February 2020
A Free Monthly Publication
SURVEY: 78% OF OHIOANS SUPPORT STATE’S GROWING OIL, NATURAL GAS INDUSTRY
STATE OF AMERICAN ENERGY 2020:
AMERICA EMBRACES GLOBAL ENERGY LEADERSHIP IN THIS ISSUE: NO LIMITS - GUEST EDITORIAL
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NEWS. BUSINESS. TECHNOLOGY. ALLIANCE Mindy Cannon 330.821.1200
CAMBRIDGE Paul Reynolds 740.439.3531
OHIO’S GAS & OIL INDUSTRY RAVENNA Jim Williams 330.298.2002
WOOSTER Aaron Bass 330.264.1125
Table of Contents FEBRUARY 2020 G ROUP PUBLISHER Bill Albrecht
EXECUTIVE EDITOR Beth Bailey bbailey@daily-jeff.com
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A Look Ahead Gas & Oil Events
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Survey: 78% of Ohioans Support State’s Growing Oil, Natural Gas Industry
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Oil and Gas Industry Partners with Ohio’s First Responders
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ODNR Seeking Well Pluggers
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State Of American Energy 2020: America Embraces Global Energy Leadership
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Natural Gas Prices in 2019 Were the Lowest in the Past Three Years
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What are your Limits in 2020? Maybe None - Guest Editorial
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Ohio Well Activity
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Horizontal Drilling Activity Graph
FEBRUARY 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
On The Cover:
The state of American energy in 2020 is one of global leadership, according to American Petroleum Institute president and CEO Mike Sommers. In the past decade, the oil and natural gas industry has revolutionized the global energy markets and now leads the world in energy development, carbon emissions reductions, and environmental performance. The United States is a net exporter of energy for the first time since the 1950s and has increased American oil production to a staggering 12 million barrels per day – all while decreasing emissions, according to API’s annual State of American Energy report. FEBRUARY 2020
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
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A Look Ahead
Gas & Oil Events FEBUARY 7, 2020
OHIO GEOLOGICAL SOCIETY, 22ND ANNUAL WINTER GALA Hilton Doubletree, 175 Hutchinson Ave, Columbus Ohio 43235
at the Hilton Columbus at Easton for March 3, 2020 - March 6, 2020. Event attendees calling for reservations should indicate that they are attending the 2020 OOGA Annual Meeting or mention code “OOG” to receive the reduced rate.
FEBUARY 18-19, 2020 MARCH 11-13, 2020 24TH ANNUAL OHIO ENERGY MANAGEMENT CONFERENCE
The Columbus Renaissance Hotel 50 North Third Street, Columbus, OH 43215 Register online at www.MECseminars.com At the 24th Annual Ohio Energy Management Conference, you will obtain valuable information on the ‘market transformation, the rapid pace of change’ and how to better manage your energy costs. Among the features of the 2020 conference is, again, a plethora of best practices and case studies from Ohio companies and their awarding-winning, leading-edge initiatives in energy reduction and efficiency.
FEBUARY 20, 2020
OHIO GEOLOGICAL SOCIETY LUNCH SYMPOSIUM NATURAL GAS LIQUIDS STORAGE IN OHIO’S UNDERGROUND SALT DEPOSITS Hilton Doubletree, 175 Hutchinson Ave, Columbus Ohio 43235 Lunch at 11:30, talk at 12:30 pm
MARCH 4-6, 2020
OHIO OIL AND GAS ASSOCIATION’S 2020 ANNUAL MEETING
Hilton Columbus at Easton 3900 Chagrin Dr Columbus, Ohio 43219 Save the Date! More info regarding the event coming soon. LODGING A block of rooms has been reserved
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OHIO SAFETY CONGRESS & EXPO
Greater Columbus Convention Center Columbus, Ohio The Ohio Safety Congress & Expo, now in its 90th year, is the secondlargest occupational safety, health, and workers’ compensation event in the U.S. Last year’s event attracted more than 8,000 attendees from Ohio businesses and government, and more than 300 exhibitors. For three days, OSC 2020 provides world-class workplace safety and health education, in-depth workshops, live demonstrations and much more. The Expo Marketplace, with more than 300 exhibitors on hand, will be abuzz with energy throughout the event. www. ohiosafetycongress.com
APRIL 1, 2020
PIOGA - 2020 SPRING MEETING
Rivers Casino, Pittsburgh, PA Save the Date! Plan to join us on Wednesday, April 1, at Rivers Casino on Pittsburgh’s North Shore as we explore oil and gas industry hot topics that will provide you with the knowledge you need to succeed in these changing times for our business.
