Oilpatch Snapshot

Oil & Gas Industry OverviewApril 23, 2012

Ohio Oil & Gas IndustryIndustry in Ohio for 152 years

275,774 oil and gas wells drilled64,378 wells in production

Production

Crude Oil

2011 4,852,964 barrels

Total1,141,380,706 barrels

Natural Gas

201173,289,838 mcf

Total8,593,388,085 mcf

Production numbers estimated based on available data, compiled by OOGA, oil reserve, gas reserve and the Department of Energy

2011 Wells Drilled by County

58 Utica Wells Drilled 7 Wells in Production

As of March 15, 2012161 Utica Wells

Permitted

≥ 20 wells < 20 wells

460 total wells

What does Shale mean to Ohio’s

Economy?2010

• $988 million in gross state product• $1.7 billion statewide output or sales

2011-2014 • Oil and gas producers are projected to reinvest over $34 billion in exploration and development, midstream, royalty and lease expenditures.

• Could generate approximately $12.3 billion to the gross state product and have a statewide output or sales of $23 billion.

 

• Distribute $1.6 billion in royalty payments

Ohio Oil & Gas Energy Education

Programwww.oogeep.org

Economic Impact Study

Released September 2011

It’s not the strongest of the species that survives, not the most intelligent, but the ones most responsive to change –

Charles Darwin

Fresh Water Impoundment

Access (Lease) Road

Well pad

Pipeline access

Predrilling Supply Chain

Source: Marcellus Shale Education and Training Center © MSETC, 2012

Supply Chain Opportunities

Pre-Drilling• Construction • Aggregates• Surveying• Fencing

• Equipment Rental• Environmental • Engineering

TimeframeUp to 2 months

Drilling Down

Crown Block

Derrick

TravelingBlock/ Top

Drive

Triple Standing Drill Pipe

Dog House

Monkey Board

Drilling & Well Construction

Source: Marcellus Shale Education and Training Center © MSETC, 2012

Supply Chain Opportunities

Drilling and Well Construction• Trucks, Trucks and more Trucks • Equipment rental• Water• Security• Communication

Systems

• Fuel • Aggregates• Maintenance/ repair parts• Housing/ hospitality

Timeframe2-4 months

Drilling Down

Completion Supply ChainCourtesy: Range Resources Appalachia

Goat head

Pump Trucks

Blender Trucks

Acid Truck

Water Transfer

Tanks

Sand Storage

Control CenterChemical Storage

High PressureManifold

Water Impoundment

Sand Haulers

Staging Area

Water Transfer Lines

Source: Marcellus Shale Education and Training Center © MSETC, 2012

Supply Chain Opportunities

Completion/Mid-stream

Timeframe

Drilling Down• Water, Water and more Water• Reclamation • Meters/ monitoring• Remote Security

• Pipeline• Welding supply• Compressors• ROW Work• Road Reconstruction

Completion work: 2 months + Production: up to 60 Years

Recent Industrial Investments in Utica Shale

V&M Star – Youngstown $650 Million +

U.S. Steel, Lorain $240 Million

Timken, Canton $225 Million

Chesapeake Energy, M3 Midstream, & EV Energy Partners, Columbiana

County $900 million

Halliburton – Muskingum County$150 million and 300 jobs

14

MarkWest – Harrison & Monroe Counties$500 million and

700+ construction jobs

Exterran – Columbiana County$13 million and about 100 jobs

Baker Hughes – Stark County$64 million and 700 jobs

Select Energy Services – Carroll County

$10 million and 185 jobs

$2.75 BILLION and Counting – NOT Including Lease and Royalty Payments, Operations, etc.

Ohio Oil and Gas Association

The Ohio Oil & Gas Association (OOGA) is a trade association with over 2,600 members involved in the exploration,

production and development of crude oil and natural gas resources within the State of Ohio.

Ohio Oil and Gas Association

Mission:To protect, promote, foster and advance the common

interests of those engaged in all aspects of the oil and gas production industry

The Association advocates for the industry before the Ohio General Assembly, United States Congress, state and federal

agencies and the general public.

Ohio Oil and Gas Association

OOGA contributes to members business and professional growth by offering a wide range of services, programs, products and money saving opportunities. Activities are focused in four areas:

• Advocacy on a state and national level• Information sharing through monthly newsletter, website,

email alerts and report services• Educational opportunities through industry specific training

and information sharing seminars• Economical programs to ensure compliance with state and

federal regulations.

Business Development Seminar Goals

• Overview of the industry

• How the procurement process works

• Opportunities within the supply chain

• Tools to build a business plan to enter the oil and gas industry– Safety expectations– Insurance requirements– Contracts– Marketing ideas

Ohio Oil and Gas Association

Kristy Hawthorne Director of Membership

Services and Small Business Development

khawthorne@ooga.org740-587-0444

www.ooga.org