North Carolina shale gas exploration will not take off until companies are able to frack and complete oil & gas wells in the state. Current law does not allow for the use of fracking or hydraulic fracturing. The state has only recently garnered oil & gas industry attention. A 2008 USGS study first noted the potential for shale gas resources in the Deep River Basin.
Leasing continues as operators build material positions before going forward with exploration. Chatham and Lee counties have been at the center of leasing to date, with some leasing in Moore County, NC. Be watching for successful exploration wells. It will mean bigger bonus dollars and better royalties.
“North Carolina law does not currently allow the drilling technique known as “hydraulic fracturing” (fracking) used in shale-gas exploration. Therefore, laws must be adopted to allow its use along with regulations to require drillers to act responsibly and to be held accountable for any damage.”
“According to a Penn State study, 1,405 fracking wells were drilled in Pennsylvania in 2010, generating $11.2 billion in gross economic activity, $1.1 billion in state and local taxes, and creating 140,000 jobs. Average pay for these jobs is currently $67,000. The study projected 180,000 jobs by 2012 and 256,000 by 2020, with local tax revenues exceeding $2 billion from shale-gas activity.”
Read the full news release at ThePilot.com