If you find this page useful and would like to be notified of changes made to this page, start by inputting your email below.
powered by ChangeDetection
(→History) |
(→Great Shale Gas Rush) |
||
| Line 25: | Line 25: | ||
==Great Shale Gas Rush== | ==Great Shale Gas Rush== | ||
| − | In 1951, the process of [[hydraulic fracturing]] was introduced in Ohio to extract oil and gas.[http://www.pe.tamu.edu/wattenbarger/public_html/Selected_papers/--Shale%20Gas/SPE14503.pdf "Technically Recoverable Devonian Shale Gas in Ohio, West Virginia, and Kentucky"], Society of Petroleum Engineers, Retrieved 19 Nov 2009.</ref> Part of the Devonian Shale is the [[Marcellus Shale]], which alone is estimated to hold between 168 trillion and 516 trillion cubic feet of natural gas.<ref>[http://www.cornellsun.com/section/news/content/2009/11/11/ithacans-weigh-pros-and-cons-large-scale-drilling-project "Ithacans Weigh Pros and Cons Of Large-Scale Drilling Project"], The Cornell Daily Sun, Retrieved 19 Nov 2009.</ref> Recent technological advances have made the recovery of these reserves possible, and the state has experienced a boom in drilling.<ref>[http://www.wcpn.org/index.php/WCPN/news/11269/ "Gas Wells Proliferate in Northeast Ohio"], WCPN, Retrieved 19 Nov 2009.</ref> It is estimated that {{convert|423|Goilbbl}} of oil are present in the Devonian-Mississippi Shale, with 98% of the near-surface mineable resources located in Ohio, Kentucky, Indiana, and Tennessee.<ref>[http://geology.com/usgs/oil-shale/united-states-oil-shale.shtml "United States Oil-Shale Deposits"], Geology, Retrieved 19 Nov 2009.</ref> | + | In 1951, the process of [[hydraulic fracturing]] was introduced in Ohio to extract oil and gas.<ref>[http://www.pe.tamu.edu/wattenbarger/public_html/Selected_papers/--Shale%20Gas/SPE14503.pdf "Technically Recoverable Devonian Shale Gas in Ohio, West Virginia, and Kentucky"], Society of Petroleum Engineers, Retrieved 19 Nov 2009.</ref> Part of the Devonian Shale is the [[Marcellus Shale]], which alone is estimated to hold between 168 trillion and 516 trillion cubic feet of natural gas.<ref>[http://www.cornellsun.com/section/news/content/2009/11/11/ithacans-weigh-pros-and-cons-large-scale-drilling-project "Ithacans Weigh Pros and Cons Of Large-Scale Drilling Project"], The Cornell Daily Sun, Retrieved 19 Nov 2009.</ref> Recent technological advances have made the recovery of these reserves possible, and the state has experienced a boom in drilling.<ref>[http://www.wcpn.org/index.php/WCPN/news/11269/ "Gas Wells Proliferate in Northeast Ohio"], WCPN, Retrieved 19 Nov 2009.</ref> It is estimated that {{convert|423|Goilbbl}} of oil are present in the Devonian-Mississippi Shale, with 98% of the near-surface mineable resources located in Ohio, Kentucky, Indiana, and Tennessee.<ref>[http://geology.com/usgs/oil-shale/united-states-oil-shale.shtml "United States Oil-Shale Deposits"], Geology, Retrieved 19 Nov 2009.</ref> |
By March 2010, [[The Intelligencer & Wheeling News Register|The Intelligencer]], based in neighboring [[Wheeling, West Virginia]], had declared that a "gas rush" was occurring with the Marcellus Shale in the area and that property was "hot".<ref>[http://www.news-register.net/page/content.detail/id/535285.html?nav=515 "The Gas Rush Is On"], ''The Intelligencer'', Retrieved 8 Mar 2010.</ref> May saw the $4.7 billion acquisition by [[Royal Dutch Shell]] of East Resources's drilling property in neighboring states.<ref>[http://www.pittsburghlive.com/x/pittsburghtrib/business/s_683572.html "Royal Dutch Shell buys Marshall gas driller East Resources Inc. for $4.7B"], ''Pittsburgh Tribune''. Rick Stouffer. 29 May 2010. Retrieved 25 June 2010.</ref>Intense leasing activity was reported in eastern Ohio in September,<ref>[http://www.istockanalyst.com/article/viewiStockNews/articleid/4523136 Drillers have high oil, gas hopes for Ohio shale]</ref> including Gastar Exploration and [[South Korea]]-based Atinum Partners citing Ohio acreage in a $70 million deal.