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
SOOGA - 2020 2020 SPRING GOLF Lakeside Golf Course Beverly, OH
APRIL 23, 2020
SOOGA - 2020 SPRING MEMBERSHIP MEETING Marietta Shrine Club Marietta, OH 45750
MAY 2-3, 2020 FEBRUARY 2020
SURVEY:
78% of Ohioans Support State’s Growing Oil, Natural Gas Industry NICOLE JACOBS | EnergyInDepth Ohioans support continued oil and natural gas development in the Buckeye State, according to new surveys commissioned by the Ohio Oil & Gas Energy Education Program. An impressive 78 percent of respondents said they support oil and natural gas development in the Ohio River Valley, while 88 percent acknowledged this development is important for their communities. As OOGEEP Executive Director Rhonda Reda said: “Ohioans understand how safe and environmentally responsible shale development is creating local, well-paying jobs and generating new opportunities for manufacturing and economic growth.” One survey included 400 registered voters in eight southeastern Ohio counties, and found strong support for shale development across all ages and political affiliations. The results are consistent with another OOGEEP-commissioned statewide survey of 2,102 conducted earlier this year that found 80 percent of residents view the industry as a job creator and means to stimulate economic growth. Record Quarter for Oil and Natural Gas Production Benefits Residents, Businesses The survey results come on the heels of the Ohio Department of Natural Resources’ release of its third quarter 2019 production data showing the state again broke quarterly production records. Compared to the same quarter in 2018, natural gas production increased by more than 11 percent, while oil production went up nearly 30 percent. This record production is significantly benefiting local businesses and residents. For instance, an Ohio Oil & Gas Association and Energy In Depth report from November found that eight of the state’s top shale counties have collectively received nearly $142 million in real estate property taxes on oil and natural gas production since 2011. One hundred percent of this tax revenue goes back to the counties, municipalities and school districts where the wells are located. The benefits are also being felt outside of these shale counties. As Reda explained: “Voters recognize that shale development creates significant cost-savings for consumers and small businesses while employing 200,000 Ohioans, and strengthens our national security as well as communities across the state.” FEBRUARY 2020
A 2019 report by OOGEEP and Shale Crescent USA found that increased U.S. shale production – driven by the Appalachian Basin or Shale Crescent region of Ohio, Pennsylvania and West Virginia – has saved consumers more than $1.1 trillion over the past decade. That’s about $4,000 per household and represents billions of dollars in savings for manufacturers. Additionally, Cleveland State University recently reported that total shale-related investments in Ohio have reached nearly $78 billion since 2011. Such investments are a major reason why 47 percent of the OOGEEP survey’s respondents in southeast Ohio said “natural gas and oil development will play the biggest role in the future of the state’s economy.” That’s 30 points higher than the next closest industry. Natural Gas Helping Ohio Reduce Emissions The economic benefits of such prolific development have not come at the expense of the environment, a fact that survey respondents also acknowledged: 83 percent of voters said the oil and natural gas industry is “producing energy in cleaner and more efficient ways.” Data show they’re right. Methane intensity in the Appalachian Basin – the amount of methane emitted per unit of production – decreased 82 percent at the same time that natural gas production skyrocketed in the region. The switch to natural gas in U.S. power generation has resulted in 57 percent greater carbon emissions reductions than wind and solar combined since 2005. Greenhouse gases are at their lowest levels since 1992, and the Appalachian Basin has helped to spearhead the decreases in U.S. carbon emissions and the key pollutants that impact health like sulfur dioxide. Oil and natural gas are being produced across the country in cleaner, more efficient ways that are benefiting U.S. residents and reinvigorating businesses. Ohio’s voters are witnessing this first hand, OOGEEP’s surveys show.
