September 2020
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NATURAL GAS POWERS OSU TO A SUSTAINABLE FUTURE IN THIS ISSUE: HOW AND WHAT ARE YOU THINKING? - GUEST EDITORIAL
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NEWS. BUSINESS. TECHNOLOGY. ALLIANCE Sheila Casler 330.580.8421
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OHIO’S GAS & OIL INDUSTRY RAVENNA Elie Stephan 330.996.3093
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Table of Contents SEPTEMBER 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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Natural Gas Powers OSU to a Sustainable Future
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U.S. Liquefied Natural Gas Exports Remain at Low Levels this Summer
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How and What are You Thinking? - Guest Editorial
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The Coordinated Attack on Ohio’s Natural Gas
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Partner in Multibillion-Dollar Petrochemical Plant Project Backs Out
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Shale Well Gas Production Drops
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AGA Commends Senate Passage of Pipeline Safety Reauthorization
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Ohio Well Activity
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Horizontal Drilling Activity Graph
On The Cover:
Ohio State said its proposed combined heat and power plant would support the innovation district planned lor the West Campus area and decrease the university’s carbon footprint. [Doral Chenoweth III/ Columbus Dispatch]
SEPTEMBER 2020
SEPTEMBER 2020 ADVER TISING Elie Stephan Akron & Kent, Ohio Offices estephan@localiq.com 330-996-3093 Sheila Casler Alliance & Minerva, Ohio Offices scasler@localiq.com 330-580-8421 Aaron Bass Ashland, Ohio Office abass@localiq.com 419-281-0581 Heather Kritter Cambridge, Ohio Office hkritter@localiq.com 614-583-5793 Aaron Bass Wooster & Holmes County, Ohio Offices abass@localiq.com 330-264-1125
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
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A Look Ahead
Gas & Oil Events DUE TO THE COVID-19 PANDEMIC, MANY EVENTS HAVE BEEN CANCELED OR POSTPONED. PLEASE CHECK WITH THE EVENT COORDINATOR(S) FOR NEW DATES AND TIMES.
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SEPTEMBER 2020
NATURAL GAS POWERS
OSU to a Sustainable Future NICOLE JACOBS | EnergyInDepth Leveraging the region’s abundant natural gas and energy resources, The Ohio State University is moving forward with plans that will advance its sustainability initiatives and achieve environmental progress with a new natural gas-fired power plant. In 2008, the university released its Resource Stewardship Goals, which included achieving carbon neutrality by 2050 and a 25 percent energy efficiency improvement on campus within the next decade. Central to the school’s strategy, the OSU Climate Action Plan, is the construction of a 105.5 MW natural
CO2 emission reductions while U.S. consumption and production of natural gas soared. In addition to reducing costs and enhancing energy efficiency improvements, OSU’s power plant is expected to cut the campus’ carbon emissions by 35 percent within the first year of its operations. The transition to this energy source will also make OSU more resilient by generating its own power through a sustainable closed-loop system. But the environment isn’t the only thing that’s benefiting from this move – the partnership forged to operate the plant is investing millions in the school to enhance education and community support initiatives. Three years ago, Ohio State entered into an agreeOSU continued on page 4
gas-fueled combined heat and power plant, which will be used to power, heat and cool parts of the main campus. Ohio State is one of many schools, hospitals, and cities turning to natural gas for their energy needs, as the push to integrate more low-carbon fuel sources in the energy mix heightens. And it’s working. The International Energy Agency credited the United States as leading the world in energy-related
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OSU continued from page 3
ment with ENGIE Buckeye Operations, part of the Ohio State Energy Partners, to operate and maintain the school’s energy needs. That agreement resulted in $1.1 billion to OSU upfront and a $150 million commitment from partners to support educational
Should Ohio – and America – want to continue down a path of environmental excellence and rebuild a strong economy, natural gas needs to play a large role.
