Oilpatch Snapshot
Oil & Gas Business Educational Development Seminar
April 11, 2011
Ohio Oil & Gas IndustryIndustry in Ohio for 150 years
275,774 oil and gas wells drilled64,378 wells in production
Production
Crude Oil
2011 4,852,964 barrels
Total1,141,380,706 barrels
Natural Gas
201173,289,838 mcf
Total8,593,388,085 mcf
Production numbers estimated based on available data, compiled by OOGA, oil reserve, gas reserve and the Department of Energy
2011 Wells Drilled by County
460 total wells County Information
Stark – 40Mahoning - 21
Tuscarawas - 18Carroll - 15
Portage - 14Summit – 11
Major targeted reservoirsClinton/Beekmantown
≥ 20 wells < 20 wells
What does Shale mean to Ohio’s
Economy?2010
• $988 million in gross state product• $1.7 billion statewide output or sales
2011-2014 • Oil and gas producers are projected to reinvest over $34 billion in exploration and development, midstream, royalty and lease expenditures.
• Could generate approximately $12.3 billion to the gross state product and have a statewide output or sales of $23 billion.
• Distribute $1.6 billion in royalty payments
Ohio Oil & Gas Energy Education
Programwww.oogeep.org
Economic Impact Study
Released September 2011
It’s not the strongest of the species that survives, not the most intelligent, but the ones most responsive to change –
Charles Darwin
Fresh Water Impoundment
Access (Lease) Road
Well pad
Pipeline access
Predrilling Supply ChainPredrilling Supply Chain
Source: Marcellus Shale Education and Training Center © MSETC, 2012
Supply Chain Opportunities
Pre-Drilling• Construction • Aggregates• Surveying• Fencing
• Equipment Rental• Environmental • Engineering
TimeframeUp to 2 months
Drilling Down
Crown Block
Derrick
TravelingBlock/ Top
Drive
Triple Standing Drill Pipe
Dog House
Monkey Board
Drilling & Well Construction
Source: Marcellus Shale Education and Training Center © MSETC, 2012
Supply Chain Opportunities
Drilling and Well Construction• Trucks, Trucks
and more Trucks • Equipment rental• Water• Security
• Fuel • Aggregates• Maintenance/ repair parts• Housing/ hospitality
Timeframe2-4 months
Drilling Down
Completion Supply ChainCourtesy: Range Resources Appalachia
Goat head
Pump Trucks
Blender Trucks
Acid Truck
Water Transfer
Tanks
Sand Storage
Control CenterChemical Storage
High PressureManifold
Water Impoundment
Sand Haulers
Staging Area
Water Transfer Lines
Source: Marcellus Shale Education and Training Center © MSETC, 2012
Supply Chain Opportunities
Completion/Mid-stream
Timeframe
Drilling Down• Water, Water and more Water• Meters/ monitoring• Refining• Product sales
• Site Restoration • Pipeline• Welding supply• Compressors• ROW Work
Completion work: 2 months up Production: up to 60 Years
Recent Industrial Investments in Utica Shale
V&M Star – Youngstown $650 Million +
U.S. Steel, Lorain $240 Million
Timken, Canton $225 Million
Chesapeake Energy, M3 Midstream, & EV Energy Partners, Columbiana
County $900 million
Halliburton – Muskingum County$150 million and 300 jobs
14
MarkWest – Harrison & Monroe Counties$500 million and
700+ construction jobs
Exterran – Columbiana County$13 million and about 100 jobs
Baker Hughes – Stark County$64 million and 700 jobs
Select Energy Services – Carroll County
$10 million and 185 jobs
$2.75 BILLION and Counting – NOT Including Lease and Royalty Payments, Operations, etc.
Business Development Seminar Goals
• Overview of how the industry procurement process works
• Opportunities within the supply chain
• Tools to build a business plan to enter the oil and gas industry– Safety expectations– Insurance requirements– Contracts– Marketing ideas
Ohio Oil and Gas Association
Kristy Hawthorne Director of Membership
Services and Small Business Development
The Ohio Oil & Gas Association (OOGA) is a trade association with over 2,300 members involved in the exploration,
production and development of crude oil and natural gas resources within the State of Ohio.
www.ooga.org