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Oil and Gas Industry
Partners with Ohio’s First Responders Ohio firefighters learn unique skills
ANGELA SNYDER | The Ohio Oil and Gas Energy Education Program (OOGEEP) They train to protect our lives and our properties and for some Ohio firefighters, they also are trained for the rare occasion of responding to situations in an oil or natural gas field. As Ohioans benefit from the dramatic growth of oil and natural gas production, it is important to know that safety standards and special instruction for first responders keeps pace with this growth. The Ohio Oil and Gas Energy Education Program (OOGEEP) provides oil and gas field trainings for firefighters at no cost.
field Emergency Response Training program is unique in the nation and it continues to evolve as the industry grows and safety technologies advance,” he said. During the multi-day training, participants experience classroom presentations, virtual reality tabletop exercises and live outdoor behavior labs. Trainings are held at the Wayne County Fire & Rescue Regional Training Facility in Apple Creek. To date, the program has provided training to more than 1,600 Ohio firefighters, as well as firefighters from seven other states. “Ohio’s fire professionals have a tremendous resource with the OOGEEP field training program,” said Chief Jim Delman, Sunset Heights Fire Department (Belmont County). “The quality of this training is exceptional. Firefighters invest a significant amount of time and energy to improve their skills and grow their abilities for various situations. Oil and gas field emergencies are rare, but it is critical that firefighters know the special response techniques necessary. “Opportunities such as the OOGEEP training program benefit not only the firefighter, but also their department, and the communities they serve,” Chief Delman added. “Once they are familiarized with the oil and gas industry, they more at ease knowing how to properly and safely address any situations that Chief Brent Gates, of the New Concord Fire Depart- may arise.” ment (Guernsey County), serves as the lead fire inOOGEEP continued on page 5 structor for OOGEEP’s Oilfield Emergency Response Training program, along with more than 15 state- certified instructors with more than 500 years of combined experience in the oil and gas industry and/or fire service. “OOGEEP and our team of instructors offer a comprehensive training specific to Ohio’s growing energy industry,” Chief Gates said. “Participants not only learn hands-on response techniques, but they also learn about the industry itself, including how natural gas and oil are explored, drilled, produced and transported, and the importance of collaborating with the industry. Chief Gates added that as Ohio’s natural gas and oil industry continues to expand, so will the commitment to safety and preparedness for firefighters. “The Oil-
“OOGEEP and our team of instructors offer a comprehensive training specific to Ohio’s growing energy industry”
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FEBRUARY 2020
OOGEEP continued from page 4
ments in 15 counties joined peers from across Ohio during the most recent Oilfield Emergency Response Training sessions which were held October 5-6 and November 2-3 at the Apple Creek facility. For more information on OOGEEP’s available programs for firefighters, please visit: https://www.oogeep.org/firefighters/.
The Ohio Oil and Gas Energy Education Program (OOGEEP) is a non-profit statewide education and public outreach program. Created in 1998, OOGEEP provides a variety of programs throughout the State of Ohio. These programs primarily focus on teacher workshops, scholarships, science fairs, firefighter trainings, industry safety trainings, career and work“The Oilfield Emergency Response Training pro- force development, research and guest speaker program started 19 years ago,” said Rhonda Reda, OO- grams. GEEP Executive Director. “It was a pioneering effort that has grown into one of the nation’s premier emergency response programs. Ohio’s oil and gas produc-
“Opportunities such as the OOGEEP training program benefit not only the firefighter, but also their department, and the communities they serve” ers are proud to offer this critical training at no cost to our emergency responders, and to support our fire professionals in a variety of ways.” Firefighters and first responders from 26 depart-
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ODNR
