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Ohio Utica Shale

Bain Capital's Pagliuca supports U.S. shale boom

By Bob Downing Published: June 28, 2013

From Bloomberg News on Thursday:

By Devin Banerjee

Bain Capital LLC’s Stephen Pagliuca said headwinds to the U.S. economy such as rising interest rates and the government’s debt burden will be partially offset by cheap oil and gas from the country’s shale reservoirs.

"The salvation of the United States is the big oil and gas boom going on right now," Pagliuca, a managing director at Boston-based Bain, said today at a conference in New York sponsored by the nonprofit organization Youth Inc. "This shale boom will last a long time. We can be a net exporter by 2020."

Shale oil and gas has led to a boom in energy production, pushed natural gas prices lower, and by some estimates may allow the U.S. to meet its energy needs with domestic resources for the first time in decades. To tap the resources, millions of gallons of water are mixed with chemicals and sand and shot underground to break apart rock and free trapped gas or oil. Critics have said the process, known as fracking, endangers water supplies, while the industry maintains that no confirmed case of such contamination has been demonstrated scientifically.

Pagliuca, who helped build Boston-based Bain into a private-equity firm with $70 billion in assets under management, said the largest challenges to the U.S. economic recovery are the effects of slowing stimulus and swelling national debt. The government’s actions to address the deficit have not been swift enough, he said.

’Sipping Ouzos’

"If you look at politicians, they’ve only reacted to crisis," said Pagliuca, a co-owner of the Boston Celtics. "In Greece everything was fine and people were at the beach and they were sipping ouzos until everything fell apart. And everything’s going to be fine here until it isn’t fine."

Pagliuca said he sees opportunities for private-equity deals in the U.S. as health care is reformed and technology companies seek to lower the cost of medical care. He also pointed to opportunities in China.

"I don’t see a dramatic crash in the future," Pagliuca said. "You still have a population that needs to lift up, and you have growth rates of 7 to 8 percent."

Bain last year raised its second fund dedicated to Asia, closing on $2.3 billion. The firm’s previous Asia fund, raised in 2007 with $1 billion, had a 4.3 percent net internal rate of return as of Sept. 30, according to data from California State Teachers’ Retirement System, an investor in the pool.



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Utica and Marcellus shale web sites

Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

Ohio State University Extension.

Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

Energy In Depth, a trade group.

Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.

Rig Count Interactive Map by Baker Hughes, an energy services company.

Shale Sheet Fracking, a Youngstown Vindicator blog.

National Geographic's The Great Shale Rush.

The Ohio Environmental Council, a statewide eco-group based in Columbus.

Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.

Concerned Citizens of Medina County, a grass-roots group.

No Frack Ohio, a Columbus-based grass-roots group.

Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.