Newfound Ohio Utica Shale Oil Play Yielding Results

Recent data from the Ohio Department of Natural Resources (ODNR) confirms an emerging Ohio oil play with untapped potential. Traditionally thought of as a natural gas play, new technologies have unlocked oil production in the Utica Shale that continues to grow: 70 percent since 2021 with 40 percent annual growth from 2022 to 2023.  

The first quarter (Q1) production results from ODNR indicate the state produced 7,227,503 Bbls of oil, continuing its upward trend. If these numbers continue, 2024 will be a record oil year for the state.  

(ODNR)

News of this untapped market continues to raise eyebrows. The Youngstown Business Journal reported on Q1 results, saying:  

“Columbiana County’s section of the Utica – traditionally known for its high volumes of natural gas and wet gas – has for the past year delivered skyrocketing oil production that is out of character for the northern tier of the play.” (emphasis added) 

Similarly, Hart Energy reported on EOG Resources investing in the combo play, with EOG chairman and CEO Ezra Yacob recently declaring: 

“It’s funny, right? When you take the blinders off and you come with a different perspective from different basins, it’s amazing the things that you can uncover….” 

EOG executives told investors in May that the Utica oil play can “compete with the best plays in America.” 

Rob Brundrett, the president of the Ohio Oil & Gas Association, also emphasized Ohio’s “holy trinity of hydrocarbons” when speaking at the Hart Energy DUG Appalachia conference: 

“We’ve got oil, natural gas, natural gas liquids and crude oil. So we have them all right here in the Utica and the state of Ohio.” 

Drilling Down on the Numbers 

Ohio’s oil production is centered in a five-county area that’s responsible for 95 percent of the state’s shale oil production, including Harrison, Columbiana, Guernsey, Carroll and Noble counties.  

Encino Energy had the top five producing oil wells this quarter, with Southwestern Energy, EOG Resources, and Ascent Resources filling out the remaining top ten producing wells. Hart Energy reports that Encino produced 51 percent of Ohio’s total production, followed by Ascent Energy and Infinity Natural Resources as the top producers.  

Speaking to the Youngstown Business Journal on the oil success, Encino spokesperson Jackie Stewart said:  

“The continuous significant quarter over quarter growth is undeniable. Encino remains optimistic about the Utica Shale, and we plan to add a fourth rig next month to continue capturing its success.” (emphasis added) 

Natural Gas Still a Success 

For its part, Q1 yielded 534,028,076 Mcf of natural gas, down just slightly from Q42023 with Antero Resources operating the top ten producing wells.  

Bottom Line: While some other domestic oil plays plateau, Ohio’s newfound Utica oil is seeing quarter after quarter growth, unlocking Ohio’s potential as a key natural gas and oil state.  

Source: energycentral.com