Chesapeake Barnett Shale Drill in Fort Worth was a boon to the people of the Texas suburb. Indeed, it was reported that oil drilling really changed the look and life of the Fort Worth people. While major cities consist of tall buildings and plush homes in the surrounding environs, Chesapeake has oil drills running and revving. There are a few active wells still with significant economic value. Drilling began in Fort Worth sometime around 2001. People have come to be enlightened about the energy industry and how the oil industry operates. In any case, the learning is by default because the wells are found in the people’s backyards.
Resistance and the Reasoning
Of course the Fort Worth drilling ventures did not happen without a fight. The resistance is informed by the fact that over time, reality dawned on the residents of this Texan Suburb that the riches from the oil exploration will come with a cost. One of the bones of contention was the fact that Fort Worth had been naturally endowed scenery with beauty that struck you as soon as you hit the suburban roads. Traditionally, Fort Worth has enjoyed lots of hikers, riders, bikers, walkers and the lot. All these natural scenery enthusiasts loved their Fort Worth as it was before the discovery of the riches. So they have tried to fight some of the threats but, obviously and evidently, there is conflicting interest. There have been many conflicts regarding the drilling. Yet, the bottom line is that oil drills in Fort Worth remain the talk of the town. The wells mean that a good amount of the natural scenery, the trees, and the green expanses had to go. You cannot have your cake and eat it.
The Will of the People
The outcry by the Fort Worth people yielded fruit when Chesapeake agreed to trim down the size of its drilling area to half what it had originally intended. Environmental conflicts suffice when it comes to oil exploration; and Chesapeake was not the first. The oil prospects and gains that the company had forecasted from its feasibility studies were bound to be altered a great deal. Indeed, the area that was given up for environmental preservation is still fenced out with a black chain link. The activists and environment protection groups scored highly. It was a major lesson to both sides of the conflict. The heated battles about drilling in Fort Worth were informed by history. There was evidence everywhere that earlier natural resources exploration had abused the environment. Yet it seems the compromise by Chesapeake was a precursor to later business decisions in Fort Worth.
The Unexpected Turn of Events
Sometime in August 2016, Chesapeake Energy decided to move a huge chunk of its land to a Dallas Company. The move was supported by a private equity facilitator. There is no pecuniary gain in the land transfer to Saddle Barnett Resources.
Chesapeake argues that its decision was appropriate if it is to realize new business avenues in the oil industry. Chesapeake hopes to save about $200 to $300 million every year as operating income gain. The firm also aims to dispose off up to $1.9 billion of midstream and downstream obligations.
The future of Chesapeake Barnet Shale Drill in Fort Worth Texas hangs in the balance following these developments. It is part of the 2, 800 wells that Chesapeake has been running. The company first entered the Barnett in 2004.
Chesapeake is reported to have agreed to pay its partners an amount in the range of $334 million in order to exit the pipeline deal to ship the Barnet shale gas. On its part, Saddle Barnet will part with up to $420 million as payments to Williams in order to cancel the arrangement. The deal is in its final stage and it is hoped to be closed by the end of this third quarter of the year.