April 2020
A Free Monthly Publication
NEW OHIO OIL AND GAS RESOURCES MANAGEMENT CHIEF ANNOUNCED
BYESVILLE ROTARIANS LEARN
ABOUT GUERNSEY COUNTY OIL AND GAS DEVELOPMENT IN THIS ISSUE: THE SHOW MUST GO ON! - GUEST EDITORIAL
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OHIO’S GAS & OIL INDUSTRY RAVENNA Jim Williams 330.298.2002
WOOSTER Aaron Bass 330.264.1125
CALL YOUR LOCAL OHIO GAS & OIL SALES REP. TODAY
Table of Contents APRIL 2020 G ROUP PUBLISHER
2
A Look Ahead Gas & Oil Events
3
Byesville Rotarians Learn About Guernsey County Oil and Gas Development
4
U.S. Natural Gas Production Grew Again in 2019, Increasing by 10%
6
New Oil and Gas Resources Management Chief Announced
7
The Show Must Go On! - Guest Editorial
9
Super Tuesday Voters Reject Radical Environmental Policies
Bill Albrecht
EXECUTIVE EDITOR Beth Bailey bbailey@daily-jeff.com
10
U.S. Natural Gas Consumption Sets New Record in 2019
12
CELDF Ballot Measure Overturned Once Again Because “Unconstitutionally Vague”
13
U.S. Crude Oil Exports Increased to Nearly 3 Million Barrels per day in 2019
15
Ohio Well Activity
16
Horizontal Drilling Activity Graph
On The Cover:
The Division Management’s
APRIL 2020
of Oil and Gas Resource regulatory responsibilities include oil and gas drilling, underground injection operations, oil and gas waste recycling, solution mining, gas storage operations, permitting and construction of horizontal well sites, and inspecting the drilling, restoration and plugging of all oil and gas wells.
APRIL 2020 ADVER TISING Paul Reynolds Cambridge, Ohio Office preynolds@gatehousemedia.com 740-439-3531 Aaron Bass Wooster & Holmes, and Ashland, Ohio Offices abass@gatehousemedia.com 330-264-1125 419-281-0581 Mindy Cannon Alliance & Minerva, Ohio Offices mcannon@the-review.com 330-821-1200 Jim Williams Kent, Ohio Office jim.williams@recordpub.com 330-298-2002
L AYOUT DESIG NER Phil Luks
pluks@recordpub.com
212 E. Liberty St. Wooster, OH 44691 330-264-1125 “Ohio Gas & Oil” is a monthly publication. © GANNETT Co. Inc. 2020
OhioGas&Oil
1
A Look Ahead
Gas & Oil Events APRIL 23, 2020
SOOGA - 2020 SPRING MEMBERSHIP MEETING Marietta Shrine Club Marietta, OH 45750
MAY 2-3, 2020
OOGEEP RESPONDING TO OILFIELD EMERGENCIES TRAINING
INSTRUCTORS Lead Fire Instructor: Chief Brent Gates, New Concord Fire Department – Ohio Certified Fire Instructor – Adjunct Instructor Ohio Fire Academy – Board of Directors, Ohio Fire Chiefs’ Association – President, Southeast Fire Chiefs’ Association – More than 40 years experience in emergency response and fire education Other Instructors: Includes a team of 15+ state certified fire instructors, emergency responders and industry experts with more than 500 years of combined experience in the oil and gas industry and/ or fire service. TRAINING LOCATION Wayne County Fire & Rescue Regional Training Facility 2311 South Millborne Road, Apple Creek, OH 44606 www.oogeep.org
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SEPTEMBER 24, 2020 SOOGA ANNUAL TRADE SHOW Broughton’s Community Building Marietta, OH 45750
OCTOBER 3-4, 2020
OOGEEP RESPONDING TO OILFIELD EMERGENCIES TRAINING
INSTRUCTORS Lead Fire Instructor: Chief Brent Gates, New Concord Fire Department – Ohio Certified Fire Instructor
– Adjunct Instructor Ohio Fire Academy – Board of Directors, Ohio Fire Chiefs’ Association – President, Southeast Fire Chiefs’ Association – More than 40 years experience in emergency response and fire education Other Instructors: Includes a team of 15+ state certified fire instructors, emergency responders and industry experts with more than 500 years of combined experience in the oil and gas industry and/ or fire service. TRAINING LOCATION Wayne County Fire & Rescue Regional Training Facility 2311 South Millborne Road, Apple Creek, OH 44606 www.oogeep.org
MAY 15, 2020
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JULY 27 – 29, 2020
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OhioGas&Oil
APRIL 2020
Byesville Rotarians