<ref>[http://online.wsj.com/article/BT-CO-20100922-703547.html Gastar Enters JV With Korean Firm To Develop Marcellus Assets]</ref> [[Pennsylvania]]-based [[CONSOL Energy]] began drilling [[Belmont County, Ohio|Belmont County]],<ref>[http://pr-canada.net/index.php?option=com_content&task=view&id=277747&Itemid=58 CONSOL Energy Announces Quarterly]</ref> while [[Anschutz Exploration Corporation]] announced that month it had sold {{convert|500000|acre|km2}} of its oil and natural gas fields, including in Ohio, for $3 billion.<ref>[http://www.energytribune.com/articles.cfm/5496/Anschutz-Likely-Makes-Billions-On-Marcellus-Shale-Sale Anschutz Likely Makes Billions On Marcellus Shale Sale]</ref><ref>[http://www.denverpost.com/business/ci_16401450 Anschutz Exploration makes $3 billion shale oil sale]</ref>By October, ''[[National Geographic Society|National Geographic]]'' had officially coined the boom as the "[[Great Shale Gas Rush]]",<ref>[http://news.nationalgeographic.com/news/energy/2010/10/101022-energy-marcellus-shale-gas-rush/ Special Report: The Great Shale Gas Rush]</ref> with 70 energy companies prospecting New York, Pennsylvania, West Virginia, and Ohio with plans to drill 3,500 well a year over the next decade with the potential of 200,000 new employment positions.<ref>[http://content.usatoday.com/communities/greenhouse/post/2010/10/shale-gas-energy-future/1 Is vast U.S. reservoir of shale gas the energy answer?]</ref>In August 2011, [[Chesapeake Energy]] announced it would open a field office in Canton.<ref>[http://www.tribtoday.com/page/content.detail/id/560612/Driller-chooses-office-in-Canton.html?nav=5021 "Driller chooses office in Canton"], Matt Steffy. ''Trib Today''. 19 Aug 2011. Retrieved 19 Aug 2011</ref> In September 2011, [[Hess Corporation]] announced a $750 million play in the state's [[Utica Shale]].<ref>[http://www.marketwatch.com/story/hess-acquires-additional-acreage-in-ohios-utica-shale-2011-09-08 "Hess Acquires Additional Acreage in Ohio's Utica Shale"], MarketWatch. 8 September 2011. Accessed 9 September 2011</ref> | By March 2010, [[The Intelligencer & Wheeling News Register|The Intelligencer]], based in neighboring [[Wheeling, West Virginia]], had declared that a "gas rush" was occurring with the Marcellus Shale in the area and that property was "hot".<ref>[http://www.news-register.net/page/content.detail/id/535285.html?nav=515 "The Gas Rush Is On"], ''The Intelligencer'', Retrieved 8 Mar 2010.</ref> May saw the $4.7 billion acquisition by [[Royal Dutch Shell]] of East Resources's drilling property in neighboring states.<ref>[http://www.pittsburghlive.com/x/pittsburghtrib/business/s_683572.html "Royal Dutch Shell buys Marshall gas driller East Resources Inc. for $4.7B"], ''Pittsburgh Tribune''. Rick Stouffer. 29 May 2010. Retrieved 25 June 2010.</ref>Intense leasing activity was reported in eastern Ohio in September,<ref>[http://www.istockanalyst.com/article/viewiStockNews/articleid/4523136 Drillers have high oil, gas hopes for Ohio shale]</ref> including Gastar Exploration and [[South Korea]]-based Atinum Partners citing Ohio acreage in a $70 million deal.<ref>[http://online.wsj.com/article/BT-CO-20100922-703547.html Gastar Enters JV With Korean Firm To Develop Marcellus Assets]</ref> [[Pennsylvania]]-based [[CONSOL Energy]] began drilling [[Belmont County, Ohio|Belmont County]],<ref>[http://pr-canada.net/index.php?option=com_content&task=view&id=277747&Itemid=58 CONSOL Energy Announces Quarterly]</ref> while [[Anschutz Exploration Corporation]] announced that month it had sold {{convert|500000|acre|km2}} of its oil and natural gas fields, including in Ohio, for $3 billion.<ref>[http://www.energytribune.com/articles.cfm/5496/Anschutz-Likely-Makes-Billions-On-Marcellus-Shale-Sale Anschutz Likely Makes Billions On Marcellus Shale Sale]</ref><ref>[http://www.denverpost.com/business/ci_16401450 Anschutz Exploration makes $3 billion shale oil sale]</ref>By October, ''[[National Geographic Society|National Geographic]]'' had officially coined the boom as the "[[Great Shale Gas Rush]]",<ref>[http://news.nationalgeographic.com/news/energy/2010/10/101022-energy-marcellus-shale-gas-rush/ Special Report: The Great Shale Gas Rush]</ref> with 70 energy companies prospecting New York, Pennsylvania, West Virginia, and Ohio with plans to drill 3,500 well a year over the next decade with the potential of 200,000 new employment positions.