Wednesday, January 28, 2015NEW YORK -- Depressed oil prices has caused Hess Corp. to reduce spending in the Utica shale and other plays across the country during 2015, the company announced this week.
"In the Utica, we plan to spend $290 million compared to $500 million last year, as we transition to early development at a measured pace in this price environment and as infrastructure builds out," says Greg Hill, president and chief executive officer.
Hill said that the company's joint venture with Consol Energy will concentrate on the core of the wet gas window in the southeastern portion of Ohio, but the number of rigs operating will be cut in half.
The company intends to operate two rigs this year instead of the four it used in 2014, Hill noted. Hess plans to bring between 25 and 30 wells online this year compared to 39 wells it activated last year, he said.
Hess reduced its overall capital budget to $4.7 billion in 2015 from $5.6 billion last year.
Other oil and gas companies exploring the Utica in eastern Ohio and the Marcellus shale in western Pennsylvania have also announced cutbacks in the face of falling oil prices.
Denver-based Antreo Resources said it would reduce its rig count in the Utica and the Marcellus shale plays to 14 this year from 21 in 2014. However, the company expects productivity to increase this year.
Rex Energy and Range Resources announced earlier it would also reduce spending in the Utica and Marcellus this year.
Published by The Business Journal, Youngstown, Ohio.
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