Seeking Well Pluggers SHANE HOOVER | The Canton Repository, Gannett The Ohio Department of Natural Resources is still seeking contractors to plug the state’s backlog of orphan and idle wells. ODNR’s Division of Oil and Gas Resources Management wants to award up to $25 million in contracts to plug some 200 wells before the fiscal year ends in June. Contractors who wish to bid have until Jan. 20 to be certified through the state’s Department of Administrative Services. ODNR spokesman Adam Schroeder said the Division of Oil and Gas Resources Management has been focused on enlarging the pool of contractors eligible to bid. “We certainly have budget dollars in the Orphan Well Program to plug more wells and there’s definitely an inventory of wells to be plugged,” Schroeder said. “So, the more contractors we can have bidding on these projects, the better.” Orphan wells are oil and gas wells that weren’t plugged properly in the past and don’t have an owner who could pay to have them plugged now. The wells are health and environmental hazards because they can leak oil, natural gas and brine, and even cause explosions when natural gas collects in a building near a leaking well. Orphan wells in Ohio have been found under a school, next to houses, in farm fields and even under a reservoir. ODNR has identified nearly 1,000 orphan wells in 71 counties. (Stark has seven while Summit has nine, Carroll has 13, Wayne has 10 and Tuscarawas has three.) But the actual number of orphan wells is unknown. ODNR estimates more than 280,000 wells have been drilled in the state since the mid-1800s. The state started plugging orphan wells in the 1970s, and uses a percentage of the fees and taxes collected on oil and natural gas production to hire contractors. Today, the plugging program has more money than ever. Utica and Marcellus shale drilling has generated more taxes and fees in recent years, and in 2018 state lawmakers increased the percentage of those collections allotted to the Orphan Well Program. The plugging budget went from $15 million in fiscal year 2019 to almost $25 million this fiscal year and is on pace to have $28 million in fiscal year 2021.
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Contractors have from six months to a year to complete a job. The cost to plug a well varies widely, depending on the well’s depth, location and the difficulty of the job, but most contracts exceed $50,000. ODNR hosted meetings in Summit and Guernsey counties in September to encourage more contractors to get involved in the plugging program. So far, 29 contractors have been certified, although some have never bid on a plugging job, Schroeder said. The certification process opens about once a year and ensures the companies have the proper licenses ODNR continued on page 7
The state’s orphan well program plugged this well beneath the gym at Lorain’s Admiral King School in 2014. The state has almost 1,000 known orphan wells, but the actual number is likely much higher. Photo courtesy Ohio Department of Natural Resources FEBRUARY 2020
ODNR continued from page 6
and bonds, he said. Once approved, contractors are eligible to bid on contracts. During the meetings in September, contractors suggested they would be more inclined to bid if they knew which wells ODNR planned to plug over the next several years. The state has not been able to release its plugging schedule more than a year in advance, but it has started to package more wells into single contracts to make the jobs more attractive to bidders, Schroeder said. The plugging program gives priority to orphan wells that pose the highest risk to health and safety, but ODNR has been revising a program that would allow landowners to contract with a plugger, who would be paid by the state. The provision would allow a landowner to plug a low-risk well sooner than the state would get to it, but the landowner would take responsibility for making sure the project was done according to regulations. Schroeder said the landowner program wasn’t yet running, but would be soon. “We think that will also increase the number of wells getting plugged each year,” he said.
Pipe removed from an orphan well in Amsterdam, Ohio. The well was drilled in 1940 and contaminated a water well used for cattle. The Ohio Department of Natural Resources plugged the well in 2015. CantonRep.com file photo
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STATE OF AMERICAN ENERGY 2020:
AMERICA EMBRACES GLOBAL ENERGY LEADERSHIP NICOLE JACOBS | EnergyInDepth The state of American energy in 2020 is one of global leadership, according to American Petroleum Institute president and CEO Mike Sommers. In the past decade, the oil and natural gas industry has revolutionized the global energy markets and now leads the world in energy development, carbon emissions reductions, and environmental performance. The United States is a net exporter of energy for the first time since the 1950s and has increased American oil production to a staggering 12 million barrels per day – all while decreasing emissions, according to API’s annual State of American Energy report. Here are a few of the key takeaways from this year’s report: #1 Decreasing Emissions Thanks to technological innovation, the oil and natural gas industry has made major progress toward reducing emissions, while continuing to increase production. According to the EIA, natural gas has reduced carbon emissions in the United States by more than 2.8 million metric tons of carbon dioxide since 2005, making it the largest source of energy-related carbon savings. In addition, the industry is working diligently to reduce methane emissions. Seventy of the nation’s leading energy companies voluntarily participate in the Environmental Partnership, a collaborative initiative that has decreased methane leakage rates across their operations to only 0.16 percent – 10 times lower than U.S. Environmental Protection Agency estimates. API’s State of American Energy, echoed the effects of the industry’s commitment to decrease their environmental footprint over the last 30 years:
#2 Technological Innovation and Diversity API’s panel discussion Tuesday focused on the importance of innovation and attracting new talent to the industry that will continue to drive progress through the next decade and beyond. As Karen Kerrigan, President and CEO of the Small Business & Entrepreneurship Council, explained, “Diversity fuels innovation, which will only help in
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terms of taking our industry – the energy industry – to the next level.” Petroleum Equipment & Services Association President Leslie Beyer echoed this sentiment, outlining some of the major technological advancements currently underway in the oil and natural gas industry and its potential to attract new, diverse talent: “So many companies are investing in carbon capture, sequestration. Many companies – oil fuel service companies, operators, IOC’s – are investing in collaboration with renewable technologies. Again, the oil fuel service companies, which are really energy technology companies are investing in water recycling and reuse, automation, AI… There are technologies being developed that are going to continue to make sure that the U.S. can keep the position that we’ve retained through the shale revolution, but also really be able to attract a new workforce that’s going to keep us there.” #3 Ongoing Benefits of the Shale Revolution – Here and Abroad As TV host and skilled trades advocate Mike Rowe described, the benefits of the shale revolution touch every American: “Energy is always is always in the room… Every single American is relying on it.” By producing more at home, the United States has reduced its dependence on foreign energy and decreased its vulnerability to supply chain disruptions. America’s newfound energy dominance “offers stability in chaotic times and insulated America from hostile and unreliable supplies of energy,” according to Sommers. In fact, the Global Energy Institute recently announced that energy security risk in the United States has reached its lowest point since 1995. However, as Sommers explained, “if you want to know the true value of America energy leadership in 2020, you also need to zoom in” to see how American energy “is powering the lives of individuals across our nation.” The benefits of the American shale revolution are reverberating across the country – from Appalachia, to the Midwest, to the Rocky Mountains of Colorado and the plains of New Mexico. As Terry O’Sullivan, General President of the Laborers’ International Union of North America (LIUNA), said: “These kind of energy jobs are a pathway to the midLeadership continued on page 9
FEBRUARY 2020
Leadership continued from page 8
dle class. They provide hope, opportunity, good wages, with good benefits.” Here are some of the local impacts highlighted in the report: • In Pennsylvania’s 17th Congressional District, the natural gas, oil and petrochemicals industry supports over 18,000 jobs and adds more than $1.78 billion to the district’s economy each year. • Since 2017, the oil and gas sector has supported approximately 30,000 jobs in Colorado, added $13.5 billion to the state’s economy, and provided 81% of all disbursements made to the state’s public education trust. • In New Mexico’s 2nd Congressional District, the oil, natural gas, and petrochemicals industry employs over 27,000 people and is responsible for nearly 20% of the district’s total economy.
Today The U.S. Is No.1 In The World In Natural Gas And Oil Production But Ending Hydraulic Fracturing Would Mean: $900 Billion increase in U.S. Household energy costs through 2030 $6.3 Trillion less for families to spend on priorities $7.1 Trillion in potential losses to the U.S. economy by 2030 Up to 7 3 Million fewer U.S. jobs by 2022
• In Michigan’s 8th Congressional District, the industry supports more than $1 billion in labor income and contributes more than $1.7 billion to district’s overall economy.
The U.S. would import 40% of our oil and petroleum products by 2030 and 29% of our natural gas by 2030
• Minnesota’s oil and natural gas industry supports more than 117,000 jobs, representing more than 3% of the state’s total employment in 2015, and is helping manufacturers to flourish.