<ref>[http://content.usatoday.com/communities/greenhouse/post/2010/10/shale-gas-energy-future/1 Is vast U.S. reservoir of shale gas the energy answer?]</ref>In August 2011, [[Chesapeake Energy]] announced it would open a field office in Canton.<ref>[http://www.tribtoday.com/page/content.detail/id/560612/Driller-chooses-office-in-Canton.html?nav=5021 "Driller chooses office in Canton"], Matt Steffy. ''Trib Today''. 19 Aug 2011. Retrieved 19 Aug 2011</ref> In September 2011, [[Hess Corporation]] announced a $750 million play in the state's [[Utica Shale]].<ref>[http://www.marketwatch.com/story/hess-acquires-additional-acreage-in-ohios-utica-shale-2011-09-08 "Hess Acquires Additional Acreage in Ohio's Utica Shale"], MarketWatch. 8 September 2011. Accessed 9 September 2011</ref> | ||
| − | |||
==Utica Shale Development== | ==Utica Shale Development== | ||
Ohio is a state in the Midwestern United States. Ohio is the 34th largest (by area), the 7th most populous, and the 10th most densely populated of the 50 United States. The state's capital and largest city is Columbus. Ohio is in the early stages of the development and exploration of the Utica-Point Pleasant deposits in Ohio with more than 1,000 wells drilled.[1] The hydraulic fracturing process enables energy companies to tap into shale deposits to extract oil, natural gas, natural gas liquids, and condensate.
The US Energy Information Administration estimated in 2012 that the Utica Shale in the US held 15.7 trillion cubic feet of unproved, technically recoverable gas. The average well was estimated to produce 1.13 billion cubic feet of gas.[2] The same year, the US Geological survey estimated that the Utica Shale had 38.2 trillion cubic feet of undiscovered technically recoverable gas, 940 million barrels of oil, and 208 million barrels of natural gas liquids.[3]
Ohio was a world leader in oil production in the late 19th and early 20th centuries.]] The Ohio oil and natural gas industries employ 14,400 citizens, resulting in $730 million in wages. The industries paid $202 million in royalties to landowners, and $84 million in free energy.[4] The state's oil and natural gas industry continues to grow, having topped the $1 billion mark in market value production for four consecutive years, including $1.35 billion in 2008. This has only been accomplished five times in state history.[5][6] The oil and gas industry contributed $1.5 billion to the gross state product in 2008, and $3.1 billion in sales.[7] Ohio has the second largest oil refining capacity in the Midwest.[8] Toledo is home to facilities operated by PBF Energy and BP, totaling over 300,000 BPD capacity. The BP facility is undergoing a $400 million renovation and is expected to receive nearly exclusive supplies from a $2.5 billion oilsands project in Alberta by 2011.[9] Toledo is also a target destination for supplies coming from the Bakken Oil Fields.[10]
The Marathon Petroleum Company and IGS Energy are major oil and natural gas companies headquartered in the state, with Speedway, headquartered in Enon, serving as a gasoline distributor of Marathon. Natural gas supplier Delta Energy completed the construction of its new headquarters in Dublin in the summer of 2011.[11]
