- Published: March 2012
- Region: United States
Utica Shale Market Report
- ID: 2407986
- January 2012
- Region: United States
- Warlick International
The Utica is huge, early-stage oil, liquids and gas shale play with activity in Ohio that has great promise, extending under eight northeastern states and into Ontario. By some accounts it may have up to 5.6 billion barrels of oil and liquids and is being compared with the Eagle Ford. Momentum for development is coming from E&P leaders like Chesapeake, Hess, Devon, CONSOL, BP and others.
This report provides a very current summary plus details about recent deals, E&P leaders, metrics and economics that ultimately drive development. Very important also it has up to date drilling forecasts and a sound, businesslike assessment of market potentials for the Utica Shale.
1. Executive Summary
An overall review of the Utica Shale and its current status as one of the newest early-stage wet plays among all US shales today and a big picture of coming development.
2. Recent Deals
Current reporting on deals in the play, such as BP's new $332 million acreage leasing deal in the spring of 2012, others as well in reporting deal trends in the Utica.
3. E & P Leaders
Details about those important E&P companies who drive activity in the play. Most important in the Anadarko Woodford are Devon who is the acknowledged leader, then comes Cimarex Energy, Continental Resources, Marathon, Exxon Mobil and others.
4. Economics & Metrics of the Play
This play is early-stage so any initial economics such as estimated ultimate recoveries and rates-of-return are preliminary, but will be provided along with other descriptive metrics such as well characteristics, drilling and completion costs, leasing data, etc.
5. Drilling Forecasts
As we do in all of our proprietary reports, WarlickEnergy models multi-year drilling forecasts for each specific shale, extremely useful in determining play-wide activity in multiple markets for equipment & energy services required in Utica Shale development. These drilling forecasts are updated in the 4th quarter -- and are the only such forecast available for the Utica Shale.
6. Equipment & Services
A current review of a range of equipment and services required in the Utica with focus on drilling, production and completion. The report will touch on a variety of sub-markets for products and services in this section.
7. Infrastructure & Midstream
This is a wet play so there is need for separation and processing of liquids to include crude oil, produced liquids and of course, natural gas. This section will address equipment and services focused in that space plus an overview of pipeline (or rail) takeaway.
8. Geological Summary
This report would not be complete without a brief explanation of the Utica Shale geology and background of how this large play was formed in time, important to the rationale in overall Utica development.
9. Environmental & Regulatory Issues
The State of Ohio is being careful in its oversight of Utica Shale development, and along with the Environmental Protection Agency and other related entities, it's important to be appraised of the environmental and regulatory requirements. In addition this report will address fluids and water management in overall Utica Shale development.
10. Looking Ahead
A current, businesslike forecast and a look ahead that describes what E&P companies, equipment and service companies and others looking at this play as a potential entry opportunity need to know about the big picture in Utica Shale drilling and development in the next 18-24 months-- as well as the drivers that impact its future.