Ohio Gas & Oil Magazine January 2017

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Table of Contents JANUARY 2017

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A Look Ahead Gas & Oil Events

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Muskingum Program Meets Critical Need in Gas & Oil Industry

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Wayne County Firefighters Receive Specialized Oil Field Training

Andrew S. Dix ASDix@dixcom.com

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Counties to Watch: Belmont & Monroe

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NEXUS Pipeline Route Stays the Course in Wayne County

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Voters Support Gas & Oil Development

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Manufacturers Support Infrastructure Investment

G.C. Dix II GCDixII@dixcom.com David Dix DEDix@dixcom.com

EXECUTIVE EDITORS Ray Booth RBooth@dixcom.com

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Planning a Career in the Oil and Natural Gas Industry Is an Energizing Choice

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Wayne Forest Leases Generate $1.7 Million

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Ascent Resources Helps U.S. Marines Toys for Tots Program Congressman Johnson Joins In Effort

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New Battleground State Poll: Overwhelming Bipartisan Support for Energy Infrastructure Investment

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Wayne County Approves Road-Use Agreement with Rover Pipeline

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PUBLISHERS

Roger DiPaolo RDipaolo@dixcom.com Rob Todor RTodor@dixcom.com Lance White LWhite@dixcom.com

RE G IO NAL E DIT O RS Scott Shriner sshriner@recordpub.com Cathryn Stanley CStanley@dixcom.com Niki Wolfe NWolfe@dixcom.com

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Table of Contents JANUARY 2017 ADVER TISING Kim Brenning Cambridge, Ohio Office KBrenning@dixcom.com 740-439-3531 Kelly Gearhart Wooster & Holmes, Ohio Offices KGearhart@the-daily-record.com 330-287-1653 Mindy Cannon Alliance & Minerva, Ohio Offices mcannon@the-review.com 330-821-1200 Mark Kraker Ashland, Ohio Office MKraker@times-gazette.com 419-281-0581 Diane K Ringer Kent, Ohio Office DRinger@recordpub.com 330-298-2002 Janice Wyatt National Major Accounts Sales Manager JWyatt@dixcom.com 330-541-9450

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Stark State College Creates Programming to Meet Oil & Gas Career Demands

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Company Seeks to Drill Natural Gas Well

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Big Oil “Discovery” in Texas Not So Grandiose

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Industry Notices

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Ohio Well Activity Graph

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Horizontal Drilling Activity Graph

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UNITES EMPLOYERS & STUDENT

Training is an important aspect of education in the gas and oil industry. Inside, the Ohio Oil & Gas Energy Education Program provides a list of possible industry careers MarkWest and institutions that offer ,educational thon xpansion a r E a programs geared towards the gas and oil e M Ey industry.

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A Look Ahead

Ohio’s Gas & Oil Events • January 13, 2017 exhibitors’ row, and as always there will be plenty of The Ohio Geological Society: 19th Annual Winter Gala time for networking. Make plans to attend today! The Holiday Inn Columbus-Worthington. Cost is $25 per registration deadline is Wednesday, Jan 25, 2017 at 5 person. Dinner, drinks and music by Bill Foley. Please p.m. To learn more or register, go to www.pioga.org register and pay online by January 9th. https://ohiogeosoc.org/events/19th-annual-winter-gala/ • March 8-10, 2017 Ohio Oil & Gas Association Winter Meeting, Easton • February 1, 2017 Hilton, Columbus. This event brings together top state PIOGA Winter Meeting, Rivers Casino, Pittsburgh, and national industry leaders who will discuss current Pennsylvania. Join us to gain the knowledge you need to issues impacting the Ohio oil and gas industry. In succeed in these changing times for the oil and natural addition to the business sessions, vendors exhibiting gas industry. We are excited to present an array of products and services pertinent to the industry will distinguished speakers on topics such as economics, participate in the trade show portion of the event. Visit regulatory and legislative matters, and industry oogawintermeeting.com for more information. Early opportunities. This year’s meeting will feature an registration goes until February 17, 2017.

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Muskingum students Landis Bates, Mantua, Ohio and Miranda Bishop, Creston, OH discuss concepts of geographic information systems (GIS) with Dr. Stephen Van Horn (center), Associate Professor of Geology at Muskingum. Petroleum geology students utilize ArcGIS applications to study oil and gas fields in Ohio.

Muskingum Program Meets Critical Need in Gas & Oil Industry

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he oil and gas industry in the United States has changed dramatically over the last decade. There is immense pressure on the industry to meet an evergrowing demand for domestically produced fossil fuels and an equal emphasis on harvesting that oil and gas while making every possible effort to protect the environment.

In response to these challenges and opportunities, Muskingum University in 2014 created a new degree program, the bachelor of science in petroleum geology, adding to its already broad commitment to environmental education with majors including geology, environmental science, conservation science and earth science.

are needed to fill jobs within the growing oil and gas industry or in governmental agencies,” said Dr. Stephen R. Van Horn, Associate Professor of Geology and Chair of the Geology Department at Muskingum. He also pointed out that the degree can prepare students to pursue a graduate degree.

The petroleum geology major was a natural next step for Muskingum because it built upon the strengths of the university’s current geology department. Courses in Introduction to Well Logging, Sedimentary Petrology, Petroleum Geology and Subsurface Geology were added to the existing curriculum to create a complete academic offering.

“Graduates of programs like our petroleum geology degree The U.S. Bureau of Labor Statistics has estimated that Story continued on page 6

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Story continued from page 5

employment for geoscientists is projected to grow 16 percent from now until 2022, faster than the national average for all occupations.

away from campus to meet with and learn from working geologists from across the country is invaluable, as is getting exposure to real world oil and gas operations.

“The need for energy, environmental protection and responsible land and resource management is projected to spur demand for geoscientists in the future,” according to the Bureau’s Occupational Outlook Handbook.

To that end, a group of students and their faculty recently attended the American Association of Petroleum Geologists (AAPG) Eastern Section meeting in Lexington, Kentucky and later gained some valuable field experience not too far from campus.

As it turns out, both Muskingum and the Bureau were right in their assessments. Since the program was created, Dr. Van Horn pointed out, roughly 30 students have become involved with the geology department, and about half of those are pursuing the petroleum geology program either as their sole major or part of a double major. “That’s a very strong success for a comparatively new program,” he said.

“The impact of adding the petroleum geology program has been significant,” Dr. Van Horn explained. “We’re attracting excellent students who, in some cases, came to Muskingum specifically because we’re offering this major.”

The work required of students entering the program at Muskingum is as rigorous and challenging as the work those courses prepare them for. But, as Dr. Van Horn explained, class work can’t on its own prepare these students. Getting

Attending the AAPG conference were Chase Lash, a junior petroleum geology major from Canal Fulton; Dustin Bennett, a junior petroleum geology and political science major from Byesville; Landis Bates, a junior petroleum geology and environmental science major from Mantua; Ryan Lewton, a junior petroleum geology major from Martins Ferry; Michael Kennedy, a junior geology and petroleum geology major from Wooster; Ian McGougan, a sophomore petroleum geology major from Pickerington; Kayla Maze, a junior petroleum geology major from Belpre; and Jeremy Gerdau, a sophomore petroleum geology major from New Concord.