Even with more renewables. the U.s. would use more coal to generate electricity. with a 40% Increase In coal generation over today
#5 Continued growth • In Virginia’s 2nd Congressional District, the oil Despite this increasing political pressure, energy deand natural gas industry directly adds $122 million mand continues to rise domestically and abroad. With in labor income and ensures reliable energy for the global energy demand projected to increase more than large military presence there. 45 percent by 2050, continued infrastructure investment – to the tune of more than $1 trillion through • Sand mining has made a comeback in Wiscon- 2035 – and sound policies to support responsible exsin thanks to the shale revolution, and the oil and pansion “will ensure that our abundant, homegrown natural gas industry adds more than $1.5 billion an- energy reaches American households, businesses and nually to the 3rdCongressional District’s economy U.S. trading partners.” annually. As Sommers concluded, As Sommers explained in the report, “The nation with the largest and most innovative “Across our country, communities have felt the posi- economy in the world runs on affordable and reliable tive impact of the abundance of American energy. energy, the majority of which comes from natural gas From decreased energy costs for families to increased and oil. Our mission as an industry starts with meeting investments in school systems and infrastructure, that rising demand and doing it responsibly. We are Americans benefit from the economic growth driven relentless in finding and producing affordable energy. by the U.S. natural gas and oil industry.” And just as persistent in reducing our environmental #4 Political Obstacles footprint, improving safety technology, and decreasThe industry continues to face pushback by those ing emission rates. But we’re not finished.” who seek to ban fracking, despite its irrefutable contribution to local economies, national security, and the United States’ ability to meet global emissions targets. API aptly summed up the dangers of such extreme and misinformed policies in one succinct graphic:
FEBRUARY 2020
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Natural Gas Prices in 2019 Were the Lowest in the Past Three Years VICTORIA ZARETSKAYA | U.S. Energy Information Administration
Source: U.S. Energy Information Administration, based on Refinitiv
In 2019, natural gas spot prices at the national benchmark Henry Hub in Louisiana averaged $2.57 per million British thermal units (MMBtu), about 60 cents per MMBtu lower than in 2018 and the lowest annual average price since 2016. Lower natural gas prices in 2019 supported higher consumption—particularly in the electric generation sector—and higher natural gas exports. Continued growth in domestic production of natural gas also supported lower natural gas prices throughout the year. Monthly average natural gas prices at most key regional trading hubs in 2019 reached their highest levels in February, and they were relatively low and stable from April through December. In the Northeast, additional imports of liquefied natural gas
(LNG) into New England limited price spikes during the winter of 2018–19. Despite a cold snap in the Midwest in February 2019, natural gas prices at Chicago Citygate were lower than during previous extreme weather events. However, in the Pacific Northwest, unseasonably cold weather at the end of winter coupled with regional supply constraints and decreased storage inventories led to significant price spikes at the Northwest Sumas hub in March.Additional pipeline takeaway capacity in the Permian region eased some infrastructure constraints and increased regional prices at the Waha hub in western Texas after six consecutive months of prices lower than $1/ MMBtu (March through August). Prices continued on page 11
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Prices continued from page 10
Source: U.S. Energy Information Administration, based on Natural Gas Intelligence
Natural gas consumption in the residential and commercial sectors increased by 2% in 2019 compared with 2018, based on the U.S. Energy Information Administration’s (EIA) monthly data through October and estimates for November and December. Natural gas use in the electric generation sector also increased
in 2019, particularly in July and August when a heat wave in the Midwest and the Northeast led to record-high generation by natural gas-fired power plants. Lower summer natural gas prices, which averaged $2.33/MMBtu in June through August (the lowest summer average Henry Hub natural gas price since 1998),
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have supported higher natural gas-fired generation in the summer months. Dry natural gas production has grown every year since 2016. Production increased by 7.5 billion cubic feet per day (Bcf/d) (9%) through the first 10 months of the year after record growth in 2018. Sustained growth in natural gas production put downward pressure on prices, which continued to decline for most of 2019. Natural gas storage inventories ended the withdrawal season at the end of March at their lowest levels since 2014. However, record natural gas production growth supported near-record injection activity during the injection season through October. The injection season ended with the second-highest net injection volume since 2014. Most new pipelines placed in service in 2019 were located in Lowest continued on page 13
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OhioGas&Oil 11
What are your Limits in 2020?
