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Ohio Counties Have Received More Than $300 Million For Road Improvements From Utica Shale Operators

Posted By Mike Chadsey, Director of Public Relations, Tuesday, November 21, 2017

The Ohio Oil and Gas Association (OOGA) and Energy In Depth (EID) Ohio announce the findings of an analysis of road improvements made by Ohio’s oil and gas operators through the Road Usage Maintenance Agreement (RUMA), in its second report in The Utica Shale Local Support Series: Ohio’s Oil & Gas Industry Road Improvement Payments. 

In total, the upstream oil and natural gas industry has spent more than $300 million in eight Ohio counties from 2011 to the first quarter of 2017, and improved more than 630 miles of roads from these investments alone. This report takes a closer look at the history and execution of these agreements within eight counties spanning from 2011 to 2017: Belmont, Carroll, Columbiana, Guernsey, Jefferson, Harrison, Monroe and Noble. This report is the second of its kind in an on-going Utica Shale Local Support Series between OOGA and EID Ohio that collectively examine multiple ways in which oil and natural gas production directly benefits local schools, counties, townships, cities, villages and other vital local services and infrastructure. 

Key Findings For Ohio Shale Counties:

· Total Investment Made in Ohio Infrastructure: More Than $300 Million

· Total Number of Road Miles Improved: More Than 630 Miles

· Amount of Investment Directly to Local Communities: 100 Percent

Earlier this year the first report was released, which found Ohio’s oil and gas operators contributed more than $43 million dollars in six counties over five years, as a result of property taxes paid on crude oil and natural gas production. An addendum with two additional counties was added to the release report to include both Columbiana and Jefferson Counties pushing the Ad Valorem contributed number to $45 million. Combined, these two reports find the oil and gas industry has contributed more than $345 million in direct investment into counties where drilling and production of oil and natural gas from the state’s shale resources is occurring.

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OOGA 2017 Technical Conference and Oilfield Expo Recap

Posted By Lyndsey Kleven, Communications Coordinator, Monday, November 6, 2017
Updated: Thursday, November 9, 2017

The Ohio Oil and Gas Association hosted its seventh annual Technical Conference and Oilfield Expo on November 2, 2017. For the third year, the event was held in Cambridge at the Pritchard Laughlin Civic Center. With the industry slowly recovering from the downturn, the overall attendance, as well as enthusiasm, was up over the last few years as the industry settles into the new normal.  The event hosted a wide array of attendees, exhibitors, and sponsors, all contributing its success. The International Union of Operating Engineers Local 18 was the event’s premier sponsor and was a key driver to the overall success of the event.

The evening before the technical conference presentations, the Association hosted a welcome reception held on the exhibit floor for everyone attending. This was well attended and provided an opportunity for attendees to network, mingle, and visit the exhibitor booths while enjoying hors d’oeuvres and drinks.

“Our technical conference is about sharing information to make our industry better and more efficient.  It was truly a great event this year,” OOGA Executive Vice President Shawn Bennett expressed. “This year we had presentations from all aspects of our industry so there was something there for all of our members.  We had a great turnout and can’t wait to be back next year.”

What really stole the show were the speaker presentations and panel discussions during the technical conference, providing in depth discussion on topics impacting the oil and gas industry.

Some of the various topics at the Technical Conference included comments from experts on emergency response and minimizing costs, to overviews of pieces of equipment such as reciprocating compressors and in-pipe turbine generators. One of the key presentations was provided by Bryce Custer who is experienced in all aspects of commercial real estate. Bryce spoke on the topic site selection criteria for petrochemical and energy service facilities.

“We are beginning to see a renaissance along the Ohio River Corridor.  Dormant steel factories, power plants and industrial sites are being remediated and repurposed for the advent of industries related to the shale gas industry,” said Bryce Custer, with NAI Spring. “The Shell petrochemical plant under construction in Monaca Pennsylvania is providing additional interest in the entire Ohio River and Appalachian basin area.  From “Rust Belt to Plastic Belt” will be the new normal for the entire area.”

“This area has the key criteria for Site Selection in terms of abundant and low cost feedstock, many suitable sites, ongoing infrastructure upgrades, a skilled workforce and most importantly, our proximity to customers along with local and state incentives” according to Custer.

Every year the Association strives to bring the best and brightest to Cambridge to keep all of its members up to date on the latest and greatest innovations within the industry.  This is one of the key roles the Association plays, creating a platform for its members to interact and do business. We encourage everyone to join the conversation next year and attend the event in person to hear the presentations impacting our industry in their entirety.