The students were accompanied by Dr. Van Horn and Associate Professor of Geology Dr. Eric Law. In addition to the group’s attendance, Bates, McGougan, Gerdau and Dr. Law made a poster presentation titled The Formation of Diagenetic Trap in the Squirrel Sandstone.

Both the conference attendance and the presentation were a big stage for the Muskingum students. Founded in 1917, the AAPG is considered one of the cornerstone organizations in the field of geology, with offices in London, Dubai, Singapore, Bogotá, Lagos and Washington, D.C. It has more than 40,000 members worldwide, including 8,000 students.

Students from Muskingum University and Kent State University took part in a tour sponsored by the Ohio Oil & Gas Association as part of their education in the gas and oil industry.

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Back in Ohio, a group from Muskingum joined some of their peers from Kent State University to go on a field tour of oil and gas producing sites in southeastern Ohio. The tour was conducted by 1980 Muskingum alumnus David R. Hill, who is President of the Ohio Oil and Gas Association and the second generation of his family to run David R. Hill,

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Incorporated, an oil and gas exploration company based in Byesville.

The tour included PDC Energy’s Utica Shale production pad near Senecaville, a visit to a Clinton Sandstone well and concluded at a Class 2 injection well.

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Taking in that experience, from the group that traveled to the conference in Kentucky, were Bennett, Bates, Lash and Kennedy. Joining them were fellow Muskingum students Kole Smith, a sophomore petroleum geology from Powhatan Point; Nathan Paddock, a first-year student from Middletown; and Kyle Gannon, a sophomore petroleum geology major from Pataskala. They were accompanied by Dr. Van Horn.

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“The value of these experiences outside the classroom simply cannot be overstated,” Dr. Van Horn said. “Class work is critical, to be sure, but these ‘real world’ encounters are not only valuable educationally, but it makes our students even more excited about their chosen profession. And we believe the well-trained, enthusiastic professionals that complete our program and graduate from Muskingum will go on to make some important contributions in this very important industry.”

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Wayne County Firefighters Receive

Specialized Oil Field Training

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ayne County firefighters recently completed said Lieutenant Dan Keller of the Wooster Fire Department. an intensive Oilfield Emergency Response Training Program conducted by the Ohio Oil During the two-day training program, firefighters learned and Gas Energy Education Program. field-tested tactics and procedures for combating potential drilling and production site incidents, evaluating oil and Firefighters representing the Central, South Central and natural gas emergencies, and obtaining valuable site-specific Wooster fire departments learned how to safely respond to information during an emergency. potential, but rare, oil and natural gas emergency incidents.

In total, 46 firefighters from 16 counties participated in More than 1,416 firefighters from across Ohio and seven the hands-on training program held at the Wayne County other states have successfully completed the program, now Regional Fire and Rescue Training Facility. in its fifteenth year.

“This is an excellent class, a need for all,” said Firefighter Seth Siedel of the South Central Fire Department. “This program was wonderful, hands-on, and I gained better knowledge of the oil and gas industry,” said Firefighter and EMT Ted Bracken of the Central Fire District. “I would recommend this workshop to other emergency responders” 8

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The first day of the program focused on distinguishing between normal operations and true oil field emergencies.

Classroom presentations provided an overview of Ohio’s oil and gas industry, including the processes and procedures used to develop these energy sources.

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On day two, firefighters received intensive hands-on training utilizing the OOGEEP outdoor fire-behavior lab. The training site includes several pieces of oilfield equipment designed to allow firefighters to experience and respond to potential oilfield incidents.

OOGEEP’s state-certified fire instructors assist firefighters at each of the hands-on stations.

“This information-packed and intensive two-day program emphasizes safety and best practices when firefighters engage oil and natural gas related operations,” said OOGEEP Executive Director Rhonda Reda. “Our state-certified instructors, many of whom are current or retired firefighters themselves, take pride in providing fellow emergency responders with this valuable safety information. It is because of our instructors that firefighters from across the nation look to OOGEEP’s training program as a

highly regarded model.”

The OOGEEP training program and curriculum was developed as a collaborative effort between Ohio’s oil and gas industry, government regulators, firefighters and emergency response experts. The course meets national and state fire safety standards and attending firefighters can earn required CEU credits as well as an optional graduate credit.

It is endorsed by the Ohio Fire Chief’s Association, Ohio Society of Fire Service Instructors and Ohio Fire and Emergency Services Foundation, and funded entirely by Ohio’s oil and natural gas producers.

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Counties to Watch:

Belmont & Monroe

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Jackie Stewart • Energy In Depth-Ohio s we wind down 2016 and look ahead to 2017, it’s time to stop and take look at how amazing Ohio’s Utica Shale production has been despite a significant pullback in drilling activity due to low commodity prices. After six years of exploration and production, Utica continues to break production records and the best wells continue the trend farther down the Ohio River. For the past few years, EID has been researching this trend and reporting what we see first-hand on the ground. Our extensive research and analysis has led us to select Monroe and Belmont counties as the Ohio Utica counties to watch in 2017.

in 2015, and we were correct, as more and more staggering natural gas production started coming out of this region that year. Still, Monroe County’s full potential has been impeded by bureaucratic inertia since 2011, as the Bureau of Land Management (BLM) adjudicated whether or not minerals could be leased for fracking. The process had seemingly no end sight, creating uncertainty for operators and, in many ways, bringing exploration in the county to a halt.

That could change this year, however, as the Wayne National Forest finally decided to allow leasing of federal minerals in Monroe County. Thanks to a recent Bureau of Land Management (BLM) lease sale that yielded $1.7 million to taxpayers, it’s very Monroe County likely that Monroe County will begin to see development move faster. This has been great news for the landowners who have EID chose Monroe County as one of the Utica counties to watch been anxiously awaiting the opportunity to have their land and

Belmont County Mohawk Warrior 12H, 10, 8H, Wells and County Hunter 2H Well Rice Drilling LLC Cravat N WHL BL 3H-A, Cravat S WHL BL 4H, Cravat N WHL GL 1H, Cravat WHL BL 2H Ascent Resources Utica LLC Conway 210119 and 210464 Wells Gulfport Energy Corporation

21,386,776 (Mcf) Over a 85-92 day period

Monroe County Brewster Well SWITZ6DHSU CNX Gas Company LLC Fuchs A 4H Well Eclipse Resources I LP

7,635,202 (Mcf) Over a 85-92 day period

Data obtained from Energy In Depth-Ohio 10 OhioGas&Oil

GasandOilMag.com

minerals developed.

It’s also great news for local schools, particularly Switzerland Local School District, which will now be able to collect property taxes from development off royalties from oil and gas production in the Wayne National Forest. Switzerland Township is already home to five out of the top 20 natural gas wells in the first three quarters this year, two of which were in the top five producing gas wells thus far.