State has invested more than $800 million of the proceeds in endowments that provide ongoing support for student scholarships, faculty excellence and other priorities.” These investments are part of the larger $15 billion Ohio is expected to see in natural gas power plant investments. Yet despite the significant environmental, social and economic advantages the natural gas plant will deliver, industry opponents are doing everything they can to put an end to the use of clean, reliable, and affordable natural gas. The Sierra Club’s Ohio chapter is particularly vocal about its opposition to the plant, stating it will “just add more local generation and more local pollution” to Columbus. Elena Irwin, director of Ohio State’s Sustainability Institute, said that while they did consider using renewable energy resources, it was not “economically feasible,” further demonstrating the falsehoods behind climate activists’ arguments that wind and solar alone are cost-efficient sources of energy. Ohio’s position as the fifth-largest producer of natural gas and 10th-largest electricity generating state in the country makes the Buckeye State a perfect location for future energy investments that bring air quality progress, energy savings, and family-sustaining career opportunities with them. Should Ohio – and America – want to continue down a path of environmental excellence and rebuild a strong economy, natural gas needs to play a large role.
needs and promote energy innovation and technology. As an article in the school paper states: “Beyond the sustainability benefits of the comprehensive energy management partnership, Ohio
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SEPTEMBER 2020
U.S. LIQUEFIED NATURAL GAS EXPORTS REMAIN AT LOW LEVELS THIS SUMMER U.S. Energy Information Administration
Source: U.S. Energy Information Administration, Liquefaction Capacity Table; U.S. Department of Energy, LNG Reports Note: Daily U.S. liquefied natural gas (LNG) exports and export capacity are calculated as a 30-day moving average.
After establishing a record high of 8.0 billion cubic feet per day (Bcf/d) in January 2020, U.S. exports of liquefied natural gas (LNG) fell to an average of 3.1 Bcf/d in July 2020. July exports were similar to LNG exports in May 2018, when the available liquefaction capacity was about one-third of the current capacity. During the week of July 12–18, 2020, LNG weekly exports were loaded by only four vessels for a total of 2.0 Bcf/d—the same levels as the second week of December 2016. The U.S. Energy Information Administration (EIA) expects U.S. LNG exports to remain at low levels for the next few months. According to trade press reports, 45 cargoes have been canceled for August shipments and an estimated 30 cargoes have been canceled for September shipments. Global natural gas demand has declined in response to COVID-19 mitigation efforts. High natural gas storage inventories in Europe and Asia and an ongoing expansion of global LNG liquefaction capacity have also contributed to international natural gas and LNG prices reaching all-time historical
lows. Because most U.S. LNG exports are traded in the global spot market, low global spot and forward prices for natural gas and LNG made exports from the United States uneconomical. Based on the number of cargoes loaded in June and July and the available liquefaction capacity in operation, EIA estimates that about 46 cargoes were canceled in June and about 50 cargoes were canceled in July 2020, exceeding the reported number of expected cancelations in both months. The most affected LNG terminals were Sabine Pass in Louisiana and Corpus Christi and Freeport in Texas, where the utilization of liquefaction capacity in July averaged 33%, 28%, and 6%, respectively. Since U.S. LNG export capacity ramped up in 2018, capacity utilization in the summer has averaged more than 90% because of more weather-related LNG demand in the northern hemisphere, which consumes 98% of global LNG. This summer, EIA forecasts that utilization at U.S. LNG liquefaction facilities will average 35%, or similar to utilization in off-peak months LNG continued on page 6
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LNG continued from page 5
(April, May, September, and October) when seasonal demand tends to be at its lowest level
Source: Source: U.S. Energy Information Administration, Liquefaction Capacity Table; U.S. Department of Energy, LNG Reports Note: Daily utilization of U.S. liquefied natural gas (LNG) export capacity is calculated as a 30-day moving average
Global LNG consumption had record growth in 2018 and 2019, and it continued to expand through February 2020. LNG imports in Asia, which account for 70% of global LNG imports, declined to last year’s levels by June, mostly as a result of declines in Japan and South Korea. After record growth in the past two years, LNG imports in Europe have also declined because of lower natural gas demand and high levels of natural gas in storage following a mild winter. European natural gas storage levels were 85% full at the end of July 2020. Natural gas demand in key European import markets remains depressed, limiting additional LNG imports in the coming months.
