The Ohio Department of Natural Resources’ Division of Oil and Gas gathered information for all horizontal wells drilled and completed in the Utica/Point Pleasant formation(s) during 2012 and has compiled a 2012 Utica Shale Production Report. This report can be obtained from the organization's website.
To get a taste of how much the drilling activity in the Utica Shale formation has increased, I obtained the 2011 Utica Shale Production Report and compared the two. Some interesting points from the two reports are as follows:
- More than 10 different companies have Utica wells with production in 2012 whereas there was only 1 in 2011.
- Production reports were submitted for 85 wells in 2012 whereas there were only 9 submitted in 2011.
- The total amount of gas produced from the Utica formatted reported in 2012 was 12,831,292 (MCF’s) compared to 2,561,524 (MCF’s) in 2011.
- In the 2012 report, reported gas volumes likely include both “dry” and “wet” gas. Markets and pipeline capacity are limited, so production is likely choked back. Once processing plants are up and running, the produced “wet” gas volumes will dramatically increase. Gas production is significant, even with the early production numbers from wells that are restricted due to market conditions. Overall shale gas production from 80 wells represents approximately 16% of the total gas produced in 2012. Total gas production is based on production from about 50,000 conventional wells and the horizontal shale gas wells.
As can be demonstrated by the reports, the Utica formation production increased substantially during 2012, and as the pipeline capacity increases and additional drilling permits are given, production numbers are expected to continue to increase.
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