Analyst Says Utica Shale Production Numbers Still Show Promise for the Play

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Analyst Sandy Fielden of RBN Energy has looked at the official 2012 Utica shale production numbers, and he doesn't see the need for the "bust" talk that has prevailed since the numbers were released last week.

From Platts:
Those figures lead to two basic conclusions, according to Fielden: the Utica was not producing anywhere near the early days of the Bakken or Eagle Ford; and the oil to gas ratio showed it was going to be more of a natural gas play than anticipated. Given the relative price strength between natural gas and oil, that’s not good news for the state of Ohio, which is looking toward a higher severance tax to help fund an income tax cut.
But Fielden lays out several points to make his point that things might not be that bad. First of all, the drilling that has gone on so far is mostly in the Point Pleasant formation, and while it isn’t proving itself as an oil-rich play, it is producing a decent flow of gas liquids. While that is not as lucrative as an oil-rich play like the Bakken, it’s a lot better than the gas-only flows out of a place like the Haynesville Shale.  
Read more of Fielden's analysis by clicking here.  Are you encouraged by his take on the Utica shale's production?

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