Learn About Guernsey County Oil and Gas Development Mike Chadsey, Director of Public Relations for Ohio Oil and Gas Association, spoke to the Byesville Rotary. Chadsey described the Ohio Oil and Gas Association (affectionately nicknamed OOGA) as a trade association representing all facets of the oil and gas industry in Ohio. OOGA members include the oil and natural gas producers seen drilling in Guernsey County, national oil and natural gas producing companies, plus international oil and natural gas companies. Chadsey stated that the U.S. is the largest national gas producer and Russia is number 2. Together, Ohio and Pennsylvania rank number 3. The discovery of Ohio’s oil shale has given Ohio a presence in the international oil and gas industry. Chadsey shared a little-known fact that in 1814, Ohio had the first discovery of oil in the U.S. Landowners Thorla and McKee were drilling for slat brine to make salt. They found brine and some awful smelling stuff
Pictured: Mike Chadsey, Director of Public Relations, OOGA; and Shana Fair, President Byesville Rotary.
APRIL 2020
that created a nuisance for them by polluting their salt brine. Salt evaporated from the brine was valuable and could be sold for preserving and flavoring food and raising livestock. The black smelly stuff was not considered valuable until 1859 when refining made it useful for use in homes. Drilling companies active on our area include Encino Energy, Ascent Resources, Montage Resources and EQT—the oldest and largest company in the U.S. Chadsey pointed out the currently many drilling companies are consolidating so we should expect names o to change. Currently, Ohio produces more gas than it consumes. Chadsey explained that the oil shale and the drilling companies are the bottom level of a complex of industries that are part of the oil and gas industry. This complex of associated industries may take up to 10 years to develop. Industries and businesses drawn to an oil and gas producing area include natural gas power plants such as the one being built along I 77 and south of I 70. Another level of industry is the ethane cracker plants which break the ethane into its chemical components which are used to produce plastic such as polyethylene. A final level of industry is the establishment of plastic manufacturing plants which like to be located near to the plastic supplies they need. Chadsey pointed out that our area has advantages other than oil shale—good weather for one—in this case no hurricanes which can force power plants to close down. Additionally, Guernsey County is within a 1-day drive to 50% of North American markets. Connect with #ByesvilleRotary at: www.Byesvillerotary.blogspot.com , Twitter Byesville_Club, or Facebook https://www.facebook.com/pages/ByesvilleRotary/256548047818283. The club meets 7:30 am, Tuesday at the Stop Nine Senior Center at 60313 (GPS use 60299) Southgate Road, Byesville. Walk-ins are welcome at the club’s meeting.
OhioGas&Oil
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U.S. Natural Gas Production
Grew Again in 2019, Increasing by 10% U.S. Energy Information Administration
Source: U.S. Energy Information Administration, Monthly Crude Oil and Natural Gas Production Report, Natural Gas Monthly
U.S. natural gas production grew by 9.8 billion cubic feet per day (Bcf/d) in 2019, a 10% increase from 2018. The increase was slightly less than the 2018 annual increase of 10.5 Bcf/d. U.S. natural gas production measured asgross withdrawals (the most comprehensive measure of natural gas production) averaged 111.5 Bcf/d in 2019, the highest volume on record, according to the U.S. Energy Information Administration’s (EIA) Monthly Crude Oil and Natural Gas Production Report. U.S. natural gas production, when measured as marketed natural gas productionand dry natural gas production, also reached new highs at 99.2 Bcf/d and 92.2 Bcf/d, respectively. U.S. natural gas gross withdrawals recorded a monthly high of 116.8 Bcf/d in November 2019. Marketed natural gas production and dry natural gas production also reached monthly record highs of 103.6 Bcf/d and 96.4 Bcf/d, respectively, in November 2019. Gross withdrawals are the largest of the three measures because they include all natural gas plant liquids and nonhydrocarbon gases after oil, lease condensate, and water have been removed. Marketed natural gas
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production reflects gross withdrawals less natural gas used for repressuring wells, quantitiesvented or flared, and nonhydrocarbon gases removed in treating or processing operations. Dry natural gas is consumer-grade natural gas, or marketed production less natural gas liquids extracted. Monthly U.S. natural gas imports and exports (2006-2019) billion cubic feet per day 14 14
