The Multi-State Shale Research Collaborative

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The Multi-State Shale Research Collaborative By Michael Wood and Mark Price

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The Multi-State Shale Research Collaborative. By Michael Wood and Mark Price. The Keystone Research Center/Pennsylvania Budget and Policy Center Policy Matters Ohio The Fiscal Policy Institute (New York) The West Virginia Budget and Policy Center The Commonwealth Institute (Virginia). - PowerPoint PPT Presentation

Transcript of The Multi-State Shale Research Collaborative

Page 1: The Multi-State Shale Research Collaborative

The Multi-State Shale Research Collaborative

By Michael Wood and Mark Price

Page 2: The Multi-State Shale Research Collaborative

• The Keystone Research Center/Pennsylvania Budget and Policy Center

• Policy Matters Ohio• The Fiscal Policy Institute (New York)• The West Virginia Budget and Policy Center• The Commonwealth Institute (Virginia)

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• Understanding the Economic and Human Service Impacts of the development of shale oil and gas resources in our region– Economic Impacts– Case Study (Tioga PA, Greene PA, Carroll OH,

Wetzel WV)– Human Service Impact Report– Guidebook for Local Officials

Our Presentation today will be focused on documenting the rise of drilling and its employment impacts.

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Where is the Shale?

Source. Independent Petroleum Association of America, http://oilindependents.org/utica-the-shale-revolution-coming-to-ohio/

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Pennsylvania

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* -

500

1,000

1,500

2,000

2,500

-

20

40

60

80

100

120

Well Permits and Drilling for Pennsylvania Shale Gas Peaked in 2011, New Producing Wells Increased in 2012

Permits Wells SpudNew Producing Average Operating Rigs

Unco

nven

tiona

l or S

hale

Wel

ls

Drill

Rig

s

Sources. PA Dept. of Environmental Protection (DEP)- permits, drilled/spud, production and Baker Hughes - rig counts

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Shale Dominating PA Production

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

90% of Pennsylvania Natural Gas Now Comes from Shale

Conventional Unconventional (Shale)

Nat

ural

Gas

Pro

ducti

on (m

illio

n cu

bic f

eet (

MM

cf)) 2012: 2.256 TCF of total production

(2.041 TCF from shale)

2006: 176 BCF total production

Sources. US Energy Information Administration (EIA) and PA DEP

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O&G Deed Transfers May be a Good Indicator – If You Can Get the Data

2005 2006 2007 2008 2009 2010 2011 20120%

10%

20%

30%

40%

50%

60%

70%

0

20

40

60

80

100

120

140

45%

67%

Greene County PA O&G-Related Deed Transactions Spike in 2011

# of Oil & Gas Transactions O&G Transactions Share of Total Value TransferredShale Wells Drilled

Shar

e of

Tra

nsfe

rs O

il &

Gas

Rel

ated

Shal

e W

ells

Drill

ed

Source. Author’s analysis of Greene County (PA) Register and Recorder’s Office data

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West Virginia

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*0

100

200

300

400

500

600

700

-

5

10

15

20

25

30

35

Permits Wells SpudNew Producing Average Operating Rigs

Num

ber o

f Mar

cellu

s Sha

le W

ells

Aver

age

Ope

ratin

g Ri

gs

Sources. WV Geological and Economic Survey (WVGES) - permits, drilled/spud, production and Baker Hughes - rig counts

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Shale Growing as a Share of Total WV Gas Production

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*

-

100,000

200,000

300,000

400,000

500,000

600,000

Shale Accounts for 63% of Natural Gas Produced in West Virginia in 2012

Conventional Unconventional (Shale) From Oil Wells

Nat

rual

Gas

Pro

ducti

on (M

illio

n Cu

bic F

eet M

Mcf

)

2004: 197 BCF

2012: 539 BCF total (338 BCF from shale)

Sources. EIA and WVGES

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Ohio

2006 2007 2008 2009 2010 2011 2012 2013*0

50

100

150

200

250

300

350

400

450

0

5

10

15

20

25

30

35

Ohio Shale Activity Ramping Up

Permits Wells SpudNew Producing Average Operating Rigs

Num

ber o

f Sha

le W

ells

Drill

Rig

s

Sources. OH Dept. of Natural Resources (DNR) - permits, drilled/spud, production and Baker Hughes - rig counts

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After Years of Decline, Gas Production Starting to Grow in OH Due to Shale

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Shale Gas Production Just Emerging in Ohio as Conventional Gas Production Declines

Conventional Gas Wells Conventional Oil Wells Shale Wells

Nat

ural

Gas

Pro

ducti

on (M

illio

n Cu

bic F

eet M

Mcf

)

2012: 84 BCF total (12.9 BCF from shale)

2000: 105 BCF total

Sources. EIA and OH DNR

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OH Oil Production Dropping, but Shale May Change Things

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -

2,000

4,000

6,000

8,000

10,000

12,000

Shale Oil Accounted for 13% of Total Ohio Oil Production in 2012. Production Still Only Half of What was Produced in 1990.

Conventional Oil Production Shale Oil Production

Oil

Prod

uctio

n (t

hous

ands

of b

arre

ls)

Shale Oil: 639,000 bar-rels of 4.86 million produced in 2012

Sources. EIA and OH DNR

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New York

• To date, 22 Marcellus Shale wells have been drilled in New York

• 6 wells actively producing• 16 wells “shut in” – drilled, but not producing• 184 permit applications submitted to NY Dept.

of Env. Cons. to drill in Marcellus Shale• Moratorium on new permits since 2008

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Wells in Southern Tier

Source. NY Department of Environmental Conservation

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Maryland• Moratorium in 2011• Limited to Westernmost Counties

Source. Maryland Department of the Environment (MDE)

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Virginia

6 H Wells – Buchanan49 H Wells – Dickenson7 H Wells - Wise

62 total horizontal gas wells drilled since 2007. 60 drilled from 2008 through 2011.

Source. VA Department of Mines Minerals and Energy (MME)

One company has expressed interest in MS in Rockingham

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Employment Impacts

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Employment Impacts

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Employment Impacts

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Employment Impacts

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Employment Impacts

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Employment Impacts

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Next Steps in Research• Finishing economic impact release• Case studies visits complete, writing report• Used case study experience to help identify social service

impacts to investigate. Data being collected and analyzed.

Contacts:Mark Price [email protected]

Mike Wood [email protected] or (717) 255-7181