Oilpatch Snapshot

Oil & Gas Business Educational Development Seminar

April 11, 2011

Ohio Oil & Gas IndustryIndustry in Ohio for 150 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

460 total wells County Information

Stark – 40Mahoning - 21

Tuscarawas - 18Carroll - 15

Portage - 14Summit – 11

Major targeted reservoirsClinton/Beekmantown

≥ 20 wells < 20 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 ChainPredrilling 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

• 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• Meters/ monitoring• Refining• Product sales

• Site Restoration • Pipeline• Welding supply• Compressors• ROW Work

Completion work: 2 months up 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.

Business Development Seminar Goals

• Overview of how the industry 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

The Ohio Oil & Gas Association (OOGA) is a trade association with over 2,300 members involved in the exploration,

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

khawthorne@ooga.org740-587-0444

www.ooga.org