the shale gas rBart Willigers, Palantir Solutions Ltd. evolution currently taking place in the US be repeated elsewhere? Although significant volumes of unconventional gas deposits are present in Poland, France, Germany, Hungary, Sweden, Turkey, and the UK, shale gas developments are running many years behind their counterparts in the US. Skeptics have pointed out that differences in geology, taxes, public acceptance, environmental regulations and other factors in Europe vs. the US make for a tougher environment in which to develop unconventional resources. 

    Read the article by Bart J. A. Willigers of Palantir Solutions Ltd. here

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