12
12 imports by pipeline
10
10
exports by pipeline 8
8
6
6
4
imports of liquefied natural gas (LNG)
2 0 2006
2010
2014
2018
4 2 0 2006
exports of LNG 2010
2014
2018
Source: U.S. Energy Information Administration, Natural Gas Monthly
As natural gas production increased, the volume of natural gas exports—both through pipelines and as liqProduction continued on page 5
APRIL 2020
Production continued from page 4
uefied natural gas (LNG)—increased for the fifth consecutive year to an annual average of 12.8 Bcf/d. LNG exports accounted for 2.0 Bcf/d of the 2.9 Bcf/d increase in gross natural gas exports in 2019. Both pipeline and LNG gross exports of natural gas reached record monthly highs in December 2019 of 8.4 Bcf/d and 7.1 Bcf/d, respectively. The United States continued to export more natural gas than it imported in 2019, and net natural gas exports averaged 5.2 Bcf/d. In 2019, the United States also exported more natural gas by pipeline than it imported for the first time since at least 1985, mainly because of increased pipeline capacity to send natural gas to Canada and Mexico.
The Appalachian region remains the largest natural gas producing region in the United States. Appalachian natural gas production from the Marcellus and Utica/Point Pleasant shales of Ohio, West Virginia, and Pennsylvania continues to grow; gross withdrawals increased from 28.6 Bcf/d in 2018 to 32.1 Bcf/d in 2019. Within the Appalachian region, Pennsylvania had the largest increase in gross withdrawals of natural gas, increasing by 2.1 Bcf/d in 2019 to reach 19.1 Bcf/d. Nationally, Pennsylvania’s increase was second to that of Texas, where gross withdrawals increased by 3.6 Bcf/d to a record annual production of 28.0 Bcf/d. Texas’s increase in natural gas production is mainly from development in the Permian Basin and Haynesville shale formations. According to EIA’s Drilling Productivity Report, natural gas production in the Permian Basin increased by 3.4 Bcf/d in 2019, or 30%, and production in the Haynesville formation increased by 2.4 Bcf/d, or 26% compared with the previous year. Principal contributor: Emily Geary
Source: U.S. Energy Information Administration, Monthly Crude Oil and Natural Gas Production Report
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New Oil and Gas
Resources Management Chief Announced
Ohio Department of Natural Resources Director Mary Mertz recently announced the selection of Eric Vendel as chief of the Division of Oil and Gas Resources Management. “Eric Vendel’s extensive legal and administrative experience in oil and gas regulation makes him the ideal candidate for this position,” said Director Mertz. “Over the past decade, Ohio’s oil and gas program has set a strong example for other states to follow, and I’m confident the division will continue its exemplary work under Eric’s leadership.” Vendel will oversee ODNR’s regulation of Ohio’s oil and natural gas industry for the protection of the public and the environment while ensuring the state’s abundant natural resources are managed and developed responsibly. Eric Vendel has served as the Division of Oil and Gas Resource Management’s lead attorney since 2012 where he has drafted and reviewed oil and gas rules and regulations, Chief’s Orders, contracts, and compli-
ance agreements, as well as advising staff on enforcement, permitting, engineering, underground injection control, emergency response, and the orphan well program. Before coming to ODNR, Vendel served as an attorney with the Ohio Legislative Service Commission where he was the principal drafter of several oil and gas bills. Vendel holds a J.D. from Capital University Law School, a master’s degree in organic chemistry from The Ohio State University, and a bachelor’s degree in chemistry from Wittenberg University. The Division of Oil and Gas Resource Management’s regulatory responsibilities include oil and gas drilling, underground injection operations, oil and gas waste recycling, solution mining, gas storage operations, permitting and construction of horizontal well sites, and inspecting the drilling, restoration and plugging of all oil and gas wells. Visit oilandgas.ohiodnr.gov to learn more about the Division of Oil and Gas Resources Management.
