1 OOGA Oilpatch Snapshot

Oil & Gas Business Development Seminar October 9, 2012

Oilpatch Snapshot

Ohio Oil & Gas Industry Industry in Ohio for 152 years 275,774 oil and gas wells drilled 64,378 wells in produc?on

Produc?on Crude Oil

Natural Gas

2011 4,852,964 barrels

Total 1,141,380,706 barrels

2011 73,289,838 mcf

Total 8,593,388,085 mcf

Produc?on numbers es?mated based on available data, compiled by OOGA, oil reserve, gas reserve and the Department of Energy

2011 Wells Drilled

by County

460 total wells

As of Sept. 2, 2012 354 UKca Wells PermiMed

97 UKca Wells Drilled 27 Wells in ProducKon

≥ 20 wells

< 20 wells

What does Shale mean to Ohio’s Economy?

Ohio Oil & Gas Energy EducaKon Program www.oogeep.org

Economic Impact Study

Released September 2011

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

Itâ&#x20AC;&#x2122;s not the strongest of the species that survives, not the most intelligent, but the ones most responsive to change â&#x20AC;&#x201C; Charles Darwin

Predrilling Supply Chain Access (Lease) Road

• Construc?on • Aggregates • Surveying • Fencing • Equipment Rental • Environmental • Engineering

Picture provided by Chesapeake

Timeframe Up to 2 months Source: Marcellus Shale EducaKon and Training Center © MSETC, 2012

Drilling & Well Construction

• Trucks • Equipment rental • Water • Security

• Fuel • Aggregates • Maintenance/ repair parts • Housing/ hospitality

Timeframe Picture provided by Chesapeake

2‐4 months

Comple?on Supply Chain

Picture provided by Chesapeake

Timeframe Comple?on work: 2 months up Produc?on: up to 60 Years

• Water, Water and more Water • Meters/ monitoring • Refining • Product sales • Site Restora?on • Pipeline • Welding supply • Compressors • ROW Work

Shale – Growing Impact

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Opportunity Considerations

 Expor?ng  Financing  Logis?cs  Geographic loca?on  Teaming  Regulatory and Policy updates  Filling voids where businesses leave to service industry  Human Resources issues

 Support Services  Office reloca?on  Reloca?on of workers  Child care/educa?on  Medical  Entertainment  Food  Retail  Communica?ons  Temporary Employees

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Business Development Seminar Goals

• Overview of how the industry procurement process works • Opportuni?es within the supply chain • Tools to build a business plan to enter the oil and gas industry – Safety expecta?ons – Insurance requirements – Contracts – Marke?ng ideas

Ohio Oil and Gas Associa?on Mission:

To protect, promote, foster and advance the common interests of those engaged in all aspects of the oil and gas produc?on industry

The Associa?on advocates for the industry before the Ohio General Assembly, United States Congress, state and federal agencies and the general public.

Ohio Oil and Gas Associa?on OOGA contributes to members business and professional growth by offering a wide range of services, programs, products and money saving opportuni?es. Ac?vi?es are focused in four areas:

• Advocacy on a state and na?onal level • Informa?on sharing through monthly newsleeer, website, email alerts and report services • Educa?onal opportuni?es through industry specific training and informa?on sharing seminars • Economical programs to ensure compliance with state and federal regula?ons.

Ohio Oil and Gas Associa?on The Ohio Oil & Gas Associa?on (OOGA) is a trade associa?on with over 2,900 members involved in the explora?on, produc?on and development of crude oil and natural gas resources within the State of Ohio.

Kristy Hawthorne Director of Membership Services and Small Business Development

khawthorne@ooga.org 740‐587‐0444

www.ooga.org