Belmont County This is Belmont County’s third consecutive year on our “counties to watch” list, and considering it has the highest producing natural gas wells in the state, it really should come as no surprise. Four of the county’s townships — Wheeling, Smith, Washington and Goshen — are enjoying surges in natural gas production. Smith Township’s production surge has been driven

by Rice Energy’s incredible Mohawk Warrior wells, which have held top production spots in each of the first three quarters this 30  June 1, 2011 Phone 330­276­6508 year.

has invested $14 million to clean up the potential plant site in preparation for this massive investment. Still, a formal announcement to break ground has yet to take place. It was initially believed that the company looking at the site, PTT Global, would announce a formal commitment late this year, but it now appears that will take place in early 2017.

With so much production coming out of this region, the need for energy infrastructure such as pipelines, compressor stations, gathering lines and cracker plants simply cannot come soon enough. Once this energy infrastructure comes on line, it appears the sky is the limit for Belmont County moving forward.

Conclusion

In addition to having exceptional geology for natural gas exploration, Belmont and Monroe Counties have ideal access to roads, rail and the Ohio River — all of which are vital to supporting manufacturing and exporting services. Thanks to companies who have invested billions in exploring and The Vendor the Utica Shale area in Ohio, this region of the country producing 30  June 1, 2011 Phone 330­276­6508 The Vendor An anti­drug group in New York distributed free the cheapest natural gas prices in the world. With is enjoying An anti­drug group in New distributed free to school kids with theYork anti­drug message: Belmont County’s terrific geology isn’tpencils the only reason it’s once those facts pencils kids with the anti­drug message: considered, we look forward to watching these two Too Cooltotoschool Do Drugs. again a county to watch. It will also be potential home to counties next year and expect more great news to come from TooItthe Cool to Do started outDrugs. okay, but got worse and worse a multi-billion dollar ethane cracker when plant.

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NEXUS Pipeline Route Stays the

Course in Wayne County Bobby Warren • Dix Communications

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he Federal Energy Regulatory Commission has decided against an alternate route for the NEXUS Pipeline that would have moved construction through southern and western Wayne County instead of through Chippewa Township, and the news was bittersweet.

The FERC released the final environmental impact statement, acknowledging, “the projects would result in some adverse environmental impacts; however, these impacts would be reduced to acceptable levels with the implementation of NEXUS’s and Texas Eastern’s proposed mitigation measures and the additional measures recommended by staff in the final EIS.”

The pipeline, if approved, will cut through 6.6 miles of Chippewa Township.

Gary and Deb Adkins’ home is within 100 feet of the proposed pipeline in Chippewa Township, and they have opposed the project. Deb Adkins said she had just heard the news Wednesday, and she and her husband are going to have to look into it further to see what else can be done.

Many, including Green officials, were opposed to the project because it was moving through more populous, suburban areas. A Green route alternative was proposed to go through more rural, less populous areas, and had the FERC approved it, the pipeline would have entered the county through Paint Township in the southeast corner, and worked its way west through Salt Creek and Franklin townships before moving in a northwesterly direction though Wooster, Plain, Chester and Congress townships.

Lenny Broome, president of the Chippewa Township Board of Trustees, said he was “very disappointed the FERC didn’t choose the southern route.”

“There are enough gas lines in Chippewa Township already,” Broome said. While he was not speaking on behalf of the other trustees, he said, “We’re not going to say ‘yes’ to them. They’ll have to come to the table. They need to come to the safety and park areas. We want them to come to the table.”

The 255-mile pipeline was originally designed to come up from Kensington and travel north to meet up with a pipeline in Michigan and eventually make its way to Ontario, Canada. The 36-inch line will be capable of moving 1.5 billion cubic feet of natural gas a day and will not exceed a

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pressure of 1,440 pounds per square inch.

John Fitzpatrick, organizational director of the Wayne County Farm Bureau Federation, had mixed feelings about the decision.

“It’s very good news,” on the one hand, Fitzpatrick said, because “we do not need many, many miles more of pipeline in Wayne County.” The fewer acres of farmland disturbed, the better it is for agriculture.

However, his daughter and her husband have a home, and the pipeline will come close to it.

“Residents (in Chippewa Township) would be impacted anyway,” Fitzpatrick said. Part of the NEXUS plan is to provide some gas to Wadsworth and Green. If the main pipeline were to be moved, then there still would have been laterals installed in the area.

“The primary advantages of the route alternative are that it would cross 11.8 acres fewer of wetlands, 1 less WHPA (wellhead protection area), no state parks/forest lands, five fewer county/metro parks and 35 fewer homes within 150 feet,” the FERC reported in their final study. “Conversely,

the main disadvantages of the alternative are that it would have 16.2 miles more greenfield construction, 52.7 acres more forested land, 4.6 more miles of steep slopes and 5.8 more miles of sidehill construction.

“Rerouting the pipeline to less developed areas would shift impacts to other land uses, mainly forest/woodland, open land and agricultural land. Impacts on forest/woodland would constitute the most pronounced effect.”

Wayne County Commissioner Ann Obrecht said she appreciated how the FERC staff looked at the route and took farmland and the number of townships affected into consideration.

“They did their due diligence,” Commissioner Sue Smail said.

Reporter Bobby Warren can be reached at 330-287-1639 or bwarren@the-daily-record.com. He is @BobbyWarrenTDR on Twitter.

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Voters Support Gas & Oil Development

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Jackie Stewart • Energy In Depth-Ohio he U.S. Chamber of Commerce recently released a report, which explains what would happen if fracking were to be banned in Ohio and across the nation – and the results are not pretty. The report found that Ohio would lose 397,000 (predominantly union) jobs, $33 billion in GDP, and Ohio households would be hit with an extra $3,956 per year in cost-of-living expenses.

shipped overseas. In fact, some of the hardest hit areas were in Pennsylvania, West Virginia and Ohio, leaving the tristate, typically defi ned as the “Rust Belt,” suffering economically. When fracking came to the Marcellus and Utica shales, everything changed. Within a few short years, vacant plants along the Ohio River were given new life and thousands of new jobs were created. To date, there is a direct correlation with the uptick in manufacturing jobs, and oil and natural gas production. However, we would expect the number of manufacturing jobs to increase much faster once pipelines and infrastructure are built out—something that we are still waiting on in Ohio. The fact is that even though we have been drilling Utica Shale wells for almost 8 years, we are still in the infancy of what this development can actually yield for the Buckeye State. In short, natural gas development must happen if we want to see our manufacturing jobs come back.

