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Value of Ohio Oil, NatGas Increased Sharply in 2016

The combined value of Ohio’s oil and natural gas production last year increased significantly to more than $4.2 billion, up from $2.97 billion in 2015, according to an annual mineral industries report released last week by the Ohio Department of Natural Resources (ODNR) Division of Geological Survey.

The report, which provides economic information about the state’s extraction industries, showed the increase in value was thanks entirely to natural gas. Driven by the Utica Shale, the state reported that more than 1.4 Tcf was produced in 2016, compared to about 1 Tcf in 2015. The value of natural gas in the state increased 71.4% year/year (y/y) to nearly $3.4 billion.

Appalachian shale producers migrated toward more economic dry gas in 2016 as the commodity downturn wore on and pressured oil prices. Oil production in Ohio fell from 26.9 million bbl in 2015 to about 21.5 million bbl last year. The value of oil, according to the report, fell 14.6% y/y to about $844.7 million.

Among other things, the report also examines coal, limestone, gravel and salt production. Oil and gas influenced the combined value of all fuel and nonfuel minerals produced in Ohio last year, which came in at roughly $5.9 billion.

Ohio coal and industrial minerals production plummeted from 122.2 million tons in 2015 to 119.2 million tons last year. The value of coal was down 28.1% y/y to $541.2 million.

Those directly employed in Ohio’s extraction industries last year remained unchanged from the 2015 estimate of 11,000.

The report was changed last year to exclude the detailed oil and gas portion that was once a part of the analysis. The change was made to eliminate duplicate reporting by the Division of Geological Survey and ODNR’s Division of Oil and Gas Resources, which tracks and publishes drilling and production information. 

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