The years 2014 and 2015 are expected to be big years for the Utica Shale Oil and Gas Project, particularly for the eastern Ohio state region. Though once thought to be a small amount of natural gas squeezed deep beneath the earth’s surface, some geologists and other scientists are now estimating this reserve might actually be the most valuable in North America. The United States Geological Survey now estimates about 38 trillion cubic feet of natural gas, about 940 million barrels of oil, and 208 million barrels of natural gas liquids are “recoverable” from this Utica Shale reserve.
Great Returns Possible for Oil and Gas Funding
Since the initial exploration period began over three years ago, permits have been issued for more than one thousand horizontal wells to be used in the relatively new process of hydraulic fracking. Instead of just drilling down for oil and gas as has typically done, Geology.com explains that fracking involves horizontal drilling and the pumping in of liquids to loosen and ultimately procure oil and gas from shale or rock formations. It is a complex process requiring more oil and gas funding, equipment and manpower than typical drilling projects.
Some Say Costs Could Go Down for Financing Oil and Gas Projects
Yet as these oil producers and drillers gain expertise and more first-hand knowledge about what works and what doesn’t regarding the fracking process, Oil and gas financing will more than likely become less expensive. Fewer workers will be needed, processes will become more efficient and there will be less resistance by local residents and government entities regarding fracking. Securing loans and alternatives such as oil and gas factoring remains essential for future and on-going fracking projects. Oil and gas project financing could prove to be very lucrative for investors.
Local residents directly impacted by the drilling could also see a considerable payday. The Ohio Oil and Gas Energy Education Program recently reported that locals could receive more than $1.6 billion in royalty payments between 2011 and 2015. Financing projects for new exploration in the future based on this previous return is estimated to be about $14 billion should those reinvestments occur. Though oil and gas funding requires considerable upfront investment, the payoffs for providing oil and g financing could be exponential to investors.