Ohioans have a lot to lose with a ban on fracking, so it’s really no surprise that they made their voices heard at the polls. In Youngstown, for example, voters rejected an anti-fracking ballot measure for the sixth time in a row on Election Day. Not only that, but due to a Democratic platform that threatens to reject fossil fuel development, Ohio’s union households voted Republican in the presidential election by a margin of 52 percent, a major shift from 2012 when 37 percent voted Republican. In other words, Ohioans voted overwhelming for energy Another key fact is that Ohio has lost 10,000MW of production and all the benefits that come with it. electricity due to closed coal-fi red power plants, but thanks to fracking, we have billions of dollars in One area of production that will bring some of those investments pouring into the state, replacing lost power benefits is infrastructure. The building trades are with natural gas-fi red electric, and keeping our costs low. anxiously awaiting their opportunity for the thousands Without oil and natural gas, developed by fracking, the of jobs tied to $8 billion in pipelines and $7.8 billion in manufacturing of the products we use every day and the natural gas fi red power plants that are under construction ability to keep electricity costs low would not even be or currently pending approval. Not only will these possible. pipelines and natural gas power plants create jobs, they’ll also provide millions in tax revenues that are slated to go As we continue to develop Ohio’s Utica Shale, it’s to our schools. important to keep in mind that doing so will unlock a multitude of other benefits as well. In short, when it comes Elected officials in Harrison County have said there to oil and gas development in Ohio and a manufacturing are already millions in tax revenues coming in from rebirth—we are just getting started! We need to embrace these projects, but the real boon to the economy is just this opportunity and rally behind our domestic energy getting started. Fracking has led to a surge in critical sources. It’s time we become energy secure and start energy infrastructure—pipelines, natural gas compressor making things in Ohio again. stations, and power plants—which are in the works all over the state, and in turn will revitalize the entire state’s Jackie Stewart is State Director of Energy In Depth - Ohio. economy.

Energy In Depth (EID) is a research, education and public outreach campaign focused on getting the facts out about the That’s not all, Ohio has a once-in-lifetime opportunity to promise and potential of responsibly developing America’s really bring our manufacturing back, and to do that we onshore energy resource base – especially abundant sources must continue to develop Utica Shale. Only a few years of oil and natural gas from shale and other “tight” formations ago, the United States watched manufacturing jobs get across the country.

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Manufacturers Support

Infrastructure Investment

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Ryan Augsburger • Ohio Manufacturer’s Association hioans know what’s needed to help our investment that manufacturers need to compete in the 21st manufacturing community compete on the century. global stage.

It’s time to answer the voice of these voters who understand As a recent survey released by the National how important it is to improve and expand the pipelines Association of Manufacturers shows a majority of Ohio needed to get Utica Shale resources to market; to more voters believe investment in infrastructure would have efficiently transport products along our rivers and Lake Erie; a positive impact on the economy and create more good- and to safely move people and goods across our highways paying jobs. and bridges.

The voice of support for more investment, especially in energy infrastructure, is coming from all corners of the state, across party lines: 89% of Republicans and 84% of Democrats said investing in energy infrastructure would have a positive effect. A resounding 88% of self-identified environmentalists also expressed support for developing more energy infrastructure.

This is a united voice pushing for exactly the type of

Increased public and private investment in these critical systems has broad support among Ohioans because they know it will improve lives and get people to work as our manufacturing base continues to be revitalized. We need to act on this broad support now.

Ryan Augsburger is Vice President and Managing Director of Public Policy for the Ohio Manufacturers’ Association.

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Tranquil setting on this 77+ acre farm. Approximately 31 acres has been cleared while the remaining acreage is wooded. This property features has 3 homes (1907019072-19074). 19070 is a 4 bedroom/1bath; 19072-2 bedroom/2 bath and 19074 a 2 bedroom/1 bath. All three homes are neutral and updated. A barn/pole building and a small stocked pond. Gas well on the property as well as a spring; no septic. No mineral rights transfer. $379,900

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OhioGas&Oil 15

Planning a Career in the

Oil and Natural Gas Industry Is an Energizing Choice

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he crude oil and natural gas industry in Ohio is looking for a new crop of skilled individuals eager to meet the industry’s future workforce needs. Many believe the industry is positioned for historic growth in light of a likely renewed national focus on energy independence and domestic energy production. The mainstreaming of new technologies allowing for the safe, efficient and economical extraction of energy resources will only aid this projected expansion.

However, nearly half of the nation’s current crude oil and natural gas workforce is expected to retire within the next seven years, according to the respected industry data and analytics organization, Drillinginfo. This makes a career in the crude oil and natural gas industry a smart choice for many students mapping out educational options, according to the Ohio Oil and Gas Energy Education Program (OOGEEP).

“Ohio has seen record production in the areas of natural gas, crude oil and natural gas liquids,” said OOGEEP Executive Director Rhonda Reda. “With every record milestone, we see increasing feedstock material that will go to new and existing processing plants, refineries and chemical manufacturing facilities. These materials and facilities will play a major role in bringing back good paying jobs to eastern and southeastern Ohio.”

To connect students with these opportunities, OOGEEP offers educational scholarships for qualified applicants.

Students must be Ohio residents or planning to attend an accredited Ohio college, technical or trade school. Scholarship application details are available at oogeep.org.

OOGEEP is currently working with over 70 Ohio colleges, junior colleges, and career and technical schools that offer training for the 75 different careers serving the crude oil and natural gas industry. The schools help ensure students receive either fundamental educational training or highly technical scientific training for jobs that can be directly or indirectly related to the industry.

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These educational opportunities include a variety of programs from welding to equipment operators, mechanical technicians to construction coordinators as well as degrees in geology, engineering and chemistry.

“The exciting thing about the crude oil and natural gas industry is the diversity of opportunities for jobs seekers.”

—Rhonda Reda “There is something for everyone, from highly technical jobs requiring advanced degrees to skilled trades opportunities, young people looking at new careers have 75 different professions to choose from,” said Reda.

Many of these positions require hands on work and technical understanding. As a result, the curriculums and programs developed by higher education and training institutions, with input from the industry, include skill and competency development as well as relevant testing.

“The next phase of major activity in the crude oil and natural gas industry will revolve around getting the product to market in the safest and most efficient manner possible,” said OOGEEP Safety and Workforce Director Charlie Dixon.

“The careers involved in transporting these products are the backbone of the crude oil and natural gas industry, whether it is moving a drilling rig, pipe and other supplies or moving crude oil and natural gas liquids for refining or processing.”

Reda encourages students and other jobs seekers to visit OOGEEP’s website at oogeep.org for more information on available career opportunities as well as the training and educational requirements for the industry.

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Ohio Oil & Gas Energy Education Program WORKFORCE DEVELOPMENT CAREERS

OILEDUCATION AND GAS CAREERS IN OHIO SERIES AND TRAINING PROGRAMS

A-Tech American Professional Truck Driving School Ashland University Ashland West Holmes Career Center Baldwin Wallace College Belmont College Belmont-Harrison Career Center Big Rig Truck Driving School Bluffton University Bowling Green State University Buckeye Career Center Capital University Career and Technical Education Centers (C-TEC) Case Western Reserve University Cedarville University Central Ohio Technical College Central State University Cincinnati State Technical and Community College Cleveland State University College of Wooster Columbiana County Career and Technical Center Columbus State Community College Cuyahoga Community College Cuyahoga Valley Career Center Denison University Eastern Gateway Community College Franklin University Great Lakes Truck Driving School Heidelberg University Hobart Institute of Welding Technology Hocking College Kent State University Lorain County Community College Mahoning County Career & Technical Center Maplewood Career Center Marietta College Miami University Mid-East Career and Technology Centers Mount Vernon Nazarene University

Muskingum University North Central State College Ohio Dominican University Ohio State University, The Ohio University Ohio Wesleyan University Owens Community College Penn State Pierpont Community and Technical College Plumbers and Pipefitters Local Union 94 Polaris Career Center R.G. Drage Career & Technical Center Rhodes State College Shawnee State University Sinclair Community College Southern State Community College Stark State College The University of Findlay Tiffin University Tri-County Adult Career Center Trumbull Career & Technical Center University of Akron University of Cincinnati University of Dayton University of Mount Union University of Northwestern Ohio University of Rio Grande University of Toledo Walsh University Washington County Career Center Washington State Community College Wayne County Schools Career Center West Virginia Northern Community College West Virginia University Wilmington College Wittenberg University Wright State University Youngstown State University Zane State College

For more information, please visit www.oogeep.org/industry-workforce/careers.