Maybe None Guest Editorial
GREG KOZERA | Shale Crescent USA
WO-10720191
I was walking around the house the other day looking for my walker. I asked my wife if she knew where it was. “It looks like you don’t need it.” was the reply. Lynnda is partially right. I gave up the wheelchair for the walker two weeks ago. I can walk without any support easily for short distances. I’m still using the walker for going to the grocery store, the movie theatre or church. Things progressed rapidly on my recovery when I could finally put weight on my legs three weeks ago. One of many things I have learned from this injury is, we are more capable than we think we are. The doctor who was instrumental in determining my real problem, told me my age was a factor in the injury,
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then added, “Never let anyone tell you that you are too old for anything. There are no limits” I believe he is right. I saw a story on the evening news tonight about a 98-year old woman who is a world champion swimmer. She started swimming at age 65. Alex Trebek at 79 has hosted Jeopardy for over 30 years and 8,000+ shows. He starts work at 5:30 AM and just finished remodeling part of his house. He has a passion for what he does. Age is just a number whether you are young or older. It doesn’t say much about your limitations. That is up to you. Over the years I have been blessed to coach young people. I have been a Regional Manager and a Sales Manager coaching my team members. I learned people can achieve much more than they think. They just need a little encouragement and someone to believe in them. Once they believe in their own capabilities incredible things happen like winning state championships, quadrupling sales revenues or achieving zero accidents and injuries. In all these cases I didn’t need to teach a lot of new skills. My daughter believed I could run a half marathon before I did. Her belief in me and encouragement got me through the training for the first race. That is over 40 half marathons ago. People have to believe the goals they want are achievable for them. When I was in physical therapy, the therapists told me they have a pretty good idea what their patients are capable of. The challenge they say is convincing the patient. Once the patient believes success follows. At Shale Crescent USA, our Team knows the goal is creating high wage jobs and raising the standard of living for people in this Region. We know it is a marathon not a sprint. We expect success. We just sent out New Year’s greetings to our prospects and leads here in the USA and around the world, with an excerpt of a recent article. We wanted to touch them all one more time in 2019. Many of them took the opportunity to respond to us. We created a positive dialog. We expect 2020 to be a very good year for the Region. I have written goals for all areas of my life. Our children and grandchildren all live out of state since they couldn’t find jobs here. One of my written goals is a specific number of quality visits. We have a planned vacation with each family, otherwise we have no idea Limits continued on page 14 FEBRUARY 2020
Lowest continued from page 11
the South Central and Northeast regions. These pipelines provide additional takeaway capacity out of the Permian and Appalachian supply basins and will serve growing demand for LNG exports, pipeline exports to Mexico, and U.S. natural gas-fired power generation. In 2019, natural gas exports— both by pipeline to Mexico and as LNG—continued to grow. U.S. natural gas exports to Mexico by pipeline averaged 5.1 Bcf/d in the first 10 months of 2019, 0.4 Bcf/d more than the 2018 average. Following an expansion in U.S. crossborder pipeline capacity, several new pipelines in Mexico continued to experience delays, limiting growth in exports. U.S. LNG exports set a new record in 2019, averaging an estimated 5.0 Bcf/d (69% higher than in 2018) as theUnited States became the third-largest global LNG
exporter. Several new LNG facilities were placed in service in 2019. Louisiana’s Cameron LNG placed its first liquefaction unit (referred to as a train) in service in May. Texas’sFreeport LNG exported its first cargo from the newly commissioned Train 1 in September, followed by its first export cargo
from Train 2 in December. Corpus Christi LNG (also in Texas) commissioned its second train in July. In December, Georgia’s Elba Island placed in service the first three of its moveable modular liquefaction system (MMLS) units and exported its first LNG cargo.
