Daily Court Reporter - News Shale gas, oil production in Ohio up in third quarter
Shale gas, oil production in Ohio up in third quarter
BRANDON KLEIN, Daily Reporter Staff Writer
Ohio's horizontal shale region saw an increase in oil production and natural gas in the third quarter this year.
Horizontal wells in the state's Utica/Point Pleasant area, mainly in the eastern portion of the state, produced nearly 5.5 million barrels of oil and nearly 605.8 billion cubic feet of natural gas in the third quarter this year compared with nearly 4.2 million barrels of oil and nearly 460.85 billion cubic feet of gas in the third quarter of 2017, according to data released by the Ohio Department of Natural Resources. (Note: a barrel of oil is equal to 42 U.S. gallons and that gas reporting totals include natural gas liquids).
That's a nearly 32-percent percent increase for both shale gas and oil production between the two quarters.
The ODNR report lists 2,242 horizontal shale wells with 2,002 reporting oil and natural gas production during the quarter. The average amount of oil produced was 2,523 barrels.
The average amount of gas produced was nearly 275.58 million cubic feet. The average number of production days was 84.
While oil production for the first three quarters this year increased 13 percent more than in 2017, natural gas production increased by 38 percent.
For the first three quarters this year, Ohio's drilling companies have produced nearly 1.7 trillion cubic feet of natural gas compared with nearly 1.2 billion produced for the same period in 2017.
Ohio also had nearly 13.98 million barrels of oil produced for the first three quarters this year compared with nearly 12.35 million for the same period last year.
Oil production appears to be returning to 2016 levels when it had nearly 5.5 million barrels in 2016, 24 percent more than in 2015. Natural gas spiked 80 percent in the first quarter of 2016 to 329.53 billion cubic feet.
Additionally, oil production peaked in 2015 with more than 23 million barrels before it decreased to 29 percent last year.
That was after a barrel of crude oil started to decrease from more than a $100 a barrel during the summer of 2014 with prices plunging by about 50 percent by the end of the year, according to data from the U.S. Energy Information Administration.
Since then, oil prices have fallen to as low as $30 per barrel and recently as high as more than $70. Prices are hovering between $45 to $55 per barrel earlier this month, according to online oil price trackers.
The Utica shale play is more than 7,000 feet below ground and underlies portions of Ohio, Pennsylvania, West Virginia and New York. Since drilling in Ohio's shale portion began in 2011, the state has issued more than 2,900 permits for horizontal drilling with more than 83 percent of them drilled.
There is no drilling activity within central Ohio's 10-county metropolitan statistical area. Ohio counties where drilling takes place include Belmont, Jefferson, Mahoning and Washington.
Date Published: January 21, 2019