Tuesday, June 17, 2014

Five Utica Shale Facts that Can't Be Ignored

The June 14, 2014 Utica Shale Activity Report released by the Ohio DNR today is telling on how much things have changed vs. last year and where things are heading. Let's have a look.

  1. Of the 153 wells classified as "drilling" in the June 14, 2014 report, only 3 wells are situated north of downtown Canton. 

    At about 7 million/well, current drilling activity alone accounts for a current bet of  approximately one billion dollars on the Utica Shale.

    As a comparison, on June 15, 2013, only 12 wells were classified as "drilling".

  2.  Just six counties: Belmont, Carroll, Guernsey, Harrison, Monroe, and Noble account for 149 of the 153 wells currently drilling. These counties lie mostly to South.

  3. Wells classified as "drilled" and waiting for production stands at 284. Some of those wells are in a "resting period" and soon will be producing. Other wells are awaiting infrastructure, and still more are not being put into production for other reasons (more favorable economics, etc).

  4. 467 wells are classified as "producing" 254 of those, or 54%, lie in two counties, Carroll and Columbiana. Given the shift in activity to the south, this percentage will go down over time as Southern wells come online.

  5.  Of the 69 new permits issued June 1-14, 2014, only 1 new permit is north of downtown Canton
And looking at all permits issued from January 1, 2014 through June 14, 2014. The map below tells it all. The future activity is South.
Permits issued January 1, 2014 through June 14, 2014. Source: Ohio DNR Data.
NOTE: Each red dot may indicate multiple wells on a platform.