Ohio was one of the original modern-energy states in the world starting in the 19th century and has a storied history. The first discovery of oil from a drilled well and first offshore oil rig occurred in Ohio in 1814 in Noble County, and 1891 at Grand Lake St. Marys.[12] Ohio was the country's lead producer of oil between 1895 and 1903, until technology allowed further developments throughout the nation.[13] Since that first well drilled in 1814 by Silas Thora and Robert McKee in Noble County, the state has drilled 273,000 wells, ranking it fourth nationally behind Texas, Oklahoma, and Pennsylvania historically.[14] At peak production, the state produced 24,000,000 barrels (3,800,000 m3) of oil in 1896.[15] They produced the world's first billionaire, John D. Rockefeller, as a result. Standard Oil was first headquartered in Cleveland, beginning in 1870. The state has produced 1,120,000,000 barrels (178,000,000 m3) since 1860.[6]otherwise known as 200 America, has been the headquarters at one time for Standard Oil of Ohio and British Petroleum America. In 2007, the state produced 5,455,000 barrels (867,300 m3) of crude,[6] and increased production to 5,554,000 barrels (883,000 m3) in 2008, ranking #17 in the country.<ref"Crude Oil Production", United States Department of Education, Retrieved 19 Nov 2009.</ref> The state is fourth in the country in total wells drilled, including natural gas, only trailing Texas, Oklahoma, and Pennsylvania, and having drilled 1,048 new wells in 2008.[4] Offshore oil drilling in Lake Erie first occurred in 1913, and the lake is home to oil reserves.
Natural gas was discovered in Clinton County in 1887.[15] In 2008, the state produced 85 billion cubic feet of natural gas, which nearly 100% of the production stayed in the state, enough to heat 1 million homes.[4] The Rockies Express Pipeline was recently completed, connecting the eastern part of Ohio with natural gas production facilities in Colorado. 1.1 trillion cubic feet of natural gas reserves are estimated to be in Ohio's portion of Lake Erie alone.[16]
In 1951, the process of hydraulic fracturing was introduced in Ohio to extract oil and gas.[17] Part of the Devonian Shale is the Marcellus Shale, which alone is estimated to hold between 168 trillion and 516 trillion cubic feet of natural gas.[18] Recent technological advances have made the recovery of these reserves possible, and the state has experienced a boom in drilling.[19] It is estimated that 423 billion barrels (67.3×10^9 m3) of oil are present in the Devonian-Mississippi Shale, with 98% of the near-surface mineable resources located in Ohio, Kentucky, Indiana, and Tennessee.[20]
By March 2010, The Intelligencer, based in neighboring Wheeling, West Virginia, had declared that a "gas rush" was occurring with the Marcellus Shale in the area and that property was "hot".[21] May saw the $4.7 billion acquisition by Royal Dutch Shell of East Resources's drilling property in neighboring states.[22]Intense leasing activity was reported in eastern Ohio in September,[23] including Gastar Exploration and South Korea-based Atinum Partners citing Ohio acreage in a $70 million deal.[24] Pennsylvania-based CONSOL Energy began drilling Belmont County,[25] while Anschutz Exploration Corporation announced that month it had sold 500,000 acres (2,000 km2) of its oil and natural gas fields, including in Ohio, for $3 billion.[26][27]By October, National Geographic had officially coined the boom as the "Great Shale Gas Rush",[28] with 70 energy companies prospecting New York, Pennsylvania, West Virginia, and Ohio with plans to drill 3,500 well a year over the next decade with the potential of 200,000 new employment positions.[29]In August 2011, Chesapeake Energy announced it would open a field office in Canton.[30] In September 2011, Hess Corporation announced a $750 million play in the state's Utica Shale.[31]
Utica Shale drilling and production began in Ohio in 2011. Ohio as of 2013 is becoming a major natural gas and oil producer from the Utica Shale in the eastern part of the state.[32][33] Map of Ohio Utica Shale drilling permits and activity by date.[34][35] In 2011 drilling and permits for drilling in the Utica Shale in Ohio have reached record highs [36] Although the prospective Utica area extends into Pennsylvania and West Virginia, as of 2013, most activity has been in Ohio, because the Ohio portion is believed to be richer in oil, condensate, and natural gas liquids.
<ref> tag;
no text was provided for refs named OC