US Marathon refines first crude from Ohio’s Utica shale basin

01 December 2011 16:27  [Source: ICIS news]

HOUSTON (ICIS)--US-based refiner Marathon Petroleum processed its first batch of crude oil from the developing Utica shale basin in Ohio, a company spokesman said on Thursday.

Marathon owns the 78,000 bbl/day Canton refinery in Ohio. Spokesman Shane Pochard would not provide the volume of crude or who sold the crude to Marathon.

Chesapeake Energy was the first producer to drill in the Utica shale, anticipating eight rigs by the end of the year. Other companies have since began production as well.

The Utica shale play is in Ohio, just east of the Marcellus shale basin. The Utica basin has rich gas, dry gas and crude oil production regions, according to Chesapeake.

Infrastructure to move crude oil or natural gas produced in Ohio is not in place yet to take production from the Utica shale to refineries or fractionators without trucking, which is expensive, analysts said.

Since Marathon's refinery is in Ohio, it has cheaper shipping costs, giving it access to the crude.

By: Sheena Martin
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly