October 26, 2016

Natural Gas Production in Ohio on the Rise

Lisbon Morning Journal recently reported on optimism for the production of natural gas in Ohio. Mike Chadsey, director of public relations for the Ohio Oil and Gas Association, spoke to the Columbiana County Port Authority during a meeting and illustrated several market factors that point to a resurgence in the sector. According to Chadsey, as gas prices increase, so will drilling development in the county. As the article relates:

[Columbiana County] was among the first in Ohio to experience a leasing boom in 2010 from companies wanting to drill for oil and natural gas in the region’s Utica shale reserves. Leasing activity continued until about 2013, followed by development, but all of that began to slow considerably after the increased supply resulted in a sharp decline in oil and gas prices,

Additionally, increased demand has led developers to focus on “dry” natural gas, which is in greater supply in the region:

Another factor beyond the county’s control is its geology. Natural gas is divided into two categories: Dry gas, for heating homes and generating electricity, and wet gas, which can be converted for use in producing plastic and plastic-related products. Most of the county has wet gas reserves, and due to lower prices and other factors developers have focused their drilling efforts on counties with higher concentrations of dry gas, at least for now.

As the article concludes, the completion of midstream infrastructure like the Rover Pipeline will lead to increased production activity:

Once the major pipelines currently in development for the area receive final approval and become a reality, drilling activity is expected to increase because companies will have a direct line to transport product to new markets.

CEPI is always encouraged to see Coalition members like Mr. Chadsey publicly speaking to the importance of natural gas and its production in Ohio. As demonstrated by his remarks, the future for the industry in Ohio is bright – and the construction of projects like the Rover Pipeline will ensure producers’ ongoing success through facilitating their ability to transport resources to market efficiently and safely.