LNG exports in other months of this year remained relatively unchanged compared with last year.
Source: U.S. Energy Information Administration, based on Refinitiv EIKON
In the August Short-Term Energy Outlook, EIA forecasts that U.S. LNG exports will return to preCOVID levels by November 2020 and remain relatively high (at about 8 Bcf/d–9 Bcf/d) through this coming winter and into 2021. Principal contributor: Victoria Zaretskaya
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Source: U.S. Energy Information Administration, based on Refinitiv EIKON
Global LNG suppliers have reduced shipments in response to a decline in global LNG demand. In June and July of this year, Australia and the United States, the world’s second- and third-largest LNG exporting countries, reduced LNG exports the most among LNG producers—by an average 1.2 Bcf/d and 1.5 Bcf/d, respectively. Russia, the world’s fourthlargest LNG exporter, reduced LNG shipments by an average 0.9 Bcf/d (25%) in June and July of this year compared with the same period last year. Qatar, the world’s largest LNG exporter, reduced LNG exports by an average 0.5 Bcf/d in June and July of 2020 compared with the same period last year, while its
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SEPTEMBER 2020
How and What are You Thinking? Guest Editorial
GREG KOZERA | Shale Crescent USA I just finished an interview for the First Light Show airing nationally on Westwood One next week. We talked about how and why we need to bring manufacturing back to the USA creating high wage jobs. Our Region is advantaged because of our proximity to markets, abundant natural gas and natural gas liquids. It was a great opportunity to tell our story to the nation. Shale Crescent USA’s thought leadership made this
“When we change our thinking, we change our life.” possible. Dr. Clay Marsh, West Virginia Covid-19 Czar said something profound this week I haven’t heard anyone in the medical community say directly. “We are entering a new time period of learning to live with the virus.” I might not have the quote exactly but my understanding is, Covid-19 isn’t going away anytime soon even though we are working on vaccines and possible cures. If the virus isn’t going away we need to live our lives in a way that protects us and others as we move to normal activities. Going back to lockdown isn’t the answer. We may find extended lockdown was deadlier than the virus because of depression, stress, increased suicide, domestic abuse, substance abuse and deaths from other diseases like cancer, high blood pressure and heart disease that went untreated. One doctor said he has only diagnosed about 1/3 of the cancer cases he normally does. Cancer doesn’t take vacations. People chose not to go to the doctor out of fear.
