Posted on 09/29/2008 5:54:25 AM PDT by Tolerance Sucks Rocks
The rush to tie up drilling rights in Marcellus shale is ramping up just west of the Interstate 81 corridor, as companies compete to sign leases.
The black sedimentary rock runs from western New York south into West Virginia. It has been promoted as one of the most promising natural gas sources in the United States. Piping the gas through the hills and mountains of Appalachia, however, will not be easy.
New technologies that include horizontal drilling and pumping in water to fracture the rock, have been found to release more gas and make recoveries in shale more economical. Rising natural gas prices have spurred interest in drilling in the shale.
Gas companies are swarming the Hampshire County Clerk's Office in Romney, W.Va. "They're searching land records to see if mineral rights have been sold," said Sharon Link, county clerk. "The leases are on land throughout all of Hampshire County.
"It began last summer, and since then between 50 and 75 leases have been recorded in our office. We don't know how much the gas companies are paying for the leases."
Nonetheless, the scramble to buy mineral rights to drill for gas has not reached the rolling hills of western Frederick County, Va., which also contains seams of Marcellus shale. County Court Clerk Becky Hogan said she has not seen any oil and gas exploration companies recording leases at the courthouse in Winchester.
But interest in exploring for gas in Marcellus shale may slow down, as natural gas prices decline. After soaring from $7 per thousand cubic feet to $13, prices have dropped down to $8.
Copyright News for Business, Inc. Sep 2008
(c) 2008 Quad - State Business Journal. Provided by ProQuest LLC. All rights Reserved.
Ping.
Drill rigs in Appalacia?
To me that sounds tempting, but I've only got 4 more years to retire from my present job, and I'd like to think the field will still be booming along about that time. Then I could doubledip 8^D.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.