Oil & Gas Business Educational D evelopment Seminar Apr il 11, 2011
Oilpatch Snapshot
Ohio Oil & Gas I ndustr y Industry in Ohio for 150 years 275,774 oil and gas wells drilled 64,378 wells in production
Production Cr ude Oil
N atur al Gas
2011 4,852,964 barrels
2011 73,289,838 mcf
T otal 1,141,380,706 barrels
T otal 8,593,388,085 mcf
Production numbers estimated based on available data, compiled by OOGA, oil reserve, gas reserve and the Department of Energy
2011 Wells D r illed by County 460 total w ells County I nfor mation Stark – 40 Mahoning - 21 Tuscarawas - 18 Carroll - 15 Portage - 14 Summit – 11 Major targeted reservoirs Clinton/ Beekmantown
≥ 20 wells
< 20 wells
What does Shale mean to Ohio’s Economy?
Ohio Oil & Gas Ener gy Education Pr ogr am www.oogeep.org
Economic I mpact Study Released September 2011
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
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Pr edr illing Supply Chain Access (Lease) Road
Fresh Water Impoundment
Well pad
Pipeline access
Sour ce: M ar cellus Shale Education and T r aining Center Š M SET C, 2012
Supply Chain Oppor tunities D r illing D ow n
Pr e-D r illing • • • •
Construction Aggregates Surveying Fencing
• Equipment Rental • Environmental • Engineering
T imefr ame Up to 2 months
Drilling & Well Construction Crown Block
Derrick
Monkey Board
Traveling Block/ Top Drive Triple Standing Drill Pipe
Dog House
Sour ce: M ar cellus Shale Education and T r aining Cent er Š M SET C, 2012
Supply Chain Oppor tunities D r illing D ow n
D r illing and Well • Fuel • Trucks, Trucks uction Constr and more Trucks • Equipment rental • Water • Security
• Aggregates • Maintenance/ repair parts • Housing/ hospitality
T imefr ame 2-4 months
Completion Supply Chain Courtesy: Range Resources Appalachia
Sand Storage
Water Impoundment
Acid Truck Goat head Staging Area
Blender Trucks Control Center
Chemical Storage
Pump Trucks Water Transfer Tanks High Pressure Water Transfer Manifold Lines Sour ce: M ar cellus Shale Educat ion and T r aining Center Š M SET C, 2012
Sand Haulers
Supply Chain Oppor tunities D r illing D ow n
Completion/M idstr • Water, Water • Site Restoration andeam more Water • Meters/ monitoring • Refining • Product sales
• • • •
Pipeline Welding supply Compressors ROW Work
T imefr ame 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
MarkWest – Harrison & Monroe Counties $500 million and 700+ construction jobs
Timken, Canton $225 Million
Exterran – Columbiana County $13 million and about 100 jobs
Chesapeake Energy, M3 Midstream, & EV Energy Partners, Columbiana County $900 million
Baker Hughes – Stark County $64 million and 700 jobs
Halliburton – Muskingum County $150 million and 300 jobs
Select Energy Services – Carroll County $10 million and 185 jobs
$2.75 BILLION and Counting – NOT Including Lease and Royalty Payments, Operations, etc. 14
Business D evelopme nt 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 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.
Kristy Hawthorne Director of Membership Services and Small Business Development
khawthorne@ooga.org 740-587-0444
www.ooga.org