SEPTEMBER 2020
When I had cancer over 30 years ago, my wife pushed me to see a doctor and made the appointment. It was serious enough for me to have surgery the next day. Fortunately, the cancer was found early. My type of cancer spreads quickly. A delay could have been deadly. How many cancer cases have spread into something incurable during Covid-19? Industries like trucking, healthcare, petrochemicals and others learn to successfully deal with risks every day. Driving to the store, church or the beach is a risk most of us are willing to take. In industry following common sense rules like wearing PPE or seatbelts lowers the risk. Wearing a mask, social distancing and washing our hands does the same for us when dealing with Covid-19. The question isn’t “if” we can get back to business, school or athletics it is, “How can we?” This question assumes we can, will and must. We know how we can bring manufacturing back to the USA. I got a new crown from my dentist this week. It was made in the USA out of ceramic and zirconium on a 3D printer instead of by hand in China. My dentist said it won’t crack or chip. We are us-
“Give first without any expectation of receiving anything” ing high tech computerized 3D printing capabilities to make critical healthcare PPE, essential medical equipment, products like Covid-19 tests and parts we are currently getting overseas. Small and medium manufacturing companies in our Region have the Thinking continued on page 8
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“Successful people are; Positive thinkers Readers Givers See opportunity Don’t blame Experts Exceptional communicators ers, trainers, coaches, business thought leaders and entertainers. NSA members were hurt by Covid-19 when meetings cancelled. I have a friend with a very successful business who lost 6 months of income in a week when meetings went away. In addition to the mainstage presentations at Influence, we attended small virtual breakout sessions with the most successful people in the business. These individuals have seven figure businesses. They also have staffs and overhead a business like mine does not have. One individual lost over $1 Million in business almost immediately when meetings and live events began to cancel. I wanted to see how they were thinking in challenging times. These successful people responded honestly and openly to our questions. Their mindsets were surprisingly consistent. The approach they have to this pandemic is something I believe we can all learn from. Here are some thoughts; The biggest challenge we have living with Covid-19 is our thinking, Hall of Fame Speaker Willie Jolley told us. “When we change our thinking, we change
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our life.” The late speaker and radio personality, Earl Nightingale said, “We become what we think about.” Willie added, “Our thinking and attitude are formed by the people we spend time with and the things we read.” One thing all of these successful people did was to give first without any expectation of receiving anything. They knew everyone was hurting in some way. They began by calling their customers and offering to help at no charge. Some had weekly Zoom sessions where they brainstormed solutions or just listened. Successful people are experts and thought leaders in their space. They are trusted advisors who share their expertise. These individuals challenge people to think. They get paid for their ability to think and to go beyond the obvious. They believe certainty is an illusion. They don’t panic in a crisis. They lead. They know how to refocus and evolve. When the old way is doesn’t work find a new way. Their businesses are growing again. Successful people are; Positive thinkers Readers Givers, who give first without expecting something in return See opportunity even in a crisis. They believe there is always opportunity if we look. Don’t blame. They know that is a waste of time. Experts in their space and thought leaders. Exceptional communicators We are each capable of all of these qualities, if we change our thinking and believe we are capable. How are you thinking? Anything is 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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ability to change quickly and adopt new technology or change product lines quicker than large companies. This helps to keep current jobs and bring in new manufacturing jobs which are really important now. Lynnda and I attended Influence 2020 the annual National Speakers Association (NSA) Conference last weekend. It was virtual. NSA is an ethnically and physically diverse association of professional speak-
SEPTEMBER 2020
The Coordinated Attack
on Ohio’s Natural Gas NICOLE JACOBS | EnergyInDepth The Ohio State University’s plans for the construction of a sustainable, on-campus natural gas-fueled power plant is on the receiving end of fringe activist groups’ opposition, with the Sierra Club’s Ohio Chapter leading the charge. Peddling misinformation about the environmental, consumer, and economic benefits natural gas delivers, the coordinated efforts of local environmental organizations continue to demonstrate their commitment to stopping the successful reach of Ohio’s energy industry. For those who are unfamiliar with the latest debate, “Keep it in the Ground” activists – primarily the Sierra Club – claim the university did not thoroughly consider “cleaner” energy alternatives such as solar, wind, and geothermal technology when drafting plans for the power plant. They also assert that the facility, while a cornerstone to OSU’s sustainable energy plan, con-