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APRIL 2020
The Show
Must Go On! Guest Editorial
GREG KOZERA | Shale Crescent USA Last weekend when I was in Houston for our National Speakers Association (NSA) Winter Conference, one of the topics discussed was the Corona Virus. For professional speakers, it is a big concern since speaking at conventions or conferences is a major source of their income. Canceled meetings mean lost revenues. A panel of experts told the attendees to expect many meetings to cancel out of caution especially international meetings. They also gave us hope. Several years ago, one of the panelists had been to the region of China where the virus initiated. He told us the population in that region is over 20 million. The number of reported virus cases in that Region is approximately 200,000. A person in that
high- risk region has a 0.0001% chance of getting the virus and an even lower chance of being killed by it. We probably have a higher chance of getting the flu. This doesn’t mean we shouldn’t be concerned or take common sense precautions. The panel made the point, speaking is a delivery system. This is a time to be creative. There are other ways to communicate information like webinars or video conferences to name just two. The point is, we can’t control the spread of the Corona Virus and we can’t control the decision of an organization or company to cancel a convention or conference. We can’t control the actions of others. We do have control of our own actions and how we react to a problem. Show continued on page 8
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Lynnda and I left Houston on Sunday and flew to Orlando. We went straight to Epcot at Walt Disney World for a test run. We are both recovering from knee surgery and are coming back to Disney in a month with our youngest son and his family of four children. We wanted to make sure we could navigate the parks and rides without the need of a wheelchair or other assistance. There is a lot of walking involved. Could we do it? Waiting for Lynnda to get her purse inspected at Epcot security, I got a call from my friend, Ben at IHSMarkit. He told me out of concern for attendee safety the World Petrochemical Conference (WPC) in New Orleans the week of March 23rd was cancelled. As predicted at NSA, I was impacted by the Corona Virus. WPC is a big deal for Shale Crescent USA. We have been preparing for months. We are a major sponsor. We were doing a lunch presentation. Last year our lunch presentation was packed to standing room only. I had meetings set up with 6 major companies. All prospects for coming to our Region. Historically WPC has been our best source of prospects and leads. All of this gone with one phone call we had no control over. The panel of experts told us at NSA if a conference is cancelled the reasons for people attending remain. That creates opportunity. Most likely if WPC had been held attendance would be lower. There would have been an increased risk for us of being infected especially from a foreign source. A number of other meetings have already been cancelled. Some companies have restricted travel. We were going to meet our son in-law from Baltimore at the Orlando airport hotel. He was flying in for a one day meeting. It was cancelled. At Shale Crescent USA, we have a choice. We can do nothing and feel sorry for ourselves or we can do something. The WPC attendees have needs. We can help. We believe the Show must go on. We decided to take control and seize the opportunity. We have begun to reschedule our WPC meetings with US companies. We are still working on our presentation to turn it into a webinar or video conference. We can reach out to the same people and companies that would have attended out luncheon. Asian companies will be more difficult since we can’t meet individually right now. There is a 12 to 14-hour time difference so some of our webinars and video conferences could be at some odd night time hours. We may be able to get some of these companies to attend Select USA in June and meet with them at that time. There are always other possibilities we haven’t considered. What does this mean to you? Life and business are full of surprises, some of them bad. There are circumstances and people we have no control over. We have 100% control over our attitude and our actions. Doing nothing or having a personal pity party is NOT an option if we want to succeed. We will all be impacted by the Corona Virus in some way. We are seeing lower gasoline prices due to reduced
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Chinese demand. We are also seeing lower stock market prices impacting our net worth, 401K or retirement. Business travel is already being restricted. Companies and individuals depending on China for products are impacted. We can’t change these macro impacts. We can decide how we choose to react to them. The Corona Virus is like any other problem we have no control over. We can choose to take control of our attitude and our actions. We can use our creativity. Some of what we do will fail. We can try something else. We can choose not to quit. I don’t know what the result of our actions at Shale Crescent USA will be. The Show must go on. We will move forward. I do know Lynnda overcame her surgery and I overcame my injury to have 3 great days without needing a wheelchair at Disney World this week. The Show did go on. We believe we are ready for the grandkids. All things are possible. © 2020 Shale Crescent USA Greg Kozera, gkozera@shalecrescentusa.com is the Director of Marketing and Sales for Shale Crescent USA. He is a professional engineer with a Masters in Environmental Engineering who has over 40 years’ experience in the energy industry. Greg is a leadership expert and the author of four books and numerous published articles.