Ohio Oil & Gas Energy Education Program P.O. Box 187, Granville, Ohio 43023 Phone: (740) 587-0410 | www.oogeep.org

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OhioGas&Oil 17

Ohio Oil & Gas Energy Education Program OIL AND GAS CAREERS IN OHIO SERIES

Automation Technician Business Analysis Advisor Business Development Business Unit Vice-President Chemical Engineer / Chemist Community Relations Advisor Completions Engineer Completions Superintendent Construction Coordinator or Technician Controller Derrickhand Development Advisor Diesel Mechanic Division Order Analyst Division Order Coordinator Drilling Engineer Drilling Superintendent / Tool Pusher Drilling Technician Electronics Technician Engineering Technician Environmental, Health, & Safety Advisor Environmental, Health, & Safety Field Coordinator Equipment Operator: Cementing Equipment Operator: Coiled Tubing Equipment Operator: Fracturing & Acidization Equipment Operator: Heavy Equipment Equipment Operator: Logging Services Equipment Operator: Service Tools Facilities Engineer Facilities Operator Field Engineer (cased-hole) Field Operations Financial Analyst Floorhand Fundamentals Analyst Geologist Geophysicist Geoscience Technician Government Affairs Analyst

Human Resources Advisor Instrumental & Electrical Technician JIB Accountant Land Coordinator Land Mapping Technician Land Negotiator Land Surveyor Landowner Relations Coordinator Lease Analyst Lease Operator (Well Tender/Pumper) Lease Records Coordinator Legal (Attorney) Maintenance or Mechanical Technician Mud Engineer Mud Logger MWD Field Engineer (Measurement While Drilling) Natural Gas Balancing Analyst Natural Gas Controller/Scheduler Natural Gas Marketing Representative Office Services Coordinator Petroleum Engineer Plant Coordinator Production Assistant Production Coordinator Production Services Representative Records Coordinator Regulatory Analyst Rental Analyst Reservoir Engineer Revenue Accountant Roustabout Supply Chain Procurement Coordinator Technical Services Maintenance Coordinator Transaction Analyst Truck Driver Water Systems Engineer Welder Welder Helper Workover / Service Rig Supervisor

For more information about each career, including their description, typical education, and lists of schools, please visit www.oogeep.org/industry-workforce/careers.

Ohio Oil & Gas Energy Education Program P.O. Box 187, Granville, Ohio 43023 Phone: (740) 587-0410 | www.oogeep.org

18 OhioGas&Oil

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Wayne Forest Leases

Generate $1.7 Million

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Jackie Stewart • Energy In Depth-Ohio his week the Bureau of Land Management (BLM) hosted an online competitive auction sale of federal minerals located under the surface of the Wayne National Forest. The BLM auctioned off 719 acres for a total sale of over $1.7 million. On average, each acre sold for $2,416.85.

Perhaps that’s why the Monroe County Commissioners, local schools, landowners, and practically everyone in the county supported leasing the forest in the first place. Not only have they watched their sales tax revenues increase by 340 percent from oil and gas development on private lands, they are going to realize a boost from leasing county public lands as well. As the bi-partisan Board of County Commissioners in Monroe County said in a support letter to More importantly, the local government will see a portion lease minerals in the Wayne National Forest, of this sale, as well as a portion of the royalty payments. In this case, the sale included leases with a royalty requirement “Since 2008, mineral development has generated more of 12.5%. than $460,000 for local governments. In 2014, Monroe County received $33,286 in PILT, of which there was no Because the Wayne National Forest is public land, the area monies received from federal minerals. Sir, in addition to does not benefit from the revenues of private property our concerns over lack of PILT payments, we also find this taxes, which typically support schools, roads, bridges, and matter concerning from a perspective of ‘The Secure Rural government services. Monroe County in particular has to School and Community Self Determination Act of 2000’, grapple with this as Wayne National Forest covers tens of which is another source of funding received from the Wayne thousands of acres. Instead of property tax payments, the National Forest that provides payments to fund important Bureau of Land Management instead pays Payment in Lieu local services, such as schools and roads. A delay and/ of Taxes (PILT) to counties that contain the forest. or a determination by BLM that would impeded Monroe County’s ability to realize additional funding from these Here’s how it works: funds are returned to the states annually sources would not be in the best interest of the county.” and then distributed to the counties based on national forest acres within the county, (a system which has been in place Indeed, it would not be. Once again, taxpayers are the winner since 1908). So, for Monroe County, leasing federal minerals when it comes to the development of oil and gas in Ohio. in the most prolific dry gas region of the state will in fact be a windfall for local governments over the next few years.

For example, take a look at the receipts in 2014 from the national forest to Monroe County (pictured at right).

As you will clearly see, they received no money from federal minerals as there was no development then.

With WNF leasing going ahead, all that will change for Monroe County.

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OhioGas&Oil 19

Ascent Resources Helps U.S. Marines

Toys for Tots Program

Congressman Johnson Joins In Effort

I

t may have been a bit early, but the Santa Claus spirit was brought home to some 30 local families in the Guernsey County area on Wednesday, Dec. 14.

At the Ascent Resources field office in Cambridge, more than 30 local families were able to stop by and bring home a little holiday magic.

The effort in Cambridge was led by the Southeast Ohio Coordinator of Toys for Tots, Deborah Oberlin, and the team at Ascent.

Deborah said, “Ascent Resources stepped up in a big way to sponsor and host this year’s toy distribution. They collected over $8,000 in toys, games and dolls for needy families in Guernsey County from vendors and Ascent staff to show they care about their community and its residents.”

Also stopping by was U.S. Congressman Bill Johnson who

20 OhioGas&Oil

helped parents select toys for their little ones. Upon learning that the effort was still short in funds, Johnson donated the remaining balance for the rental of the box truck that was being used to pick up the collected toys to ensure no detail was overlooked.

Congressman Johnson said, “The Marine Toys for Tots Foundation does great work, and it’s great to see Ascent Resources give back to the community by leading an effort to make sure that more local children will get toys - and hope - for Christmas. Just to play a very small role in this effort is very rewarding and brings a lot of joy to my heart.”

The Cambridge Area Chamber of Commerce was also represented by President and CEO Jo Sexton. Sexton said, “We are grateful to have a community partner like Ascent Resources in town that shows what this time of year is all about. They’ve really helped provide some local families with joy this Christmas.”

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Mike Chadsey, Amanda Finn with Ascent Resources, Congressman Bill Johnson, Deborah Oberlin with Toys for Tots, Joe Steele with Ascent Resources.

existence nationwide since the Christmas of 1948. Originally started by a Major Bill Hendricks in 1947 and some fellow Marines it has spread to many communities across the country.