flicts with the city of Columbus’ community-choice energy-aggregation plan to achieve 100 percent “green” power in less than two years. But even OSU’s Sustainability Institute program director said powering the campus with wind and solar alone is “not economically feasible.” Natural gas producers operating in Ohio take precautionary measures – in addition to adhering to strict state and federal regulatory oversight – to ensure the work they do is safe for the environment, residents, and workers. To say methane emissions from the natural gas industry “wipe out its advantage over coal” is not only misleading, it’s factually incorrect. Combined methane emissions from oil and natural gas systems declined 23 percent between 1990 and 2017, according to the U.S. Environmental Protection Agency’s 2020 Greenhouse Gas Inventory. At the same time, nationwide natural gas and oil production grew by 72 percent and 49 percent, respectively. Further, there is substantial research that current methane leakage rates are well-below the threshold for natural gas to maintain its climate benefits over coal. A 2015 Carnegie Mellon University study found that over the entire lifecycle of liquefied natural gas – from production to consumption – as long as the methane leakage rate stays below roughly 9 percent when used for electricity and 5 percent for heating, LNG will maintain its climate benefits over traditional fuel sources. Similarly, a 2019 study published in Nature determined: “We found that the coal-to-gas shift is consistent with climate stabilization objectives for the next 50100 years. Our finding is robust under a range of leakage rates and uncertainties in emissions data and metrics. It becomes conditional to the leakage rate in some locations only if we employ a set of metrics that essentially focus on short-term effects. Our case for the coal-to-gas shift is stronger than previously found…” In fact, because of America’s transition to natural gas for power generation, the United States is credited as leading the world in energy-related carbon emissions reductions, according to the International Energy Coordinated continued on page 10
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Agency (IEA):
“In the last 10 years, the emissions reductions in the United States has been the largest in the history of energy.” And a July IEA report finds: “Since 2010, [global] coal-to-gas switching has saved around 500 million tonnes of CO2 – an effect equivalent to putting an extra 200 million EVs running on zero-carbon electricity on the road over the same period.”
years, the U.S. Chamber of Commerce found. Coordinated Efforts Against Progress
Source: IEA, CO2 savings from coal-to-gas switching in selected regions compared with 2010, 2018, IEA, Paris https://www.iea. org/data-and-statistics/charts/co2-savings-from-coal-to-gasswitching-in-selected-regions-compared-with-2010-2018
At the state level, Ohio has reduced energy related carbon emissions at a higher rate than any other state, according to Energy Information Administration data. Between 2005 and 2017, Ohio’s carbon emissions declined 24.7 percent. These air quality improvements were achieved despite natural gas consumption and production increasing by 63.5 and 1,974 percent, respectively. Ohio, with its abundant natural resources and close proximity to major international trading ports, is an ideal location for new energy investments that bring jobs, increased tax revenue, and support community and environmental programs. The OSU power plant, in fact, is one of many proposed or underway across the state, representing upwards of $15 billion in investments. Despite these generational benefits, some still advocate to ban shale development, which would kill roughly 700,000 jobs in Ohio alone and contribute to a $245 billion hit to the state economy in just five
Negative chatter surrounding OSU’s plant, while frustrating, is not surprising given the opposing organizations’ ties to groups vehemently opposed to natural gas development. Groups like the Ohio Sierra Club, Keep Wayne Wild, and the Ohio Environmental Council are part of campaigns like Beyond Carbon, repeating the same misinformation to push a similar targeted goal to “end our reliance on dirty dangerous natural gas and fracking.” These groups are part of a a coordinated effort, often with similar funding sources, to perpetuate a never-ending cycle of amplifying the same debunked narrative and passing it off as “news”. For example, one of the Ohio Environmental Council’s donors, the Energy Foundation, is one of the largest foundations that administers these block grants for efforts against oil and natural gas, and its end use. Their M.O? “The principal function of the Energy Foundation has been to leverage money in a highly concentrated pattern on behalf of policies that shift markets, industry, and consumers in the direction of renewable energy technologies and energy efficiency practices.” It comes as no surprise that one of their partners is also the Pittsburgh based Heinz Endowments, which is a multi-million foundation and a frequent donor to all Attack continued on page 11
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things anti-oil and natural gas. The Sierra Club itself is tied to some of the wealthiest of these donors as well, such as the Rockefeller Family Foundation, MacArthur Foundation, and New York City’s former mayor Michael Bloomberg. Another active organization in the Buckeye State, Keep Wayne Wild, is typically outspoken about their push to ban shale development in and around the Wayne National Forest, but has taken a familiar stance in opposition of the potential power plant at Ohio State: “OSU should not power its campus on the backs of “sacrifice zones.” Fracking and pipelines harm rural communities and natural areas. They threaten our air and water and often have accidents such as leaks and explosions that put us in danger.”
