Jay
09-09-2008, 02:44 PM
MARIETTA — New drilling techniques have suddenly made untapped natural gas deposits in the region viable and valuable, leading to a sort of land rush by natural gas companies and speculators who are trying to lock up drilling rights quickly and cheaply.
The frenzy is over gas being recovered from Marcellus shale, a 6,000-foot-deep rock formation believed to hold more than 50 trillion cubic feet of recoverable gas. The shale formation runs from western Pennsylvania through West Virginia and into parts of Ohio and Indiana, said Tom Stewart, executive vice president of the Ohio Oil and Gas Association.
“This is gas that we’ve always known was there, but until recently we haven’t had the technology to tap into it with much success,” Stewart said.
Some drilling companies are now able to reach deeper to reach these untapped sources. What is more exciting is that some are able to drill vertical shafts at those depths that increase production, Stewart said.
As a result, there is increased competition between companies to secure drilling rights. Most of the activity right now is in western Pennsylvania and in some nearby West Virginia counties, Stewart said.
The rush is starting to stretch into southeast Ohio, particularly Morgan County, and there is some concern about the tactics being used to acquire the gas. According to The Associated Press, there are stories of fast-talking industry representatives using scare tactics to strong-arm landowners into signing low-ball leases.
Stewart said it is no crime for companies to want to secure drilling rights for as little as possible; after all, there is substantial risk and cost involved in gas recovery.
“I am concerned about these reports of scare tactics and those sorts of things,” Stewart said. “Before anyone signs anything they should always consult their attorney.”
The frenzy is over gas being recovered from Marcellus shale, a 6,000-foot-deep rock formation believed to hold more than 50 trillion cubic feet of recoverable gas. The shale formation runs from western Pennsylvania through West Virginia and into parts of Ohio and Indiana, said Tom Stewart, executive vice president of the Ohio Oil and Gas Association.
“This is gas that we’ve always known was there, but until recently we haven’t had the technology to tap into it with much success,” Stewart said.
Some drilling companies are now able to reach deeper to reach these untapped sources. What is more exciting is that some are able to drill vertical shafts at those depths that increase production, Stewart said.
As a result, there is increased competition between companies to secure drilling rights. Most of the activity right now is in western Pennsylvania and in some nearby West Virginia counties, Stewart said.
The rush is starting to stretch into southeast Ohio, particularly Morgan County, and there is some concern about the tactics being used to acquire the gas. According to The Associated Press, there are stories of fast-talking industry representatives using scare tactics to strong-arm landowners into signing low-ball leases.
Stewart said it is no crime for companies to want to secure drilling rights for as little as possible; after all, there is substantial risk and cost involved in gas recovery.
“I am concerned about these reports of scare tactics and those sorts of things,” Stewart said. “Before anyone signs anything they should always consult their attorney.”