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Our Industry:
Meeting our Industry Needs

Independent producers continue to be an important part of our nation’s energy past, present, and future. Independents are the people who are developing America’s oil and gas resource base. Independent producers drill 90 percent of domestic oil and natural gas wells, produce 82 percent of America’s natural gas and 68 percent of America’s crude oil – more oil if the survey did not include Alaskan North Slope oil production. With the increase in Utica Shale activity in Ohio, major oil and natural gas companies are expanding and establishing roots within our state. These companies have explored for oil and natural gas in various shale plays within our nation, offshore, and even internationally. These companies, along with Ohio’s independent producers, continue to look for ways to improve and expand Ohio’s proven crude oil and natural gas reserves.

OOGA Reports

Road Improvement Payments

Utica Shale Local Support Series: Ohio's Oil & Gas Industry Road Improvement Payments

In its second report The Utica Shale Local Support Series: Ohio’s Oil & Gas Industry Road Improvement Payments, 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 of the Road Use Maintenance Agreement (RUMA) and the 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

Property Tax Payments

Utica Shale Local Support Series: Update: Ohio’s Oil & Gas Industry Property Tax Payments

In this update of our 2017 report, we examine multiple ways in which shale development benefits Ohio schools, municipalities, counties and other vital local services directly through real estate property taxes paid on oil and natural gas production. In total, the oil and natural gas industry contributed more than $141.9 million to eight Ohio counties from 2010 to 2017 from this tax alone. That’s more than triple our previously reported $45 million these counties received from 2010 to 2015.

Key Findings for Ohio Shale Counties:

  • Total Property Tax Paid (2010-2017): $141.9 million
  • Projected Property Taxes to Be Paid (2016-2026): $200-250 million
  • Amount of Real Estate Property Tax Directly Paid to Local Governments/Schools: 100 percent
  • Percent of Property Tax Collections to Ohio Local Schools: 60-70 percent

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Ohio Landman Registration

Ohio Landman Registration Rollout
Navigating Ohio's new Registraion requirements

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Our Economic Impact

Mapping the Opportunities for Shale Development in Ohio

Key Findings:

  • Anticipated Production of Natural Gas in the Utica/Marcellus Basin Will Create a Surplus of Ethane in the Region by 2020 in Excess of the Take Away Capacity.
  • Operating companies can now predict with considerable accuracy the nature and amount of production likely to be recovered from the region, and from each well.
  • Among the most important insights gleaned from production to date is that certain areas of the Utica are rich in not only natural gas, but also natural gas liquids.
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Economics of Utica Shale in Ohio: Supply Chain Analysis

Key Findings:

  • Utica shale development presents new opportunities for Ohio companies to sell their products and services throughout the oil and gas industry supply chain.
  • The best opportunities for supplying goods and services for oil and gas companies in Ohio exist in supporting the upstream (well field development) and midstream (building the pipeline infrastructure that connects the well field to processing plants) industries.
  • While the anticipated downstream petrochemical and plastic manufacturing expansion may not provide immediate opportunities, the real prospect for commercial investments exist.
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Economics of Utica Shale in Ohio: Workforce Analysis

Key Findings:

  • The conservative scenario illustrated that about 20,000 direct jobs in construction and maintenance of upstream and midstream infrastructure will require training of leasing agents, environmental technicians, para-legal, GIS technicians, cartographers, roughnecks, rig movers, heavy equipment operators, frack crew members and general laborers.
  • Utica shale deposits will be developed in Ohio over the next 20, 50, or even 100 years. However fostering upstream, midstream and downstream industries around Utica play will require skilled labor to produce and transform dry gas, NGLs and oil locally.
  • Helping the education institutions and training programs to form close connections with the oil and gas industry and developing shale related training programs might stimulate local employment in already existing or new jobs in upstream and downstream industries.
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The Shale Crescent USA Region: An emerging energy cluster

Key Findings:

