And I saw the incredible innovations in drilling technology that revolutionized the industry… Technology like directional drilling and hydraulic fracturing, both of which opened up previously unknown sources of oil in this country. In 2006, one of those previously unknown sources was the Marcellus Shale in the Appalachian Basin. Today, we know the Marcellus is the largest source of natural gas in the U.S. But at the time, no one knew if the Marcellus would produce or become a reliable, economic source of income. It was a risky bet, but that didn’t stop the landmen. I met up with Marty – one of my good friends fromOklahoma City – at Pittsburgh’s PNC Park in the summer of 2006 to catch a Pirates ballgame. I’d moved to Pittsburgh the previous year to be the regional landman for energy firm EOG Resources (EOG). Marty had moved to Charleston, West Virginia to take over the land department for Chesapeake Energy (CHK) after it acquired Columbia Natural Gas. Over a couple hot dogs slathered in sauerkraut, we marveled at how the sleepy Appalachian Basin had exploded with activity. Pittsburgh was booming. During the conversation, Marty told me about the time that he had first talked with Chesapeake Energy CEO Aubrey McClendon about the Marcellus Shale. Take Marty, for instance…
Marty laid out a map during a strategy meeting in early 2005 and said, “Aubrey, this is the Marcellus Shale. And it’s the next big resource play.”
Aubrey looked at the map and asked, “What counties are those, Marty?”
“Those aren’t counties,” Marty replied. “Those are states. That’s New York. That’s Pennsylvania. That’s Ohio. And that’s West Virginia.”
“ This is huge! ” The size of the resource he was looking at suddenly blew up 100-fold before Aubrey’s eyes. “We need to be in this.”
78
Made with FlippingBook - Online Brochure Maker