Source: U.S. Energy Information Administration, Natural Gas Monthly and Short-Term Energy Outlook
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
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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, PATRICK HANLEY, 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
FEBRUARY 2020
OhioGas&Oil 13
Limits continued from page 12
how most of the visits will happen. We have been working to bring a foreign company to our Region that turns plastic waste into a pellet. The pellet when added to concrete makes it lightweight and stronger. Lynnda and I traveled to New Jersey to see a pilot project and to meet with the CEO and his chief technical officer. It was a beneficial for us to understand their process and to know that it works. We have an important meeting with them this month. They will bring good jobs to the Region and reduce plastic waste. Our youngest son and his family live in Maryland on the way to New Jersey. We left early to have dinner and spend the night with them. As a bonus one of our granddaughters happened to have a riding lesson. We had the rare opportunity to watch her ride. Knowing we want to spend time with our children and grandchildren it is amazing how the opportunities present themselves. What are your expectations for 2020? What will your life or your organization look like a year from now. Do you expect to be successful and happy or miserable and a failure? Why not aim high in 2020 and expect happiness and success. When we aim high we don’t always reach the ultimate goal but even if we fall short we are still in a much better place than expecting the worst.
I challenge you for 2020 to think about what my doctor told me. There are no limits except those we choose to put on ourselves. What would you do if you knew you could not fail? If you took action what is the worst thing that could happen? What is the best thing that could happen? If you can live with the worst and if the best moves you closer to your goals why not go for it. Over the years I have seen individuals and teams do incredible things. It all started with the belief that they could. Why not you? I believe you are capable of the incredible maybe even the impossible. Believe in yourself. You may be surprised. You are better than you think. Thoughts to ponder. © 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.
Williams Toyota Lift
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9462 Main Ave SE East Sparta, Ohio 44626 14 OhioGas&Oil
Phone (330) 866-2121 Fax (330) 866-3701 FEBRUARY 2020
OHIO WELL ACTIVITY by the numbers
UTICA SHALE
MARCELLUS SHALE 25 10 9 32
76
Wells Permitted Wells Drilling Wells Drilled Not Drilled Wells Producing Inactive Other Total Horizontal Permits
Data as of 1/4/20
473 158 128 2423
3182
Wells Permitted Wells Drilling Wells Drilled Not Drilled Wells Producing Inactive Plugged Total Horizontal Permits
Source: Ohio Department of Natural Resources
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60918 SOUTHGATE RD., CAMBRIDGE
Building was a bowling alley, all equipment has been removed. Property has 9 acres. Located on the most popular roadin Guernsey Co. The building has over 22,000 SQ FT. and has a paved parking lot with room for approx 100 cars. Owner want to sell this property so don’t be afraid to look and make a reasonable offer. $1.8M.
Investment opportunity in high traffic location across from Walmart; located at dead end cul-de-sac with public utilities, property is zoned Commercial. Conveniently located within 1 mile of I 70 Cambridge Exit 178 and minutes from 70/77 Interchange. Over six acres of land available with 2000 sq ft & 5400 sq ft buildings on site. Property is level for lay down yard and/or parking. Additional acreage available. All units are occupied with lease information available upon request. $750,000.
Commercial land & building with high traffic across from Walmart, 7.5 acres, previous businesses include: Drive thru carryout, beauty salon, tanning business, storage units, great location for oil & gas business just south of I70 & I77. 30 x 80 metal building attached to office building. Building and land can also be leased separately or together. $889,000.
Call Harry Hitchcock @ 740-705-2388
Call Becky Jeffery @ 740-260-2384
Call our Cambridge office @ 740-439-1111
Great commercial office with 1226 SQ Ft. 5 Offices, 1 conference room, 1 file room, lobby and restroom. All carpeted, full basement, gas, C/A. Gravel parking lot with room for 10 vehicles. $195,000.
Call our Cambridge office @ 740-439-1111
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-10709717 CJ-10718400
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Visit us at www.carolgoffrealestate.com OhioGas&Oil 15
TOP COUNTIES WITH HORIZONTAL DRILLING ACTIVITY BY NUMBER OF SITES
1. Belmont County.........678 2. Carroll County......... 526 3. Harrison County....... 496 4. Monroe County........ 493 5. Guernsey County...... 280 6. Jefferson County...... 262 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 S IN I VARIOUS SSTAGES: PERMITTED DRILLING, ,D WELL SITES PLETED PRODUCING, PRODUCINGPLUGGED, PLUGGED DRILLED, COMPLETED, SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF D L A 1/4/20
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The nation’s premier source of energy information
The U.S. Energy Information Administration collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and its interaction with the economy and the environment. www.eia.gov
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