[Corrected] ODNR Moving to Quarterly Production Numbers for O&G

CORRECTION: MDN has just been alerted by our friends at the Akron Beacon Journal that our information about quarterly reporting coming from ODNR is not correct. The proposed legislation which contained language about filing quarterly updates to production numbers ultimately did not pass the state legislature and therefore Ohio will (for now) stay on yearly reporting—which is unfortunate. Our thanks to Bob Downing for the heads-up on this.

On Monday the Ohio Dept. of Natural Resources (ODNR) issued its annual Ohio Mineral Industries Report. A very small part of that report covers drilling and production for oil and gas in Ohio (see that section of the report below). ODNR has taken a lot of criticism lately over the fact that shale oil and gas production numbers are only required to be filed and reported once per year by drilling companies. ~~Apparently the criticism has prompted ODNR to change the reporting requirement.~~

~~Starting in 2013, the ODNR will require (and will itself) report oil and gas production numbers on a quarterly basis.~~

Here is rather brief summary included in the latest annual Mineral Industries Report that deals with oil and gas production in Ohio:

The ODNR Division of Mineral Resources Management (DMRM) estimates that 460 wells were drilled in 2011, an increase of 33 wells from 2010. Wells were drilled in 42 of Ohio’s 88 counties (fig. 20), a decrease of two counties from 2010. The top counties in number of new wells drilled in 2011 were Stark, Knox, Belmont, Coshocton, Muskingum, Licking, Mahoning, Guernsey, Meigs, Tuscarawas, and Summit. The DMRM received 365 well completion reports; 338 wells were productive and 27 were dry holes for a completion rate of 92.6 percent (table 20).

The Silurian-age "Clinton" sandstone continued to dominate Ohio’s drilling statistics (table 21), as it has for more than 50 years. The number of wells drilled to the "Clinton" in 2011 declined 6.4 percent compared to 2010, with an average depth increase of 153 feet per well. Drilling to the Ohio Shale increased by 29 percent. A total of 24 wells were completed in the Utica/Point Pleasant interval, which represents the initial production from a promising new play in the state.

The total reported cruse oil production in Ohio in 2011 was 4,852,964 barrels (bbl; fig. 21), a 1.4 percent increase from 2010. Through 2011, Ohio wells have produced approximately 1.14 billion bbl of crude oil. The dollar value of crude oil produced in Ohio in 2011 was $437,055,240, an increase of 22.7 percent. Average price per barrel in 2011 was $90.06, a 21.0 percent increase from the 2010 price.

Natural gas production in Ohio in 2011 was 73,289,838 thousand cubic fee (MCF; fig. 21), a 6.2 percent decrease from 2010. This production figure includes and estimated 725,642 MCF of gas used on the lease. Through 2011, Ohio wells have produced approximately 8.6 trillion cubic feet of natural gas. The dollar value of natural gas produced in Ohio in 2011 was $310,659,568, a decrease of 14.2 percent from 2010. The value of the estimated volume of gas used on the lease was not used in computing the total dollar value. The average price per MCF in 2011 was $4.28, a decrease of $0.40 per MCF from 2010.

The combined value of Ohio oil and gas production in 2011 was $747,714,808 an increase of 4.1 percent from 2010.*

The accompanying charts (click to enlarge):

*Ohio Dept. of Natural Resources (Dec 3, 2012) – 2011 Report on Ohio Mineral Industries: An Annual Summary of the State’s Economic Geology

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