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Ohio Shale Oil/NatGas Output Climbs in 2Q2017

Ohio’s unconventional oil and natural gas production continued to tick upward in the second quarter, as it has since the end of last year when operators began to shake off the downturn’s rust.

Year/year natural gas production increased about 16% to 388.6 Bcf from 334.4 Bcf in 2Q2016, according to data issued by the Ohio Department of Natural Resources (ODNR). Volumes were also up from the 371.9 Bcf of natural gas reported in 1Q2017. 

While year/year oil production decreased from about 4.9 million bbl to 4 million bbl during the period, operators once again reported a sequential production increase from 3.9 million bbl in 1Q2017.

Last year was marked by declining rig counts, less spending and a dwindling inventory of drilled but uncompleted wells in Ohio as it was across much of the Appalachian Basin. But as operators in the state began to rebound, 1Q2017 saw the first sequential oil production increase since 2015.

At the end of last week, 29 rigs were running in Ohio, compared to 13 at the same time last year. ODNR’s report, released last Friday, lists 1,691 horizontal shale wells, of which 1,659 reported production during the second quarter. That’s up from the year-ago period, when the state listed 1,415 shale wells, of which 1,362 were producing.

The average amount of oil produced by each well in 2Q2017 was 2,438 bbl, while the average amount of natural gas reported was 234.2 MMcf. Ohio law does not require the separate reporting of natural gas liquids or condensate. Oil and gas totals include those volumes.

As of Aug. 26, the state has issued 2,589 Utica Shale permits and 2,104 Utica wells have been drilled. The state also has issued 46 Marcellus Shale permits and 30 Marcellus wells have been drilled, according to ODNR.

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