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OOGA Attends Annual NARO Event

Posted By Mike Chadsey, Director of Public Relations, Wednesday, November 1, 2017
Updated: Thursday, November 9, 2017

The Appalachia Chapter of National Association of Royalty Owners (NARO) recently held its annual conference at the Greenbrier Resort in White Sulfur Springs, WV.  Members from Ohio, West Virginia and elsewhere attended the annual event to network and discuss current issues regarding leases, drilling activity and legislative affairs the Utica and Marcellus development area. 

The two day event hosted many knowledgeable speakers on a wide range of topics.

Bob Orndorff, Dominion Energy; Jim Crews, Marathon/MPLX; and Brent Breon of Blue Racer Midstream sharing some insights on the topic of midstream buildout. Eclipse Resources’ Oleg Tolmachev provided a report on what his company is up to as they continue to expand lateral length and explore for resources underneath the Wayne National Forest. A legislative update from West Virginia and Ohio were provided by State Senator Charles Trump and State Representative Andrew Thompson.

Energy in Depth’s (EID) Jackie Stewart joined OOGA for a talk about how to most effectively use grassroots to get your message across. Your Association and EID have a great and ongoing working relationship with the folks at NARO. Additionally, Jackie had her own session to speak about what the anti-oil and gas groups are up to these days, explaining her various efforts pushing back on their. OOGA was also able to provide a Utica Shale update discussing the status of various upstream, midstream and downstream projects and how the industry gives back to communities across Ohio.

At the membership dinner, The Department of Energy, National Energy Technology Lab’s, Dr. Randall Gentry shared the various research projects he and his teams are working on how their work impacts the industry.

The credit for this very successful event goes to our friend and Medina County’s own, Rebecca Clutter, NARO Appalachia Board member. Rebecca put together a very comprehensive program addressing many of the hot topics of the day. Perhaps most importantly, she addressed the audience about her working relationship with the industry in Ohio and how through combined efforts has been able to get many important items to both landowners and producers accomplished.

This was a great event and we are truly grateful and thankful to Rebecca for having OOGA out to speak and to have the ability to network among friends.  

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2017 OOGA Technical Conference and Oilfield Expo Preview

Posted By Lyndsey Kleven, Wednesday, October 25, 2017
Updated: Thursday, October 26, 2017

Once again the Ohio Oil and Gas Association is pleased to host its seventh annual Technical Conference and Oilfield Expo on November 1-2, 2017 in the heart of Eastern Ohio at the Pritchard Laughlin Civic Center in Cambridge. Network with other professionals, hear dynamic speakers discuss cutting edge topics and join the oilfield welcome reception on the evening of November 1. The main event is all day November 2 and is slated to host hundreds of participants, see who is exhibiting with the interactive Trade Show Floor Plan. As OOGA’s premier fall oil and gas industry event, in-depth presentations on today’s most important topics will include:

  • OOGSC – Emergency Response to Gas Meter Station Slip
  • Minimizing Costs and Maximizing Assets for Salt Water Disposal Wells
  • Structural Control of the Point Pleasant Formation Deposition and Production
  • Capacity Control for Reciprocating Compressors
  • In-Pipe Turbine Generator (IPTG)
  • Site Selection Criteria for Petrochemical and Energy Services Facilities
  • Dissolved Hydrocarbon Gas Analysis in Water
  • Characteristics and Performance of Microbial-Based Well-Stimulation and Paraffin Dispersal Products Obtained From a Novel Fermentation Process

Following day one of exhibitor set-up all event attendees are invited to join exhibitors for the new evening networking reception that will be held on the trade show floor.

OOGA would also like to thank each of our sponsors for making this event possible, with special recognition to International Union of Operating Engineers for being the event’s premier sponsor.

We look forward to seeing you there, visit the event website to learn more and register online!

http://oogatechexpo.com/

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Why The Oil and Gas Leasing Commission Was Created

Posted By Brian Hickman, Director of Government Affairs, Monday, October 16, 2017

In 2010, House Bill 133 was passed and enacted. The bill provided Ohio with a formalized process to determine if oil and gas activity was suitable on public lands. Before HB 133, Ohio’s Department of Administrative Services (DAS) was the sole arbiter of leases, which usually entitled DAS sending the agency in question a boilerplate contract for such an agreement.

HB 133 looked at this practice and created the Oil and Gas Leasing Commission. The panel was comprised of two representatives of the oil and gas industry, a representative knowledgeable in finance or real estate transactions, an environmental or conservation interest, and the Chief of the Division of Geological Survey, who would Chair this group.

