Ohio’s natural gas production nearly doubled from 2012 to 2013 because of increasing activity in the Utica shale and continued development of midstream infrastructure. The announcement came today at the “State of the Play” event at Stark State College in Canton, Ohio.
The Ohio Department of Natural Resources (ODNR) released data for 352 horizontal shale wells that reported production in 2013. The wells drilled in the Utica and Marcellus shale produced 3.6 million barrels of oil and 100 billion cubic feet (Bcf) of gas. On average, Ohio’s oil and gas production increased approximately 65 percent quarter to quarter from first quarter 2013 to first quarter 2014.
“Ohio’s oil and gas industry is growing and moving our state toward energy independence,” said ODNR director James Zehringer. “At the same time, we have updated our laws and increased our staff to provide Ohioans the proper protections as the industry continues to grow.”
ODNR projects all oil and gas wells in Ohio produced 8 million barrels of oil and 171 Bcf of gas in 2013. Compared to 2012, Ohio’s total oil production increased by 62 percent and natural gas production increased by 97 percent. The percentage increase in natural gas production is the largest in Ohio history, and the total production is the fourth highest annual total in state history. ODNR also released production data for the first quarter of 2014. A total of 418 wells reported production of 1.9 million barrels of oil and 67 billion cubic feet of gas.
The production growth depends heavily on the development of the midstream infrastructure needed to transfer the resources to market. In a little more than 24 months, a new industry developed, including 11 processing facilities and miles of new pipelines. Companies have spent or have committed more than $6 billion on midstream infrastructure.
“Companies are investing billions of dollars and creating jobs for Ohioans, proving the value and importance of the Utica shale play,” said David Mustine, senior managing director at JobsOhio.
Ohio’s regulatory agencies, including the Ohio Environmental Protection Agency, Ohio Department of Commerce and ODNR have taken steps to improve their permitting and inspection processes. The agencies have made concerted efforts to implement regulations and rules that are clear, concise and protect Ohioans and the environment.