HORIZONTAL DRILLING

By Dan McVey, Vice President & Chief Operating Officer — Gas Operations

Horizontal drilling has revolutionized the oil and gas industry, and its impact is significant in eastern Ohio. This advanced technique, combined with hydraulic fracturing (fracking), has unlocked vast reserves of natural gas and oil from shale formations, particularly the Utica Shale and Marcellus Shale. These shale formations are located thousands of feet beneath the surface stretching across much of eastern Ohio, extending into Pennsylvania and West Virginia. Horizontal drilling has enabled energy companies to access these deep resources that were previously uneconomical to produce with traditional vertical drilling.

In Ohio, production has been concentrated in 18 eastern counties, but it has been the strongest in a handful of counties near the Ohio River − Belmont, Harrison, Jefferson, Monroe, Carroll, Guernsey, Columbiana and Noble.

How It Works

Horizontal drilling involves drilling a vertical wellbore to a desired depth and then turning the drill bit horizontally to penetrate the shale rock layer. This method allows for greater wellbore exposure to the reservoir rock, significantly enhancing the extraction efficiency. This technique has been instrumental in tapping into the Utica Shale, a rich source of natural gas, oil, and natural gas liquids (NGLs) in eastern Ohio.

Economic Benefits

The boom in horizontal drilling has brought substantial economic benefits to eastern Ohio. Local economies have experienced a surge in job creation, from direct employment in drilling operations to indirect jobs in supporting industries like transportation, manufacturing, and hospitality. The influx of energy companies has also led to increased demand for local services and infrastructure improvements.

Landowners in eastern Ohio have benefited from leasing agreements and royalties, providing them with a steady income stream. Additionally, local governments have seen increased tax revenues, which have been used to fund public services, schools, and community projects. This economic uplift has been particularly significant in rural areas previously struggling with economic stagnation.

Environmental And Regulatory Challenges

Despite the economic advantages, horizontal drilling and fracking have raised environmental concerns. The process involves injecting a mixture of water, sand, and chemicals at high pressure to fracture the shale rock and release the hydrocarbons. This has led to worries about groundwater contamination, air quality issues and wastewater disposal.

In response to these concerns, Ohio has implemented stringent regulations to ensure safe drilling practices. The Ohio Department of Natural Resources (ODNR) oversees the permitting process, monitors drilling activities, and enforces environmental standards. Companies are required to disclose the chemicals used in fracking, adhere to well construction standards, and manage wastewater through approved methods such as recycling or deep well injection.

Future Prospects

Eastern Ohio continues to be dominated by natural gas production, where 2.2 trillion cubic feet of gas was produced last year. Although, with improved drilling techniques, oil production is also starting to surge. Oil production in Ohio hit a record 27.8 million barrels last year, up over 40% from 2022. Ohio has become one of the top 10 oil producers in the country. It was already one of the biggest producers of natural gas.

The future of horizontal drilling in eastern Ohio appears promising. Oil and gas production in the Utica area is still in the early stages and could go on for decades. As energy companies continue to refine their techniques and improve efficiency, the region is expected to remain a significant player in the natural gas and oil markets. The number of horizontal oil and gas wells producing in Ohio now tops 3,100. Total investment has been estimated at over $100 billion dollars.