Friday, July 17, 2015

Ohio Utica Shale Well Status Graph Highlights Trends

A chart of Ohio Utica Shale Well Status by month highlights drilling downturn, production buildup, and drilled backlog.

Wells and well status over time in Ohio's Utica Shale
Click to Enlarge

Key takeaways

The velocity of wells entering production has declined somewhat
While wells entering production has slowed, according to the EIA, Utica Shale Production continues to increase month over month. See related post Utica Shale - Net Gas Production Soaring Past Others. And while the EIA Utica Shale report includes more than just Ohio, Ohio is the main contributor. 

Drilling has tapered, though still above 2014 levels... so far.
And while wells classified as drilling  peaked near the end of 2014 / beginning of 2015, drilling activity is still just above activity this time last year, though that will change if the drilling decline continues at the current rate.

Increasingly, drilled wells are awaiting production
At the same time as drilling began to slow, wells classified as drilled but not yet producing has increased. This trend is likely due to operators awaiting more favorable gas prices or they negotiating with service providers and holding out for discounts on completion services required to bring wells under production, all most likely related to economics.

Inventory of wells permitted remains steady
A healthy pipeline of wells ready to drill has maintained, indicating the under favorable economics the wells will be ready to drill.

Thursday, July 16, 2015

Ohio Utica Shale: Map - Who is Drilling Where as of July 11, 2015

According to the most recent report out of the Ohio Department of Natural Resources, 188 wells are currently classified as "Drilling" in Ohio's Utica Shale. About two months ago,  May 2, the number stood at 222 wells.

Monroe County leads with 47 wells classified as drilling, followed by Harrison with 39 and Belmont with 31. The remainder consist of Guernsey [29], Noble [16], Jefferson [10], Carroll [9], Columbiana [4], and Portage, Trumbull, and Tuscarawas with 1 each.

American Energy leads all operators with wells classified as drilling in Ohio's Utica Shale with 47, followed by Antero Resources with 37 and Chesapeake with 26. The remainder consist of Gulfport Energy [18], Eclipse Resources [10], Rice Drilling [10], PDC Energy [8], Carrizo [7], CNX Gas [6], Hess [6], Triad Hunter [3], XTO Energy [3], Atlas Noble [2], Hilcorp Energy [2], and EQT, Halcon, and Mountaineer with 1 each.

Pan, zoom, and click for more information about each well.

Ohio Utica Shale Permitting Activity Map - Last 30 Days

The last 30 days of permitting activity in the Ohio Utica Shale shows just 4 counties participating according to the most recent report from the Ohio Department of Natural Resources updated to July 11, 2015.

The 47 wells permitted in Carroll, Harrison, Monroe, and Noble Counties from June 12 through July 11 are shown below. Well locations and paths highlighted in yellow are classified as currently permitted only. Those in red are currently classified as drilling.

Wednesday, June 3, 2015

Utica Shale Ohio Q1 2015 Gas Production by County

Four times a year we are treated to a new set of Utica Shale production data out of the Ohio DNR. With each report we gain more insight into a number of things. In this post I will look a gas production by county.

Gas Production by County Q1 2015 vs. Q4 2014

Data extracted from Ohio DNR production reports

Immediately what stands out is that the lower producing counties have mostly dropped in natural gas production while the top six higher producing counties have all gained in production from quarter to quarter.

Minus the one well in Coshocton county, more marginal counties are all in a decline. And while the number of producing wells is similar from quarter to quarter in these more marginal counties, inevitable decline rates will continue to reflect lower production if no new wells are drilled in the counties.

In addition, producing days and wells producing are up, more of an indication that, though slowing somewhat recently, more wells are coming online in the most prolific gas producing counties.

On the plus side, Guernsey and Noble counties showed the largest increases in natural gas production quarter to quarter, also reflected in increased numbers of wells brought into production.

Another observation to be made is that Belmont and Monroe counties are bringing in relatively higher natural gas production per well as demonstrated by sum of producing days compared to others. Indications are that wells drilled in these counties are relatively more profitable, though that would depend on how early the respective wells are in their production curve relative to wells in other counties. It is no surprise then, according to Ohio DNR permit activity, that Belmont and Monroe counties lead in wells classified as drilling in May 2015.

Disclaimer & Caution: While some care was taken to accurately reflect numbers provided by the Ohio DNR, the site owner takes no responsibility for any errors.