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APRIL 2020
Super Tuesday Voters
Reject Radical Environmental Policies energyindepth.org Energy, the environment, and climate change have played prominent roles in the 2020 Democratic presidential primaries. Candidates have made these issues a key part of their platforms, pressured by environmental activists pushing for radical “Keep It In the Ground” policy proposals that would undercut American energy security, lead to a massive economic hit, and take away key fuels like natural gas that have helped dramatically lower emissions. The resulting climate-specific town halls and attempts by candidates to include climate change in responses during debates even when it wasn’t the topic at hand gave the appearance that the country wants to see extreme, aggressive policies like those proposed by Sens. Bernie Sanders and Elizabeth Warren – even if they aren’t realistic – to address the issue. But voters on Super Tuesday showed that narrative to be exaggerated, if not outright false. As E&E News reports: “[Former Vice President Joe] Biden’s climate plan was scored at or near the bottom of the field by the Sunrise Movement, Greenpeace, 350 Action, Data for Progress and the Center for Biological Diversity Action Fund. The Sunrise Movement endorsed Sanders and campaigned for him aggressively.” But voters who prioritize energy, the environment, and climate change weren’t on board with ideas supported by Sanders and these activist groups, firmly rejecting that platform: “That didn’t stop Biden from winning a plurality of climate voters across Super Tuesday states, according to a Washington Post compilation of exit polls. Biden took 33 percent of those voters compared to 28 percent for Sanders, 16 percent for Sen. Elizabeth Warren and 11 percent for billionaire Michael Bloomberg.” For the record, Biden has made statements that shows he doesn’t value the crucial role that oil and natural gas plays in our economy. Last year, he said: “I guarantee you we’re going to end fossil fuel and I am not going to cooperate with them. Before 2050, God willing.” He’s also shown he’s out-of-touch with oil and gas workers, including those who have transformed his home state of Pennsylvania. But voters felt more comfortable with Biden and firmly rejected Sanders’ radical agenda, that includes supporting a Green New Deal, banning fracking nationwide beginning in 2021 and criminally prosecuting energy
APRIL 2020
executives even though he doesn’t know which laws they allegedly violated. While Sanders underperformed with climate-focused voters on the national level, attempts to replace Members of Congress who support responsible oil and natural gas development with radical anti-energy platforms were also defeated. Super Tuesday also featured U.S. House primary contests in Texas where Rep. Henry Cuellar (D-Texas) faced a stiff challenge from a fellow Democrat. Cuellar represents the Eagle Ford Shale Play and is a strong supporter of oil and natural gas while his primary challenger, Jessica Cisneros, backs the Green New Deal and was endorsed by Rep. Alexandria Ocasio-Cortez (D-N.Y.). Politico reported that environmental activist groups poured money into an effort boosting Cisneros: “Liberal groups are laying a $1 million-plus bet that they can persuade voters in this oil-soaked corner of South Texas to elect a progressive, ‘Green New Deal’ supporter while ousting one of the Democratic Party’s most conservative members of Congress.” E&E News even asked if Cisneros is “the next Ocasio-Cortez,” which was a stark contrast to Cuellar’s acknowledgement of the importance of Texas’ oil and natural gas industry. As his campaign explained: “Oil and gas provides more than 100,000 well-paying jobs in the 28th, and local schools and governments rely on the sector for millions of dollars of revenue annually, he added. ‘You start taking away these things that produce revenue and fund schools, and we got problems.’” On Tuesday, Cuellar emerged victorious in the primary in a local rebuke against politicians who want to ban oil and natural gas production. Conclusion Super Tuesday showed the politicians with radical policies and the activist groups that support them don’t actually represent the majority of Americans – even those who prioritize energy, the environment, and climate change. Voters want reasonable, thoughtful solutions to these issues, – a lesson those candidates who are pushing for fracking bans and an end to natural gas usage learned the hard way this week.