natural gas and oil development – is subject to the same backlash in the never ending activist echo chamber. But while the well-funded environmental movement believes wind and solar energy alone will power a clean energy future, those vocally opposing the OSU plant are in the minority. As a current mechanical engineering student recently wrote: “The Sierra Club recruited students to vocally oppose this power plant, but those opponents are in the minority. Students and faculty of OSU want the environmental advancements, efficiency improvements and cost reductions that this combined heat and power plant will achieve.”
And it’s not just natural gas power plants. Practically every inch of Ohio’s energy industry – from the proposed PTTG petrochemical facility along the Ohio River to pipeline disputes, and even a proposed barge facility that will be used to safely transport and dispose produced water used in
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PARTNER IN MULTIBILLION-DOLLAR
Petrochemical Plant Project Backs Out BETH BURGER | Columbus Dispatch USA TODAY NETWORK A Thailand-based company planning to build a petrochemical plant along the Ohio River in eastern Ohio lost its business partner Tuesday, citing economic effects from the coronavirus pandemic and recent volatility in oil prices. “We are in the process of seeking a new partner whilst working toward a final investment decision. We look forward to making an announcement by the end of this year or early next year on this transformative project for the Ohio Valley Region,” said Toasaporn Boonyapipat, president and CEO of PTT Global Chemical America, in a statement about business partner Daelim Chemical USA breaking ties. The project, which still has not been formally committed to, will now “encounter a delay of about six to nine months compared to the previously announced timeline,” according to the statement. Oil and natural gas prices were driven lower when the pandemic hit, resulting in energy companies taking enormous losses. Royal Dutch Shell took a $22 billion write-down, following on a $17.5 billion write-down by BP. It’s unclear whether larger projects such as the ethane cracker plant in Ohio will move forward. “Under this market situation, PTTGCA and DCA have been assessing the impact for major investment projects to ensure that our portfolio is wellpositioned for the future of [the] petrochemical industry. While we continue to believe in the long-
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term strategic importance of this project, DCA has taken the difficult but necessary decision to withdraw as an equity partner from the project,” according to a joint statement released by the companies. JobsOhio, in a statement Tuesday, thanked Daelim for its work on the project. “JobsOhio continues working closely with PTTGCA to bring the project to a successful final investment decision,” said JobsOhio, the state’s economic development group. “PTTGCA has expressed its belief in the long-term strategic importance of this transformational project, which would bring billions in investment while creating thousands of construction jobs and hundreds of permanent jobs.” Larry Merry, executive director of the Belmont County Port Authority, said the pandemic has slowed work on the project, but he remains confident PTT will go forward with the project. “We have worked with PTT for many years on this, and we continue to have great communication and we’re working every day to make this project a reality,” Last month, a group of experts warned Ohio Gov. Mike DeWine about the state moving forward with the project as the price of plastic plummets. The group cited a global oversaturation of ethane-ethylene cracker plants and the plastics they produce. When the project was proposed, the price of plastics was in the range of $1 per pound. Now, plastics sell for 40 to 60 cents per pound. A recent U.S. Department of Energy report estimated the project’s cost at $10 billion ― twice previous estimates. If it goes forward, it would be the largest economic development project in the state’s history, officials have previously said. This is the second time a partner has backed out of this project. Japan-based Marubeni Corp. was initially listed as the partner but was later replaced by Daelim Chemical, which is based in South Korea.
