{"id":24161,"date":"2011-09-29T08:20:48","date_gmt":"2011-09-29T12:20:48","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2011\/09\/29\/utica-shale-could-spur-ma-and-ohio-steel\/"},"modified":"2011-09-29T08:20:48","modified_gmt":"2011-09-29T12:20:48","slug":"utica-shale-could-spur-ma-and-ohio-steel","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/09\/29\/utica-shale-could-spur-ma-and-ohio-steel\/","title":{"rendered":"Utica Shale Could Spur M&A and Ohio Steel"},"content":{"rendered":"

Utica Shale Could Spur M&A and Ohio Steel <\/a><\/p>\n

by Justin Dove<\/a>, Investment U<\/em> Research
\nThursday, September 29, 2011<\/p>\n

The Ohio Oil and Gas Energy Education Program<\/a> (OOGEEP) released a very bullish projection this month on the economic impact of Utica shale activity in the region.<\/p>\n

The report predicted that Utica shale production could generate 204,500 jobs in just four years and infuse billions into the regional economy.<\/p>\n

It follows claims by Chesapeake Energy<\/strong> (NYSE: CHK<\/a>) that the Utica is “analogous” to the Eagle Ford. It also claimed that its holdings in the region could generate up to $20 billion for shareholders – greater than its entire current market cap.<\/p>\n

“The play reminded us of the Eagle Ford shale, which is distinctive because it’s a three-phase play of dry gas, wet gas and liquids,” Chesapeake CEO Aubrey McClendon said.<\/p>\n

David Fessler recently explained the importance of the liquids-rich shale plays<\/a> right now, and eastern Ohio is certainly shaping up to fit that bill.<\/p>\n

\"Utica<\/a><\/p>\n

(Source: Rigzone)<\/p>\n<\/div>\n

Utica Shale Is Attracting Big Players<\/strong><\/p>\n

Chesapeake Energy isn’t the only company bullish on the prospects of the Utica. EV Energy Partners<\/strong> (Nasdaq: EVEP<\/a>) Chairman and CEO John Walker feels the presence of more than just shale will attract petroleum companies and help bring business to oil refineries in the region owned by Marathon Petroleum Corp.<\/strong> (NYSE: MPC<\/a>).<\/p>\n

“We hope to drown the Marathon refineries in Ohio [with Utica oil],” Walker said.<\/p>\n

Chesapeake, which holds the lion’s share of acreage around Utica, is also said to be looking for a foreign partner to bring in for exportation and de-risking purposes.<\/p>\n