OhioGas&Oil
9
U.S. Natural Gas Consumption
Sets New Record in 2019 U.S. Energy Information Administration
U.S. natural gas consumption by sector (2010-2019) billion cubic feet per day 90
80
other
70
commercial
60
residential
50 40
industrial
30 20
electric power
10 0 2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Source: U.S. Energy Information Administration, Natural Gas Monthly Note: Other includes lease and plant fuel consumption, pipeline and distribution use, and vehicle fuel consumption.
U.S. natural gas consumption increased by 3% in 2019, reaching a record of 85.0 billion cubic feet per day (Bcf/d), according to the U.S. Energy Information Administration’s (EIA) recently released Natural Gas Monthly. New natural gas-fired electric capacity and lower natural gas prices led the increase in domestic natural gas consumption. U.S. natural gas consumption grew in the electric power sector by 2.0 Bcf/d, or 7%, but remained relatively flat in the commercial, residential, and industrial sectors. Exports by pipeline to Mexico and as liquefied natural gas (LNG) grew by 0.5 Bcf/d and 2.0 Bcf/d, respectively. In 2019, the electric power sector consumed 31.0 Bcf/d, or 36%, of total domes10 OhioGas&Oil
tic U.S. natural gas consumption. Natural gas-fired electric capacity additions grew in 2019, especially in the PJM Interconnection, which serves the U.S. mid-Atlantic region. Natural gas continues to account for the largest share of electricity generation after first surpassing coal-fired generation on an annual basis in 2016. In 2019, natural gas accounted for 38% of total electricity generation, followed by 23% for coal and 20% for nuclear. New natural gas generation capacity additions have continued to displace coal-fired power plants; about 5% of the total existing U.S. coal-fired capacity was retired in 2019. Record continued on page 11
APRIL 2020
Record continued from page 10
Source: U.S. Energy Information Administration, Electric Power Monthly
Weather largely drives annual and monthly fluctuations in natural gas consumption. During the winter, U.S. natural gas consumption levels are at their highest because natural gas is the predominant fuel for space heating in the residential and commercial sectors. In 2019, demand for natural gas as a heating fuel was similar to 2018 demand. Natural gas consumption has a smaller peak in the summer when demand for air conditioning, and therefore electricity, is greatest. In the summer of 2019, relatively high temperatures increased electricity usage and natural gas consumption. The
United States set a monthly record for U.S. electric power sector consumption of 41.1 Bcf/d in July 2019, then surpassed that level to reach 41.6 Bcf/d in August. The electric power sector has been shifting toward natural gas in the past decade because of competitive natural gas prices and power plant technology improvements. Principal contributor: Kristen Tsai
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OhioGas&Oil 11
CELDF Ballot Measure Overturned Once Again Because “Unconstitutionally Vague” energyindepth.org It’s a never-ending cycle with the Community Environmental Legal Defense Fund’s unwillingness to accept defeat over the constitutionality of its far-reaching “Rights of Nature” initiatives. Almost exactly one year after Toledo voters eked out a ballot measure to enact the Lake Erie Bill of Rights (LEBOR), a federal judge has ruled that very passage invalid. U.S. District Judge Jack Zouhary recently said his decision on the measure, co-authored by anti-industry group Toledoans for Safe Water, was easy: “This is not a close call. LEBOR is unconstitutionally vague and exceeds the power of municipal government in Ohio.” A day after the February 2019 special election, farm owner Mark Drewes filed a lawsuit challenging the legality of LEBOR and quickly garnered support from the Ohio Farm Bureau. The suit claimed the citizen-led referendum would present farms, such as Drewes Farms, with massive liability
for farm’s fertilizer practices because they cannot guarantee prevention of all runoff from entering the Lake Erie watershed. Drewes argued that his fields’ fertilizer dosages are already in compliance with Ohio state law, the filing says, and the LEBOR ruling would put the 5th generation family farm at severe risk. Adam Sharp, Executive Vice President of the Ohio Farm Bureau said of Thursday’s decision: “It is as clear today as it was one year ago that LEBOR was invalid and counterproductive to the real measures being taken for clean water in Ohio. We commend Mark Drewes for taking on this battle on behalf of farmers throughout the Lake Erie Watershed and we appreciate Judge Zouhary’s thoughtful verdict on this important issue. We hope this decision can place the focus back on the efforts Ohio farmers CELDF continued on page 14
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U.S. Crude Oil Exports
Increased to Nearly 3 Million Barrels per day in 2019 U.S. Energy Information Administration 2018. This growth in U.S. crude oil exports was driven by increasing U.S. crude oil production, expanding domestic infrastructure, and increasing global demand for light, low-sulfur crude oils. The number of destinations for U.S. crude oil exports also increased from 41 to 44. Canada received the largest share of U.S. crude oil exports at 459,000 b/d (15%), followed by South Korea at 426,000 b/d (14%).