Collectively, the Commission would harness these perspectives and decide if an oil and gas lease would be beneficial to enter into with an operator. This analysis would be vital to both the success of the program and the quality of offers accepted and entered into by the State of Ohio.

For example, conceptually the oil and gas industry representatives would provide the Commission with information regarding the drilling of the well, setbacks, and other details pertinent to drilling and operating an oil and gas well. The member representing real estate or finance would provide the Commission with information on the lease, as in what is a reasonable amount for the state to receive with the lease or other contractual provisions. The environmental or conservation interest would bring a perspective of these state lands, as in is it feasible to lease here or, if a lease can proceed, what additional safeguards should be discussed.

In summary, the Oil and Gas Leasing Commission was established to create a formalized process for various interests to begin a discussion about if an oil and gas lease should be entered into on certain state lands. Communication between these interests, the state, the regulatory body, and the general public is the central notion of the program. Now that one individual has been appointed, it is our hope that more appointments follow so that this important discussion can take place for the benefit of Ohio and its citizens. 

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Ohio’s High Court Rejects the Community Environmental Legal Defense Fund’s Charter

Posted By Mike Chadsey, Director of Public Relations, Tuesday, October 10, 2017

Has the wasteful spending of valley tax payer dollars stopped and sanity finally come to the City of Youngstown on this issue? The answer is yes.

The Ohio Supreme Court ruled on Friday that the seventh attempt to ban oil and gas extraction from within limits does not belong on the ballot. In a 4-3 decision, the Court ruled that all or part of the charter amendment falls outside the scope of the authority of the City of Youngstown therefor the amendment to the city charter should not be placed on the ballot.

It is like Christmas in October for the city leaders who have been forced to tighten city budgets on the various needs of the city due to the over $187,000 spent, according to Energy in Depth, on official notices and Election Day expenses over the last six election cycles.

According to charter amendment backer, Susie Beiersdorfer who made the following comments in the Youngstown Vindicator:

“the decision doesn’t really surprise me. The ‘corporate state’ is alive and well, and it doesn’t work for the people.”

The “corporate state” as Mrs. Beiersdorfer puts it, did not draft the so called “Community Bill of Rights” and in fact had nothing to do with the entire effort or the fact that court disagreed with the proposal. The “corporate state” was and is too busy putting the hard working people of Youngstown and the greater Mahoning Valley to work assembling cars, rolling steel and building power plants. Out of state lawyers for the Community Environmental Legal Defense Fund (CELDF) wrote the documents, Beiersdorfer helped spearhead the campaign. Businesses big or small are not to blame for this end results.

After seven attempts and garnering less wins then the Cleveland Browns, it might be time to stop and take note. That is seven spent summers collecting signatures and seven falls campaigning the message, some would say agenda, yet it continues to not resonating with local voters, chambers of commerce, labor unions, their own Mahoning County Board of Elections and the Ohio Supreme Court. Oil and gas is not the enemy in Youngstown, as voters have proved time and time again. Ray and Susie both have positions of influence at Youngstown State University where they are in front countless students who are the next generation of leaders for the Mahoning Valley. They should challenge them to rebuild their community, engage them to be the agents of change for the betterment of the entire region, driving it forward instead of just spinning their wheels.

While CELDF continues to rack up big money in their political accounts and losses in Ohio (5-28 by our count) many county boards of elections, court of common pleas, court of appeals, the Ohio Secretary of State, the Ohio General Assembly and the Ohio Supreme Court have all said the efforts do not comply with state law. The message to the CELDF and the dwindling amount of followers, stop trying to spread misinformation, stop trying to sell the so called “Community Bill of Rights,” stop wasting precious tax payers dollars because no one is listening anymore.  

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Wayne Forest Lease Sales Changing Lives With Nearly $7 Million To Date

Posted By Jackie Stewart, Energy in Depth, Tuesday, October 3, 2017

The Bureau of Land Management (BLM) conducted a competitive online auction today for federal minerals on 191 acres located in the Wayne National Forest (WNF). The combined sale of this acreage – all of which is located in Monroe  County, Ohio — totaled $192,023.84, bringing the grand total for the three WNF lease sales thus far to just under $7 million. That grand total only accounts for five percent of the potential acreage available to lease in WNF.

The state of Ohio will receive approximately 25 percent of today’s sale, and each county with WNF acreage will also receive a share of the proceeds.  This is certainly good news for the people who live and work in Monroe County, as Monroe County Commissioner Mick Schumacher recently told the Times Leader,

“The money goes to the county to be divided. The school district gets 68 percent, and the rest is to be divided between the townships, local governments and levies. This is only initial sales, not royalties.”

