Welcome to Energy and Capital's weekend edition — our insights in investing, as well as the top stories this week from Energy and Capital and our sister publications.
It's a whole different story when it comes to developing our unconventional shale fields.
One of the growing debates waging in the unconventional oil and gas scene is the subject of hydraulic fracturing. As you know, the process came under scrutiny in New York this year, as opposition mounted over drilling in the city's watershed.
Of course, the issue seems to be nothing more than a publicity stunt.
In fact, drilling in the city's watershed is almost a non-issue. The only company with leases in that area — Chesapeake Energy — has continually said the company isn't interested in drilling there.
Let's be serious, they're not going to ban drilling in the Marcellus shale formation. The U.S. shale basins are one of the few reasons to be bullish on natural gas, as well as one of the best opportunities for investors — especially when the supply glut eases.
Here are some of the latest headlines to cross my desk:
Former President George W. Bush recently praised the technological advancements made in order to develop unconventional natural gas sources across the U.S. Of course, this isn't exactly a shock for Energy and Capital readers... We've been covering the rise of U.S. shale plays since the Barnett started gaining fame back in 2006.
Need more proof that the shale boom hasn't lost any steam? Here's a look at the number of shale rigs operating vs. the U.S. land rig count. Then again, we're not the only ones that recognize the role that shale gas will play in the future.
In another move to increase their shale gas position, Statoil recently shelled out $253 million to Chesapeake for approximately 59,000 net acres in the Marcellus shale formation. Some of you might remember when Statoil purchased 600,000 Marcellus acres from Chesapeake back in 2008.
Last week, I reported on the reasons why the EPA is trying to control by regulating the hydraulic fracturing process. So far, the industry seems unconcerned. The American Petroleum Institute reiterated its position on debate: "... hydraulic fracturing is a safe and well understood technology for producing oil and gas."
Enjoy your weekend,
Keith Kohl
Buck