Internally, the effort was led by Joe Steele, EHS Specialist at Ascent. Joe helped rally his colleagues and is proud of what the staff at Ascent was able to accomplish, in terms of the time they donated and the gift contributions made.

In addition, this event would not be possible without the vendor/contractor partners and their donations, and special thanks to the Target in Wheeling for helping funds go further during the shopping process. This is Ascent Resources third year hosting the program and according to Joe, they will be back next year even bigger and better.

The U.S. Marines Toys for Tots program has been in

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New Battleground State Poll: Overwhelming Bipartisan Support for Energy Infrastructure Investment

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Clear Majority of Voters Say Development of Pipelines, Power Lines Will Spur Job Creation, Boost the Economy

ore than 80 percent of Pennsylvania, Ohio and Virginia voters believe public and private investment in infrastructure, including energy infrastructure, would have a positive impact on the economy, according to a new series of surveys released today by the National Association of Manufacturers (NAM).

While news headlines focus on partisan fighting and a divided American electorate, the NAM surveys find a source of common ground: energy infrastructure. Clear majorities in each state support increasing domestic energy production, and more than 80 percent support increased investment in power lines, pipelines, power plants, refineries and railroads, which all play a key role in manufacturing’s competitiveness.

“It’s time to finally make critical investments in our infrastructure that will support domestic energy development,” said NAM President and CEO Jay Timmons.

“Americans understand that we have the opportunity to allow projects to move forward that will grow our economy and keep manufacturers of all sizes competitive. It’s not hard to see how modernizing our energy and transportation infrastructure will create good-paying American jobs. Voters clearly recognize this and are demanding action from Washington.”

Investing in energy infrastructure has broad bipartisan support among registered voters in what were key battleground states in the 2016 election: • 91% of Republicans and 81% of

22 OhioGas&Oil

Democrats indicated they support increasing investment in energy infrastructure.

locks and dams along the Ohio River, to • 86% of self-identified environmentalists maritime and transportation infrastructure and 89% of union members also support along Lake Erie, public and private investment in these areas will help get increased investment.

Ohioans working again and revitalize our • When it comes to expected outcomes manufacturing base for years to come.” from increasing our investment in infrastructure, 61% say it will create good- Brett Vassey, president and CEO of the paying jobs and 64% believe that investing Virginia Manufacturers Association, in energy infrastructure will help build a commented, “Manufacturing drives Virginia’s economy and directly supports stronger economy. more than 230,000 high-paying jobs across NAM affiliates in Pennsylvania, Ohio and the Commonwealth, so voters recognize Virginia lauded the findings as further the sector’s important role. Given the evidence that infrastructure investment recent energy infrastructure investment will enhance manufacturing in their states. and development projects across the Commonwealth, it’s important to note “Pennsylvanians understand that to be that more than 80 percent of Virginia able to produce energy in Pennsylvania voters support these efforts because they and get it to customers, we need realize that they create jobs and strengthen reliable infrastructure,” said David our economy. We look forward to working Taylor, president of the Pennsylvania with the NAM and our partners in Manufacturers’ Association.

“They Washington to ensure that infrastructure also understand that our families and investment and smart regulatory reform communities will be better off when we efforts remain a high national priority.” invest in that infrastructure-from pipelines, ports and power lines to airports, bridges, The research was conducted via landline roads and waterways. We have a unique, and cell phone from November 28 through generational opportunity to move the December 3, 2016. The sample size for Commonwealth and our nation forward each state was 500 registered voters in by leveraging our energy resources into 2016. Margin of error = +/- 4.38 per state. much-needed job creation.”

Additional information on the state Eric Burkland, president of the Ohio surveys is available below: Manufacturers’ Association, said, “Buckeye State voters overwhelmingly • Pennsylvania • Ohio • Virginia support infrastructure investment because they know it will improve standards of To learn more about manufacturers’ policy living. From pipeline infrastructure to priorities and the benefits of infrastructure get Utica Shale resources to market, to and energy development, visit www.nam.org/ competingtowin.

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Wayne County Approves Road-Use

Agreement with Rover Pipeline

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Bobby Warren • Dix Communications road use maintenance agreement with Rover Pipeline that will “preserve” county and township roads was approved during the Wayne County commissioners’ regular, weekly business meeting on Nov. 30.

Rover has secured a $1 million bond to cover the repairs to any roads along the haul route. The agreement is with Rover and the county, plus any of the affected townships.

The trustees were allowed to sign onto the RUMA as “owners,” giving them the same protections and rights as the county.

“I want to thank Andrea for all of her time,” Commissioner Sue Smail said. “She spent many hours negotiating with Rover. I think the agreement will protect the roads.”

Commissioner Ann Obrecht thanked Conn for his cooperation with Uhler in reaching the agreement.

Rover expects to receive final approval from the Federal Energy Regulatory Commission by the end of the year or early 2017, Uhler said. Upon approval, Rover is expected to begin construction in the spring.

Reporter Bobby Warren can be reached at 330-287-1639.

The agreement will allow Rover to bring in pipe and equipment over a dedicated route, and it will preserve county public and township public roads, Assistant Prosecutor Andrea Uhler said. Rover will take care of repairs and work with the Wayne County Engineer ’s Office.

Larry Conn, manager of engineering services for the Engineer ’s Office, said there are still a few details to be worked out, however, Rover representatives have agreed in principle.

Those items include: • Minor changes to road names.

• Rover considering to “pre-engineer” Elyria Road ahead of the construction of a compressor site because it might need to be built up before handling excessive truck traffic going to and from the site.

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• Some remaining permits for drive pipes need to be applied for, along with special hauling permits for oversized and overweight vehicles (separate permits might be needed for township roads).

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“My understanding, through Andrea (Uhler), is that all will be submitted,” Conn told the commissioners.

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• Road condition reports and videos on both county and township roads will need to be submitted and approved before construction.

www.smithevergreen.com smithevergreen@neo.rr.com OhioGas&Oil 23

Stark State College Creates

Programming to Meet Oil & Gas Career Demands

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Chelsea Shar• Dix Communications Photos By Kevin Graff any students c o m b i n a t i o n , ” may be said Para M. Jones, n e r v o u s president of Stark about being State College. able to find a job that can support them upon graduation, but the The event is the first employers crowd of students at Stark State College’s time students downtown Canton satellite branch are and prospective already getting propositions from future or students have met employers in the gas and oil industry. in a single evening The downtown Canton satellite branch event held by the hosted its inaugural Oil and Gas Bash on college. The college Dec. 6, welcoming industry companies just started offering accelerated Ashley Korbas, left, account manager with InnoSource, talks hiring in Ohio and students who are or an program with Curtis Goebler, center, and Marta Bixler, students at Stark soon will be looking for a job in the field. degree that takes only 18 State’s satellite program, who attended Marlington High Future pipeline technicians and months to complete School and took the gas and oil program there. The Stark State processing operators walked around the that has attracted satellite campus hosted an event to help students meet possible satellite building, meeting with businesses students from all employers and to learn about the field. that are hiring for their jobs today or in over the state. hands-on training. the near future, including companies like Marathon, Goodyear Tire and Rubber, A $500,000 grant from Gov. John Kasich’s Education Innovation program made Chevron also partnered with the college Dominion and others. the major possible. The grant provides to help provide the rest of the scholarship “This is the perfect opportunity to connect ShaleNET education and training to money students may need to complete the employers with students, it’s a winning students at Stark State’s sister schools, 18-month program. Other scholarships are Eastern Gateway offered for students not in the 18-month C o m m u n i t y accelerated program.