  • Shale Crescent USA which is comprised of Ohio, West Virginia and Pennsylvania is the third largest natural gas producer in the world behind the United States at number one and Russia at number two.
  • The Shale Crescent USA has a pre-tax cash flow advantage of $3.6 Billion for a nearly $3 Billion investment in an ethylene/polyethylene plant.
  • The cost of ethane is 32% lower and the the cost of polyethylene is 23% lower.
  • The top five advantages of the Shale Crescent USA are Abundant Natural Gas Supply, Access to Water, Proximity to Market Demand, Skilled Labor Force and Cost Advantage
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The Potential Economic Benefits of an Appalachian Petrocehmical Industry

Key Findings:

  • $35.8 billion in capital investment
  • 100,818 jobs
  • $6.2 billion in payroll
  • $2.9 billion in Federal, State and Local taxes
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Energy and Chemicals

Key Findings:

  • With more than $70 billion in energy investments, Ohio is a leader in the energy industry.
  • Of this amount, $46.9 billion represented upstream investment.
  • More than $18.8 billion has been invested in Ohio midstream activities.
  • $3.6 billion in downstream investment since 2011.
  • Ohio is home to much of the Utica and Marcellus shale plays, which have accounted for 85 percent of the U.S. shale gas production growth since the start of 2011.
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Ohio Labor Market Information:
Ohio Shale

Key Findings:

  • Employment increased in all but one of Ohio's five core shale related industries from 2016 to 2017. Oil and gas pipeline construction employment increased by 120.7% over the year.
  • The number of Ohio jobs in core industries rose from 10,672 to 16,402.
  • Overall employment in the core industries rose 53.7% a gain of 5,730 jobs.
  • Employment in the ancillary shale related industries increased from 178,232 to 181,720.
  • Among the key shale related occupations, 32 of the top 38 jobs had a medium annual wages above the state median wage of $36,500.
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Ohio State Profile and Energy Estimates

Key Findings:

  • The Utica Shale accounts for almost all of the rapid increase in natural gas production in Ohio, which was more than 21 times greater in 2017 than in 2012.
  • Ohio is the eighth-largest ethanol-producing state in the nation, supplying almost 550 million gallons of ethanol per year.
  • As of January 2017, Ohio had the sixth-largest crude oil-refining capacity in the nation.
  • The United States is likely to be a net energy exporter through at least 2050. The United States should also become a net exporter of petroleum liquids — oil and products like gasoline — after 2020.
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Additional Links

Ohio Oil & Gas Activity

As presented by Marty Shumway of Locus Bio-Energy Solutions LLC at the 2020 Annual Meeting.

Each year, the Ohio Department of Natural Resources (ODNR) Division of Oil and Gas Resources Management (DOGRM) compiles a report on oil and gas activities in Ohio.

The ODNR 2020 first quarter report lists 2,573 horizontal shale wells:

  • The average amount of oil produced per well was 2,346 barrels.
  • The average amount of natural gas produced per well was 231,819 Mcf.

All horizontal production reports can be accessed at http://oilandgas.ohiodnr.gov/production.

Ohio Market Report

Natural Gas Index Pricing: SEPTEMBER 2020

Price Change From Last Month
NYMEX Last Day Settle Price $2.579 + $0.725
NYMEX Last 3-Day Average Settle Price $2.510 + $0.714
Appalachian Index – Dominion Transmission $1.110 - $0.160
Appalachian Index – TCO $1.700 + $0.070

Ohio Condensate Prices (Marcellus/Utica)

Tax Information

2017 Uniform Valuation of Oil and Gas Deposits

The Ohio Department of Taxation has released their uniform formula for the valuation of oil and gas deposits in Ohio for tax year 2017. In 2005, House Bill 66 exempted producers from the tangible personal property tax. Since then, OOGA, the Department of Taxation and state legislators have worked to find a fair and equitable formula to replace this tax. Per 2006's budget bill (HB 699), this new formula was codified for the valuation of these reserves.

The formula for 2017 is as follows:

Crude Oil (All Grades)
Average Daily Production Taxable Value Change from 2016
One barrel or more $4,510 per barrel $800 less
Less then one barrel $2,710 per barrel $480 less
Natural Gas
Average Daily Production Taxable Values Change from 2016
More than 8 MCF $190 per MCF $30 Less
Less than 8 MCF $95 per MCF $15 Less
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