SEPTEMBER 2020
SHALE WELL GAS PRODUCTION DROPS SHANE HOOVER | The Canton Repository USA TODAY NETWORK Natural gas production from Ohio’s shale wells dropped during the first three months of the year, according to the Ohio Department of Natural Resources. Utica and Marcellus shale wells produced almost 582 billion cubic feet of natural gas through March. That was almost 5% less natural gas than was produced during the first quarter of 2019. Horizontal shale wells produced nearly 5.9 million barrels of oil, a 16% increase over the previous year. Most of the wells drilled in Ohio have targeted areas that primarily produce natural gas. The wells also produced 7.3 million barrels of salty wastewater or brine. ODNR recorded production from 2,509 horizontal shale wells, with each well averaging:
• 2,346 barrels of oil. • 232 million cubic feet of natural gas. • 86 days of production. Belmont County produced the most natural gas — 206 billion cubic feet — and Guernsey County produced the most oil — 2.6 million barrels — during the quarter. Ascent Resources Utica was the top producer of both natural gas — 190 billion cubic feet — and oil — 2.3 million barrels. Some drillers have deferred production with the hope that commodity prices will rebound later this year and next year.
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AGA COMMENDS SENATE PASSAGE OF PIPELINE SAFETY REAUTHORIZATION American Gas Association The American Gas Association commends the work of the United States Senate in passing S.2299, the Protecting our Infrastructure of Pipelines and Enhancing Safety (PIPES) Act of 2020 by unanimous consent. “This is an important step in the reauthorization process after months of work with our legislators— we appreciate their effort and dedication to getting this right,” Karen Harbert, President and CEO of the American Gas Association, said. “There is more work to do, and we are eager to get this important legislation through the House in a timely manner to help ensure our industry has the tools and technologies to continue to make our energy infrastructure safer.” AGA would also like to thank the bipartisan work from the PIPES act of 2020 sponsors: Senators Deb Fischer (R-NE) and Tammy Duckworth (D-IL), as well as Senate Commerce Committee Chairman Roger Wicker (R-MS), Senate Commerce Committee Ranking Member Maria Cantwell (D-WA), Senator Ed Markey (D-MA), Senator Tom Udall (D-NM) and their staffers for their tireless work on this important legislation. The legislation includes important provisions implementing Pipeline Safety Management Systems (PSMS). In 2019, The AGA Board of Directors approved a resolution recommending that all members implement PSMS, or API RP 1173, a holistic approach to improving pipeline safety that includes the identification, prevention and remediation of safety hazards. The reauthorization, which lapsed at the end of 2019, remains in process in the U.S. House of Representatives as H.R.
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5120. The American Gas Association, founded in 1918, represents more than 200 local energy companies that deliver clean natural gas throughout the United States. There are more than 75 million residential, commercial and industrial natural gas customers in the U.S., of which 95 percent — more than 71 million customers — receive their gas from AGA members. Today, natural gas meets more than three-tenths of the United States’ energy needs.
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OHIO WELL ACTIVITY by the numbers
UTICA SHALE
MARCELLUS SHALE 24 8 5 40
77
Wells Permitted Wells Drilling Wells Drilled Not Drilled Wells Producing Inactive Other Total Horizontal Permits
Data as of 8/1/20
507 99 157 2523
3286
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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TOP COUNTIES WITH HORIZONTAL DRILLING ACTIVITY BY NUMBER OF SITES
1. Belmont County........ 705 2. Harrison County....... 532 3. Carroll County..........531 4. Monroe County........ 504 5. Jefferson County...... 285 6. Guernsey County...... 280. 7. Noble County.......... 230 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 16. Holmes County........... 3 17. Morgan County........... 2 Knox County.............. 2 18. Ashland County.......... 1 Astabula County......... 1 Geauga County.......... 1 Medina County........... 1 Wayne County............ 1
WELL SITES IN VARIOUS STAGES: PERMITTED DRILLING, DRILLED, COMPLETED, PRODUCING, PLUGGED, , D SI S SOURCE: OHIO DEPARTMENT OF NATURAL RESOURCES AS OF 8/1/20 PLETED PRODUCING PLUGGED
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SEPTEMBER 2020
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