Ohio permits up as drilling rigs take advantage of Utica Shale - Fed

10 October 2012 23:36  [Source: ICIS news]

HOUSTON (ICIS)--More drilling rigs were being moved into Ohio as producers took advantage of the higher priced wet gas in the Utica shale, the Federal Reserve (Fed) said on Wednesday.

Wet gas is generally considered natural gas that includes ethane, propane and other chemical feedstocks.

Te Fed’s monthly Biege Book report said 375 permits for horizontal shale gas wells have been issued in Ohio to date.

Thirty wells were producing, the report said, and 50 are expected to be in production by the end of the year.

The report followed the US Geological Survey’s first assessment of the Utica Shale, which gave a mean estimate of 38 trillion cubic feet (tcf) of technically recoverable natural gas, based on a range of 21 tcf-61 tcf.

In other districts, the Beige Book reported that natural gas prices remained low in Dallas and Kansas City, while Atlanta continued to experience downward price pressures.

However, several Kansas City contacts anticipated a slight increase in prices as a result of lower levels of exploration and winter supply concerns, the report said.

By: Tracy Dang
+1 713 525 2653

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