Source: U.S. Energy Information Administration, Petroleum Supply Monthly
U.S. crude oil exports averaged 2.98 million barrels per day (b/d) in 2019, up 45% (930,000 b/d) from
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Source: U.S. Energy Information Administration, Petroleum Supply Monthly
Conversely, U.S. crude oil exports to China, the third-largest export destination in 2018, fell by nearly 100,000 b/d to average 133,000 b/d in 2019, dropping China to the seventh-largest export destination in 2019. In the first half of 2018, the United States exported 389,000 b/d of crude oil to China, which made China the top destination for U.S. crude oil exports during that period. However, in the summer of 2018, trade negotiations between the United States and China and unfavorable prices led China to reduce imports of U.S. crude oil to an average of just 77,000 b/d. In 2019, the reduction of U.S. exports to China continued; U.S. crude oil exports to China averaged only 133,000 b/d in 2019 compared with 232,000 b/d in full-year 2018. Although U.S. exports to China declined in 2019, U.S. crude oil exports to other destinations increased, most notably to South Korea, the Netherlands, and India. Principal contributor: Mason Hamilton
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APRIL 2020
Learn more at www.reacpa.com/ohio-oil-gas
OhioGas&Oil 13
CELDF continued from page 12
are making to be part of the solution to water quality challenges.” This bill also faces significant challenges at the state level. Amanda Ferguson with the Ohio Attorney General’s environmental enforcement division said in the state’s perspective, Toledo’s power would be overreaching state authority, as the State of Ohio has constitutionally protected rights in ownership of the lake. Although the Toledo lawsuit was filed in response to concerns from farmers and fertilizer runoff, CELDF has pushed similar initiatives across Ohio and in other states using oil and natural gas as the primary target to push its agenda. Founder and Executive Director Thomas Linzey’s clearly laid out this agenda in a 2015 speech: “If you are going to put all that work into a ballot initiative, why not do a ballot initiative that bans all finance companies in New York City from funding new projects that exasperate climate change? Why not do something real…why not do something real…cause people are saying to themselves, ‘it would be illegal, it would be unlawful, it would be unconstitutional, because you are taking their property’ well..(expletive), it’s time.” (emphasis added) As a result of the continued push regardless of its legality, in Youngstown alone, taxpayers have voted against CELDF’s measures nearly a dozen times. As Reutersreported: “Linzey says his goal is not to write local laws that are popular, or stand up in court, but rather to trigger a public
debate about community rights to local self-government – even if it means a community ultimately falls into financial ruin.” A year ago, U.S. District Court Judge Susan Baxter ruled against Grant Township’s (Elk County, Pa.) claim for taxpayers to pay for the township’s legal fees during its attempts to ban a Class II injection well. In 2018, Judge Baxter even called out CELDF lawyers: “Attorneys Linzey and Dunne have pursued certain claims and defenses in bad faith. Based upon prior CELDF litigation, each was on notice of the legal implausibility of the arguments previously advanced…” “Despite their own prior litigation, CELDF and Attorney Linzey, in particular, continue to advance discredited arguments as a basis for CELDF’s ill-conceived and sponsored [Community Bill of Rights], and in doing so have vexatiously multiplied the litigation of this matter.” As EID has covered at length, CELDF’s constant battles (and losses) have become exceedingly burdensome for taxpayers. This ruling is just another loss to be added to the list of court challenges overturning LEBOR measures. We’ve been down this road before, but it seems as if CELDF refuses to give up – no matter the cost.