But it’s not just the direct revenue from WNF lease sales and royalty payments that are having significant impacts. The real potential economic driver going forward is access to larger private units that will now be available for exploration. Previously, some private minerals and lands adjacent to the public land leased today were held hostage because WNF is a non-contiguous patchwork of federal and private lands and minerals weaved together, which is problematic for economic oil and natural gas development. Thanks to this recent lease sale, more exploration on adjacent private lands can be developed, and with that comes significant tax benefits from property taxes paid on production. As you can see below, Monroe County has watched its property taxes from production skyrocket since shale development began. In 2015 the county collected over $3.4 million.

With 37,904 acres yet to be leased in the Wayne through competitive online auction sales, WNF leasing and development are going to provide tremendous benefits for nearby communities in the coming years — especially if local schools near Ohio are any indicator.

Local schools see big benefits

The oil and gas industry has truly been transformational for children in Appalachia. Monroe County schools are reporting that revenue from the WNF lease sales combined with taxes from oil and natural gas development has enabled them to have more resources available for students.  This added funding has helped curtail the recent trend of students transferring to schools that have traditionally had more resources available.  As Beallsville High School Head Football Coach Larry Deem recently said,

“It’s a step in the right direction, and hopefully the kids are starting to see it, too. We will have what we are supposed to have (enrollment wise). As of right now, this is the first year we don’t have any eighth graders open-enrolled out of Beallsville for the first time since I’ve been here.” (Emphasis added)

To put the significance of this into perspective, it’s important to understand the school has been in dire need of funding to add and improve resources. For instance, the Beallsville High School football team has been using a two-room trailer that has only one restroom,  no hot water and a leaky roof as its locker room. Thanks to local oil and gas leasing and development, including in WNF revenue, the school is now able to make improvements. As Beallsville Superintendent Jeffrey Greenley recently reported to the Intelligencer,

“There is a legitimate business reason to invest in our campuses. Every year we lose 102 students to Barnesville, and in 2016 we also lost another 102 to Shadyside. We receive $6,000 per student, and if I keep 50 kids from leaving the district for three years, we make our full investment back. I don’t think they’re going to come back, but if I can keep them from going there in the first place is the goal. … We want to compete for our kids, and we have to invest in these programs to keep them.”

Greenley reported that one school in his district has been able to spend $948,000 on academic materials just within the last 15 months, with plans to spend an additional $200,000, thanks to revenue from oil and gas.

But Beallsville is not the only school district in the region that has benefited. Thanks to property taxes paid on production combined with proceeds from the mineral sales in WNF, the Switzerland of Ohio Local School District recently made a $700,000 improvement to their athletic field, replacing grass with artificial turf. This is a repair that should last 15 years before it needs replaced.  In fact, all three schools in the district are planning to make improvements to their athletic complexes, including their softball and baseball fields, all funded exclusively by oil and gas money.

In Monroe County particularly, gaining access to these federal minerals is vital, which is why the local schools have overwhelmingly supported the leasing of federal minerals. This is just one more example of many of how disconnected fringe environmental activists really are out of touch with the people who live in work in these communities. The fact is, fracking is positively changing lives and lifting communities and schools in Appalachia.

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OOGA Region I & II Golf Outing

Posted By Lyndsey Kleven, Communications Coordinator, Thursday, September 28, 2017

The OOGA held its annual Region 1 & 2 fall Golf Outing at Shady Hollow Country Club in Massillon last Friday, September 22. The event was very well attended with more than 75 golfers out on the course.

The golf outing previously run by Frank and Doug Gonozalez, owners of GonzOil based in Canton was passed onto the Levengoods, owners of Sound Energy Company, Inc. based in Dover. Tyler Levengood spearheaded along with his brother Nate, enthusiastically stepping up as the new organizers, reinvigorating the event for all generation to partake. The Levengoods moved the event to a new course, added event sponsors and brought in new raffle with some great prizes.  

The Association would like to thank everyone who attended and participated in the 2017 Region 1 & 2 Golf Outing or contributed to its success. Finally, a big thank you to our main event sponsors including: American Refining Group, Inc. for providing lunch and Ergon Oil Purchasing, Inc. for providing beverages. We look forward to seeing you at our next OOGA event—the Technical Conference and Oilfield Expo, being held on November 1-2, 2017 at the Pritchard Laughlin Civic Center in Cambridge, Ohio.

 

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Fossil Fuels Account for 77% of World Energy Use in 2040

Posted By Lyndsey Kleven, Tuesday, September 19, 2017
Updated: Wednesday, September 20, 2017


The U.S. Energy Information Administration (US EIA) released the latest edition of its International Energy Outlook 2017 (IEO2017) that is an assessment of outlooks for international energy markets. The IEO2017 is a compilation of long-term world energy markets, including projections for 16 world regions.


