Ohio Chamber of Commerce February 13, 2018 Richard Simmers, Chief - - PowerPoint PPT Presentation

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Ohio Chamber of Commerce February 13, 2018 Richard Simmers, Chief - - PowerPoint PPT Presentation

Dec 31, 2022 38 likes •248 views

Ohio Chamber of Commerce February 13, 2018 Richard Simmers, Chief Division of Oil and Gas Resources Management Ohio Department of Natural Resources Overview Horizontal Shale Activity 2,748 Total Permits 2,246 Wells Drilled 1,801 Wells

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Ohio Chamber of Commerce February 13, 2018 Richard Simmers, Chief Division of Oil and Gas Resources Management Ohio Department of Natural Resources

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Overview

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Horizontal Permitting Activity

Horizontal Shale Activity

2,748 Total Permits 2,246 Wells Drilled 1,801 Wells Producing

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Source: ODNR Division of Oil & Gas Methodology: Hrz Permit Issue Date 449 665 854 514 282 331

500 1000 1500 2000 2500 3000 3500 2011 2012 2013 2014 2015 2016 2017 Number of Permits

113

Horizontal Well Permits Issued by Year

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Drilling Activity

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Source: ODNR Division of Oil & Gas Methodology: TD Date 201 399 541 370 340 291

500 1000 1500 2000 2500

2011 2012 2013 2014 2015 2016 2017

Drilled Horizontal Wells

31

Cumulative Drilled Horizontal Wells

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Source: ODNR Division of Oil & Gas 10 20 30 40 50 60 70

2013 2014 2015 2016 2017 Number of Horiziontal Rigs

Horizontal Shale Rigs

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Source: ODNR Division of Oil & Gas 10 20 30 40 50 60 70

2013 2014 2015 2016 2017 Number of Horiziontal Rigs

Horizontal Shale Rigs

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Source: U.S. Energy Information Administration

Horizontal Shale Rigs in Ohio

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U.S. Energy Information Administration Spot Prices

Horizontal Shale Rigs in Ohio – WTI Price Comparison

10 20 30 40 50 60 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan - 17 Feb - 17 Mar - 17 17-Apr 17-May 17-Jun 17-Jul 17-Aug 17-Sep 17-Oct

Number of Horizontal Rigs Price per Barrel

WTI Crude Hrz Rigs

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U.S. Energy Information Administration Spot Prices

10 20 30 40 50 60 1 2 3 4 5 6 7

Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17

Number of Horizontal Rigs Dollars per Million BTU

NYMEX Hrz Rigs

Horizontal Shale Rigs in Ohio – NYMEX Price Comparison

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Production Update

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Source: ODNR Division of Oil & Gas Methodology: Qtr of First Production 9 77 311 433 435 302 241 200 400 600 800 1000 1200 1400 1600 1800 2000

2011 2012 2013 2014 2015 2016 2017 Number of Producing Wells

Cumulative Producing Horizontal Wells

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Source: ODNR Division of Oil & Gas

Shale Oil Production

  • 1,000,000

2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000

1st qtr 2013 2nd qtr 2013 3rd qtr 2013 4th qtr 2013 1st qtr 2014 2nd qtr 2014 3rd qtr 2014 4th qtr 2014 1st qtr 2015 2nd qtr 2015 3rd qtr 2015 4th qtr 2015 1st qtr 2016 2nd qtr 2016 3rd qtr 2016 4th qtr 2016 1st qtr 2017 2nd Qtr 2017

Barrels

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Source: ODNR Division of Oil & Gas

  • 50,000,000

100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 350,000,000 400,000,000 450,000,000

1st qtr 2013 2nd qtr 2013 3rd qtr 2013 4th qtr 2013 1st qtr 2014 2nd qtr 2014 3rd qtr 2014 4th qtr 2014 1st qtr 2015 2nd qtr 2015 3rd qtr 2015 4th qtr 2015 1st qtr 2016 2nd qtr 2016 3rd qtr 2016 4th qtr 2016 1st qtr 2017 2nd Qtr 2017 MCF (1,000 FT3)

Shale Natural Gas Production (Billion Cubic Feet)

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U.S. Energy Information Administration Consumption Estimates

Ohio Conventional Wells vs. Horizontal Wells

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U.S. Energy Information Administration Consumption Estimates

  • 200,000,000

400,000,000 600,000,000 800,000,000 1,000,000,000 1,200,000,000 1,400,000,000 1,600,000,000

2011 2012 2013 2014 2015 2016 Total Gas Production Total Consumption

MCF

Ohio Production vs. Ohio Consumption (MCF)

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U.S. Energy Information Administration Map Image

Natural Gas Pipelines

ShaleGasReporter

Construction on natural gas interstate pipelines continued in 2017, as well as regional supply and gathering pipelines

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U.S. Energy Information Administration Map Image

Natural Gas Pipelines and Infrastructure

ShaleGasReporter

  • Construction on natural gas interstate

pipelines continued in 2017, as well as regional supply and gathering pipelines

  • Development continues on natural gas

processing facilities

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Ohio Power Siting Board, updated 2.8.2018

Natural Gas Fired Power Plants

County Project Megawatts Status Lucas Oregon 960 Operational Carroll Carroll 742 Operational Trumbull Lordstown 940 Under Construction Warren Middletown 540 Under Construction Trumbull Trumbull 940 Approved Columbiana Southfield 1105 Approved Guernsey Guernsey 1100 Approved Monroe Hannibal Point 485 Approved Lucas Oregon 2 955 Approved Harrison Harrison 1050 Under Review 8,817 megawatts

Ten natural gas fueled power plants are in development across the state

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