College in Steubenville and The college will offer six majors related to Hocking College in the gas and oil industry.

Nelsonville. As part of the 18-month The program is designed for both program, in the traditional and non-traditional students, summer those and graduates will have the skills for students can stay at midstream and downstream jobs upon Malone University graduation. for 10 weeks and use Stark State’s Two Stark County graduates from From left, Ben Brodzinski of Louisville, Justin Pica of New $3.7 million Well Marlington High School’s Class of Philadelphia and Chai Vue of Akron talk to Tina Navarro-Misel, Site Training Lab 2016, Marta Bixler and Curtis Goebeler, operations supervisor, at the Dominion booth at Stark State’s to complete their attended a career tech program at their downtown Canton satellite center.

24 OhioGas&Oil

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Students and people interested in jobs in the gas and oil field visited Stark State’s Downtown Canton satellite center on Dec. 6 to talk to various companies and learn about the school. high school geared toward the gas and oil trade. They are now students at Stark State and as first-year students said they aren’t worried about their job prospects when they graduate.

Todd Feemster, left, and other guests tour the lab facilities with Don Ball, right, Dean of Engineering and Technology at the Stark State Downtown Canton satellite center.

For more on Stark State’s oil and gas program and scholarships, go to www.starkstate.edu/oilandgas.

Todd Feemster, left, and other guests tour the lab facilities with Don Ball, right, Dean of Engineering and Technology at the Stark State Downtown Canton satellite center.

Ball demonstrates a PIG testing device.

WO-10495384

Walt Summerkill, of Navarre, is 27 and in his final year of the oil and gas program. He talked to some future employers at the Oil and Gas Bash and said he heard about the program from a friend who got a job right after he graduated.

“My best friend got hired at Dominion right out of this program. Word is the industry is really picking up,” he said, adding he is not worried about finding a highpaying job in a few months.

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OhioGas&Oil 25

Company Seeks to

Drill Natural Gas Well Marsha McKenna • Dix Communications

A

proposal to drill a natural gas well on private property adjacent to Kimpton Middle School may be in the Board of Education’s future to consider.

Beck told the Stow Sentry on Dec. 8 that he did not have any formal proposals prepared for either the Armbrusts or the school district at this time. He said his presentation at the Dec. 5 meeting “was a chance to tell them what I’d like to do.” He said he would like to start drilling next David Beck of Beck Energy in Ravenna told Board summer if the details can be agreed on. members at their Dec. 5 meeting that he is working with the Armbrusts who own 27 acres at 500 North River Landowner James Armbrust also addressed the Board Road in Munroe Falls to drill a natural gas well on on Dec. 5, saying he had done research on the matter their property. The well would be totally on the private and “we’re very comfortable with having Beck Energy property, located on its northern point, adjacent and putting a well there.” directly east of Kimpton, which is at 380 North River Road.

He said the financial benefits would help with the cost of taxes on the property.

Beck explained that to get state approval, he must have a unit of 40 acres and the cooperation of any landowner Developing the property was not an option the family within 500 feet of the proposed drilling site. wanted to consider, he said. “We want to keep it wooded, in its natural state as much as possible.”

“I need to use some acres on Kimpton Middle School to make a drilling unit,” Beck said. For the district, it He said the well would be located 300 feet off the back would be a non-drilling lease of about 13 acres, with of the property and 300 feet from the side. “As Mr. Beck no easement, right-of-way or entrance onto the school mentioned, you wouldn’t see it.” property. The well cannot be within 200 feet of an occupied building, such as the school and would not be When asked if he had contacted the city’s administration, visible.

Beck said he had not. He referenced past disputes with the city, saying he is “regulated at the state level — the first person I answer to is at the state level.”

“It is not my intent” to have students and staff look out windows and see a pumping unit.

Beck Energy and the city have been fighting in court over local control since 2011, first in the Summit County Court of Common Pleas, then the Ninth District Court of Appeals and finally the Ohio Supreme Court. The city

—David Beck In the case of a natural gas well, it consists only of a pipe sticking out of the ground with a tank battery and meters for safety, he told the Stow Sentry. “We will have a fence around it and it will be locked for safety.”

In exchange for the lease, Beck told the Board, the district would receive a signing bonus and monthly royalties for a period that could be up to 20 to 25 years.

The landowners would receive free gas in addition to royalties, he added.

26 OhioGas&Oil

GasandOilMag.com

has argued that the issue is one of home rule while Beck Energy contends that it would be too onerous for drillers to have to follow numerous local ordinances.

A 4-3 Ohio Supreme Court decision in February 2014 ruled that the state has “sole and exclusive authority” over regulation of oil and gas wells and it resulted in the city removing ordinances on its books regulating drilling operations because the decision made them unenforceable.

FILL UP

In the case, Beck Energy obtained permits from the Ohio Department of Natural Resources to drill in an area zoned for residential uses along Munroe Falls Avenue.

The city challenged the location at 224 Munroe Falls Ave., saying local zoning rules prohibited drilling in the area; instead, drilling should be focused in industrial areas.

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In their decision, justices noted that home rule provisions in the state constitution do “not allow a municipality to discriminate against, unfairly impede or obstruct oil and gas activities and production operations that the state has permitted” under state law.

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Munroe Falls Mayor James Armstrong confirmed to the Stow Sentry that he had not been contacted about the proposed natural gas well. Given court decisions, “it’s unlikely the city really has a whole lot of say in that,” he said.

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Beck told the Stow Sentry on Dec. 8 that if and when leases are obtained and plans finalized, the city would be notified and included in the steps.

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He noted Beck Energy has had a well at the Twin Falls United Methodist Church on North River Road for eight years, giving the church natural gas and royalties.

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When asked what the dangers could be, Beck responded “the biggest question is, ‘will you hurt the water?’ We have a lot of people making sure it’s done safely.”

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“We are a responsible company. We would not approach [drilling] if we didn’t think we could do it safely,” Beck said.

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OhioGas&Oil 27

Big Oil “Discovery” in Texas Not So Grandiose A look at the news surrounding the Permian Basin and its recent oil development.

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Jacob Runnels • Dix Communications n November, 2016, the U.S. Geological Survey (USGS) released an evaluation of the Wolfcamp shale in Texas’ Permian Basin stating it could contain 20 billion barrels of oil.

If one were to look to news sources like USA Today, they would read how the shale play “contains 20 billion barrels of oil” — if one were to look to Bloomberg Markets, they would read how the shale play could have enough oil to be “second

only to Saudi Arabia’s Ghawar field.” With this information, one would think a plentiful reserve of oil was just now discovered, putting the United States at a great advantage in domestic oil production.