OHIO’S LEADING CHOICE IN
OIL AND GAS LAW Roetzel’s experienced Oil and Gas attorneys provide a wide array of legal services focused on landowner representation including: • Leasing and lease renewals, ratifications and amendments • Litigation, including: Lack of production, Dormant Mineral Act, Marketable Title Act • Pooling and unitization • Pipeline easements • Surface development • Mineral LLC’s • Royalty disputes
WO-10729003
For additional information, contact Dave Wigham at dwigham@ralaw.com or Tim Pettorini at tpettorini@ralaw.com.
GAS AND OIL TEAM MEMBERS: EMILY ANGLEWICZ, SARA FANNING, BEN FRAIFOGL, JEREMY MARTIN AND BRET MCNAB • 222 SOUTH MAIN STREET I AKRON, OH 44308 I 330.376.2700 • 121 NORTH MARKET STREET, 6TH FLOOR I WOOSTER, OH 44691 I 330.376.2700
14 OhioGas&Oil
APRIL 2020
OHIO WELL ACTIVITY by the numbers
UTICA SHALE
MARCELLUS SHALE 26 10 6 35
77
Wells Permitted Wells Drilling Wells Drilled Not Drilled Wells Producing Inactive Other Total Horizontal Permits
Data as of 3/7/20
478 110 165 2451
3204
Wells Permitted Wells Drilling Wells Drilled Not Drilled Wells Producing Inactive Plugged Total Horizontal Permits
Source: Ohio Department of Natural Resources
“We Always Have Time For You”
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87 STEUBENVILLE AVE., CAMBRIDGE
Turn key ready. Well maintained full service restaurant of 70 years which features its own bakery,ice cream soda fountain,banquet room and pickup window. Located on busy state route with high visibility and has ample parking. Located 5 minutes to downtown area. Dining room sits approximately 70 and upstairs banquet room sits approximately 40. Seller will consider short term land contract. $149,999. Call Kurt Ragsdale @ 740-704-1294
Is Location Important? You bet, especially in the restaurant business. Location can make or break a restaurant, and this restaurant location has everything! Property is home to an established, up-and-running 2,650-square-foot restaurant and is easy for in-town and outof-town drivers to access without fighting traffic. Plenty of user-friendly parking with some 30 spaces in the rear,five on the side and six in front.The Ideal restaurant location! $695,000. Call Donna Sikora @ 740-685-5579
Mostly income describes this property. Owner completely transformed this property and built it into a good income property. Storage units 4 big units that rent for $110.00 a month (currently 100% occupied). 5 smaller units that rent for $60.00 a month (1 open unit). Business is currently leasing commercial building behind the storage units for $1000.00 a month. $249,000. Call Jerry Boyer @ 740-680-0979
We also have just over 2 acres for sale that would make a great commercial property on Rt 209 ( 61024 SOUTHGATE) in the vicinity of Walmart. $385,000. Call our Cambridge office @ 740-439-1111
CAROL GOFF & ASSOCIATES OPERATES 13 OFFICES. COVERING 15 COUNTIES IN SOUTHEASTERN & CENTRAL OHIO We are a full service Real Estate company handling both buyers and sellers of residential, commercial, farms, acreage and investment properties. We also offer auctioneering services and appraisals. CJ-10728528
APRIL 2020
Visit us at www.carolgoffrealestate.com OhioGas&Oil 15
TOP COUNTIES WITH HORIZONTAL DRILLING ACTIVITY BY NUMBER OF SITES
1. Belmont County.........681 2. Carroll County......... 528 3. Harrison County....... 502 4. Monroe County........ 498 5. Guernsey County...... 280 6. Jefferson County...... 269 7. Noble County.......... 227 8. Columbiana County...163 9. Mahoning County....... 29 10. Washington County... 21 11. Tuscarawas County.... 20 12. Portage County........ 15 Trumbull County........ 15 13. Stark County............ 12 14. Coshocton County....... 5 15. Muskingum County...... 4 Holmes County........... 3 16. Morgan County.......... 2 Knox County.............. 2 17. Ashland County.......... 1 Astabula County......... 1 Geauga County.......... 1 Medina County........... 1 Wayne County............ 1 I VARIOUS SSTAGES: PERMITTED DRILLING, ,D WELL SITESS IN PLETED PRODUCING, PRODUCINGPLUGGED, PLUGGED DRILLED, COMPLETED, SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF D L A 3/7/20
16 OhioGas&Oil
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