Despite current global woes, the oil and gas industry is still booming in Ohio. Ohio shale and gas production doubled from 2015 through 2014, even as other production companies were pulling back; more importantly, this production was able to increase even though new drills had slowed down and prices were still being produced. What can the rest of the world learn from Ohio’s natural gas and oil production?
Ohio’s Increased Oil and Gas Production
Ohio was able to produce 21.9 million barrels of oil across the Utica shale in 2015, up nearly 100% from its 10.9 million barrel yield the prior year. But this is despite the fact that Ohio was drilling fewer new wells (and, naturally, despite the fact that per barrel prices www.punapharmacy.com had been drastically reduced). Rather than expanding during this time, Ohio was instead able to use hydraulic fracturing methods and new, unconventional technology to recover more from the wells that it had already developed. Ohio didn’t need to invest in further drilling and infrastructure; these new oil and gas recovery methods offered the opportunity to claim oil from wells that previously may have been depleted early on.
Not only did this mean that Ohio had to invest less money in drilling and exploration, but it also meant that production could be ramped up with very little effort and time. Other states were much harder hit by the oil downturn because they had invested a significant amount of money into expansion; just before the oil prices crashed, many drillers in other areas had invested in new drilling and new exploration. This meant that they needed to slow down their operations once the economic issues hit. Since Ohio was comparatively new to the seen, they could increase production rather than reduce it.
The Future of Ohio’s Oil and Gas Production
Ohio is still maintaining its oil and gas production, and is remaining modest: it’s not expected to drill more wells or expand its spending within the state. However, that may be exactly what Ohio needs to weather the storm that has currently hit the rest of the world and the nation. Ohio may be able to maintain its current level of production through austerity, and may be able to expand and grow based on a stable foundation once the prices recover in late 2016.
Ohio is clearly a unique environment for oil and gas production. Not only is it situated across the plentiful and easily drilled Utica shale, but it was also able to take advantage of its unique timing; it entered into the oil and gas industry just as many other drillers were having to slow down their operations. Ohio shows that slow, stable growth is often beneficial in any industry, especially an industry that may be prone to global volatility. It is possible that Ohio may be able to emerge from the oil and natural gas downturn entirely unscathed, as prices are expected to rebound fairly soon.
As for organizations in the oil and gas industry looking to similarly weather the storm, now is a good time to invest in the infrastructure that will be of use once oil and gas prices once again increase. Keystone Containment offers a wide variety of secondary containment measures and other vital quality control services, to build and maintain better work sites.