“They didn’t discover a damn thing,” said Jim Halloran, vice president at PNC Wealth Management. “[The word ‘discovery’] gets people confused as to what we have in the way of resources in this country. It’s just someone wanting to quantify something that’s generally there.”

Halloran said the word “discovery” isn’t used properly when assessing the oil estimate made on the Permian Basin.

He said the word is being misused along with “resource” and “reserve.”

With resources, he said those are what is estimated that could be extracted. He said resources are measured without considering factors like time or what technology would extract it.

“They didn’t draw any wells, they didn’t tap into any existing wells and they didn’t look at anything that says we found oil here,” Halloran said. “We’re estimating there’s oil there and — forgetting time, cost and other things — we could get 40 billion barrels of oil there in the future but that could take anywhere from 20 to 200 years.”

However, he said a reserve is used to measure what is actually there. This means there were wells drilled to prove it’s there, it can be extracted using current technologies, and it can be done “on a commercial basis to make money on it.”

According to the USGS, while there’s an initial estimate of 20 billion barrels of oil potentially available, there is also a 95 percent chance it could actually be 11 billion barrels and a 5 percent chance it could be 31 billion barrels. There is also an estimated 16 trillion cubic feet of natural gas potentially available, with a 95 percent chance of there being 7.800

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trillion cubic feet and a 5 percent chance of there being 27 trillion cubic feet.

Berman said the Permian Basin and the current technology being used to extract oil shouldn’t be underestimated.

With this in mind, Halloran said the same happened with the Marcellus formation in 2012, where the amount of estimated gas in Pennsylvania had predicted large numbers of available natural gas. He said this is a part of “continuing estimates” on national resources and is more about updating old information about what could be available.

According to the EIA, the United States consumed around 7 billion barrels of oil in 2015. Berman said, if it was possible to get 2 to 3 billion barrels of oil in reserve based on the USGS estimate, it would provide a “considerable volume of oil” for the United States. He said the Permian Basin estimate would then be able to be considerable in the big picture of American oil consumption.

The Bloomberg report shows there is a possible $900 billion to be made with the “discovery” made in the Permian Basin.

However, because it’s a resource and not a confirmed reserve, the technology used or costs associated with extracting the oil can’t be accounted for yet.

Geological consultant Art Berman, who has written about what the Permian Basin has to offer, said the estimated amount of oil could cost more to extract — given current technologies and costs associated — than the possible $900 billion (from Bloomberg) value offers. Berman said, in a theoretical situation involving the 20 billion barrels being a confirmed reserve, there could be a “huge money-losing proposition” if enough wells were to be constructed for such a large job at the current price of crude oil ($50 a barrel at the time of this writing).

However, he said the news of the USGS estimate could be misleading to those who are unfamiliar with the technical side of oil and gas.

He said with the wrong kind of information, the farce of being energy independent could be spread around, which could influence politicians when deciding on policies for oil and gas extraction regulations.

Overall, Berman said there are areas the oil industry chooses to stay away from due to being less prospective. This USGS estimate was an example of what could possibly be extracted, but shouldn’t be considered a definite number available.

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In a situation where the estimate resource involves 20 billion barrels, Berman said there would most likely be 15 to 25 percent of that resource actually being available to extract, which would be around 2 to 3 billion barrels possibly extracted.

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“If this play is 2 to 3 billion barrels, that’s a reasonable number and it’s… a considerable volume,” he said. “Although it’s speculative because it’s noncommercial today.”

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If the Permian Basin was able to produce 2 to 3 billion barrels of oil a day, what would that mean compared to Saudi Arabia’s Ghawar field? In 2015, OPEC stated there are about 266 billion barrels of oil in reserve, which would place whatever would make the possible 2 to 3 billion barrels produced by the Permian Basin to be a drop in the bucket compared to the Ghawar field.

Even though there’s not much oil that could be produced,

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“I’m not trying to minimize this non-discovery, but I think it’s important you put it into some context,” he said. “It’s worth paying attention to, it’s not going to change the future of U.S. oil supply very much and it’s not very significant in the global scheme of things.”

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Industry Notices NOTICE OF OHIO OIL AND GAS ENERGY EDUCATION PROGRAM AMENDMENTS In accordance with Ohio Revised Code Sections 1510.04 and 1510.05, the Ohio Department of Natural Resources, Division of Oil & Gas Resources Management, Technical Advisory Council, hereby notifies all interested parties that they are in receipt of proposed Program amendments. The amendments were submitted by the Ohio Oil and Gas Energy Education Program, along with qualified petitions signed by Ohio producers.

Copies of the proposed Program amendments are available by contacting the Ohio Oil and Gas Energy Education Program, P.O. Box 187, Granville, OH 43023, (740) 587-0410, rreda@oogeep.org.

All comments should be mailed directly to OOGEEP and must be postmarked no later than January 20, 2017.

NOTICE OF REFERENDUM VOTING PERIOD In accordance with Ohio Revised Code Section 1510.05, the Ohio Department of Natural Resources, Division of Oil & Gas Resources Management, Technical Advisory Council, has established a three-day voting period of March 8 – 10, 2017, during which eligible producers may vote either in person during normal business hours, or by mail-in-ballot, to approve or disapprove of amendments to the Ohio Oil and Gas Energy Education Program at any of the following established polling places: Ohio Oil and Gas Association’s Winter Meeting, Hilton Columbus at Easton, 3900 Chagrin Drive, Columbus, OH 43219 Southeastern Ohio Oil and Gas Association’s Office 214 1/2 Warner Street, Marietta, OH 45750

NOTICE OF REFERENDUM BALLOT REQUEST FORM In accordance with Ohio Revised Code Section 1510.05, the Ohio Department of Natural Resources, Division of Oil & Gas Resources Management, Technical Advisory Council, hereby publishes this “Ballot Request Form” for any qualified producer that would like to vote by mail in the Referendum to be held on March 8 – 10, 2017, to approve or disapprove of amendments to the Ohio Oil and Gas Energy Education Program.

REFERENDUM BALLOT REQUEST FORM I am a qualified Ohio producer, as defined in Ohio Revised Code 1510, and hereby request that a mail-in-ballot be sent to the following address. I further recognized that it is my obligation to make sure this is returned to the Ohio Oil and Gas Energy Education Program, P.O. Box 187, Granville, OH 43023, and postmarked no later than March 10, 2017.

Name: ______________________________ Company: ______________________________________________ Address: ____________________________ City: ____________________ State: ______ Zip Code: _________ Remit this Ballot Request Form to: OOGEEP, P.O. Box 187, Granville, OH 43023

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OHIO WELL ACTIVITY by the numbers

MARCELLUS SHALE

15 Wells Permitted Wells Drilling 8 Wells Drilled Not Drilled 21 Wells Producing Inactive Plugged 44 Total Horizontal Permits

458 143 250

UTICA SHALE

Wells Permitted Wells Drilling Wells Drilled Not Drilled 1 4 7 2 Wells Producing Inactive Plugged 2323 Total Horizontal Permits

Data as of 12/10/16 Source: Ohio Department of Natural ResourcResources

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TOP COUNTIES WITH HORIZONTAL DRILLING ACTIVITY

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