State is outpacing rest of the nation in natural gas production
ST. CLAIRSVILLE—Gulfport Energy’s website opens with the words “Utica Shale, the Hottest Play in North America.” The company has 211,000 acres under lease in Ohio and claims “the phenomenal success we have achieved in the Utica Shale has solidified our position as a leading player in the prolific Appalachian basin.”
That enthusiasm is reflected in a recent analysis by Bloomberg Intelligence, which shows that Ohio’s Utica Shale has been increasing in production as other natural gas areas across the nation have been slowing.
Ohio accounted for about five percent of U.S. gas supply in August, up from less than two percent in 2014, according to the U.S. Energy Information Administration.
Bloomberg analyst Andrew Cosgrove said there are several reasons the output is still strong in Ohio. The number of wells that are online there has stayed pretty much flat, while it has dropped off at other formations, such as the nearby Marcellus Shale, he told American Gas. Also, the design of the wells in Ohio has been enhanced. “Wells are getting bigger. They’re getting more flow to the surface,” he said. “There are longer laterals, more stages.”
Some operators might also be spreading the production of their wells over a longer time period, so they see fewer declines in the first few months of operation.
Cosgrove anticipates good production numbers from the Utica Shale to continue. Some of the biggest companies operating in the area, including Gulfport, Chesapeake Energy Corp. and Rice Energy Inc., own wells that have already been drilled but have not yet been completed or connected to pipelines. They will be starting to produce, he said.
“I think production will stay pretty buoyant [in 2017],” he added.