New Players in Ohio's Utica Shale

In characteristically opaque language Chesapeake Energy has announce a $3.4 billion deal. It has begun selling shares in it Utica Shale drilling venture. Simply put, no one oil company can afford to develop this play so portions of the leased land are transferred to the partners for cash. Among the new partners are; Hess, Anadarko Petroleum and even giant Exxon Mobil. What amazes insiders is the price the new players are paying to participate. In some cases it reported to be as high as $15,000 per acre! The reason for this high flying optimism are two fold. The initial finds have produced more oil than gas. Presently natural gas prices are in a slump as demand tries to catch an almost boundless supply while oil prices are buoyant, a fact known to anyone who has filled his gas tank lately. Another factor driving optimism is the belief that political and environmental opposition as seen in New York and Pennsylvania won't build in Ohio. One would hope that Ohioans would look west to North Dakota and not to New York where fracking is banned.