The biggest take away is that world energy use is projected to increase 28% by the year 2040. That is a rise from 2015 global energy consumption at 575,000,000,000,000,000 (quadrillion) British thermal units (Btu) to 736 quadrillion Btu in 2040. Much of the growth is driven largely by increased demands in China, India and other Asian countries.

The increased energy consumption will come from all fuel sources, with the exception of coal demand that remains basically flat. Renewables are expected to be a fast growing source, along with nuclear power, yet the world will rely primarily on fossil fuels as its principal energy source well into the future. Fossil fuels are expected to account for 77% of energy use in 2040, with natural gas rising considerably.

 

Natural gas is the fastest growing fossil fuel in the IEO2017 outlook. Global natural gas consumption is expected to increase 1.4% per year, due to abundant natural gas sources and rising production. In the United States we are seeing a rebound from where the industry was last year at this time, and U.S. natural gas production was projected to increase to a record 59.7 billion cubic feet per day (bcfd) in October. This is up from September and reflects the upward trend that we have been seeing for the past seven months.

 

Also not in the forecast of their report is a peak in global oil demand. Petroleum and other liquid fuels will remain the largest energy source throughout the next two decades, based on IEO2017 predictions. To the tune of the world using 95,000,000 barrels per day (b/d) in 2015, to 104 million b/d in 2030 and 113 million b/d in 2040. To satisfy this growing energy demand, the world needs a production increase by 16.1 million b/d from 2015 to 2040.

The United States is contributing to meet these energy needs, seen in the US EIA’s monthly drilling report, Shale production is set to rise for the 10th month in a row in October. The seven big shale plays across the states are forecasted to bring a rise in monthly production by nearly 79,000 b/d, totaling 6.1 million b/d.

On a local level, we’ve seen a modest increase in production in 2017. The latest quarterly results from the state show Ohio producers recovered 4,044,072 barrels of oil and 388 bcf of natural gas, spanning April 1, 2017 through July 31, 2017. The production results are a positive sign for our industry, as 2016 ended with the industry seeing both oil and natural gas production decrease.

The predictions from the IEO2017 are another set of data points in a larger on going discussion of what our world’s energy future needs to, and will look like. I encourage anyone interested in learning more to view the full report.  

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SHALE INSIGHT Closing Keynote Speaker, Sean Spicer, Former White House Press Secretary

Posted By Lyndsey Kleven, Communications Coordinator, Tuesday, September 12, 2017

The Marcellus Shale Coalition, the Ohio Oil and Gas Association and the West Virginia Oil and Natural Gas Association are hosting the SHALE INSIGHT conference on September 27 and 28 in Pittsburgh, Pennsylvania. Sean Spicer, former White House press secretary, will be the closing keynote speaker at the conference. 

Sean Spicer officially stepped down from his White House post and one of his first public appearances is at SHALE INSIGHT. Spicer will touch on how we are poised to strengthen our nation's geopolitical position, create manufacturing opportunities here at home and jobs for all Americans while continuing to protect our environment. 

Everybody knows Sean Spicer. At least, polls show, they know his name and his trademark style behind the White House podium. But before the former White House Press Secretary made his mark as one of the most recognized staffers in the Trump administration, he built a decades-long career in Republican politics, witnessing and shaping the inner workings of Washington, DC, from every vantage point--as a House of Representatives communicator, Assistant U.S. Trade Representative, Republican National Committee chief strategist, top advisor to presidential campaigns, and, of course, White House spokesman. Few in Washington are as well-equipped as Sean to pull back the curtain and dissect what’s really happening in the nation’s capital.

Sean is a lifelong Republican operative who worked his way up through the ranks and whom colleagues know as relentless, quick-witted and good-humored. Melissa McCarthy’s depiction of his press briefing performances earned him a spot in Saturday Night Live lore, but it was his role as the architect of the Republican National Committee’s PR strategy that earned him a reputation as one of the party’s most effective and hardest-charging strategists and communicators. He helped the party successfully rebuild following losses in the 2012 election, and he then played a key role in the strategy behind the party’s sweeping 2014 victories, the must-see 2016 primary debates and the party’s improbable wins across the country that November.

Outside of politics, Sean serves as a commander in the U.S. Navy Reserve. A Rhode Island native and Connecticut College graduate, he also holds a master’s degree from the Naval War College. A husband and father of two, he resides in Virginia but remains a loyal fan of the Boston Red Sox.

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