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Ohio is a state in the Midwestern United States. Ohio is the 34th largest (by area), the 7th most populous, and the 10th most densely populated of the 50 United States. The state's capital and largest city is Columbus. Ohio is in the early stages of the development and exploration of the Utica-Point Pleasant deposits in Ohio with more than 1,000 wells drilled.[1] The hydraulic fracturing process enables energy companies to tap into shale deposits to extract oil, natural gas, natural gas liquids, and condensate.
The US Energy Information Administration estimated in 2012 that the Utica Shale in the US held 15.7 trillion cubic feet of unproved, technically recoverable gas. The average well was estimated to produce 1.13 billion cubic feet of gas.[2] The same year, the US Geological survey estimated that the Utica Shale had 38.2 trillion cubic feet of undiscovered technically recoverable gas, 940 million barrels of oil, and 208 million barrels of natural gas liquids.[3]
The petroleum industry in Ohio dates from 1859. Ohio continues to produce significant quantities of oil and gas, producing more than 1 billion barrels of oil and 9 trillion cubic feet of natural gas since 1860. Unconventional resources, primarily in eastern Ohio, are likely to increase production in Ohio.
In late 1859, blacksmith William Jeffrey drilled the first well in Ohio specifically intended to produce petroleum. This well is located in Mecca Township, Trumbull County, northeast of Warren. In 1860, similar activity occurred in Macksburg. Ohio was one of the original modern-energy states in the world starting in the 19th century and has a storied history. The first discovery of oil from a drilled well and first offshore oil rig occurred in Ohio in 1814 in Noble County, and 1891 at Grand Lake St. Marys.[4] Ohio was the country's lead producer of oil between 1895 and 1903, until technology allowed further developments throughout the nation.[5] Since that first well drilled in 1814 by Silas Thora and Robert McKee in Noble County, the state has drilled 273,000 wells, ranking it fourth nationally behind Texas, Oklahoma, and Pennsylvania historically.[6] At peak production, the state produced 24,000,000 barrels (3,800,000 m3) of oil in 1896. Oil development in this era also helped create the world's first billionaire, John D. Rockefeller, as a result. Standard Oil was first headquartered in Cleveland, beginning in 1870. The state has produced 1,120,000,000 barrels (178,000,000 m3) since 1860. Offshore oil drilling in Lake Erie first occurred in 1913, and the lake is home to oil reserves.
Natural gas was discovered in Clinton County in 1887. Ohio became a world leader in oil production in the late 19th and early 20th centuries. The Ohio oil and natural gas industries employ 14,400 citizens, resulting in $730 million in wages. The industries paid $202 million in royalties to landowners, and $84 million in free energy.[7] The state's oil and natural gas industry continues to grow, having topped the $1 billion mark in market value production for four consecutive years, including $1.35 billion in 2008. This has only been accomplished five times in state history.[8] [9] Ohio has the second largest oil refining capacity in the Midwest.[10] Toledo is home to facilities operated by PBF Energy and BP, totaling over 300,000 BPD capacity. The BP facility is undergoing a $400 million renovation and is expected to receive nearly exclusive supplies from a $2.5 billion oilsands project in Alberta by 2011.[11] Toledo is also a target destination for supplies coming from the Bakken Oil Fields.[12]
Oil production climbed year after year, especially after major oil and gas reserves were found in Wood County in northwest Ohio in the 1880s. From Toledo to Lima and into Indiana, the Bowling Green Fault fractured the Trenton Formation limestone, in which hydrocarbons were trapped by overlying rock. In 1891, the likely first overwater drilling operations in the world occurred in Grand Lake [13] where more than 100 wells were drilled in less than 10 years. Between 1895 and 1903, Ohio was the leading producer of crude oil in the country and thereafter was surpassed by Texas and Oklahoma. The Trenton limetone produced more than 380 million barrels of oil and 2 trillion cubic feet of gas, peaking in 1896 at 23.9 million barrels of oil.[14] Large scale production of oil continued into the 1930s. Due to inefficient early drilling techniques, the oil fields rapidly lost pressure.
During this period, many towns in Ohio experienced rapid boom-to-bust cycles. The usefulness of natural gas was not discovered until the 1880s. Up until then, it was considered a “nuisance.” Findlay was “the gas capital of Ohio in late 1885.”[15] For example, in Findlay, the first commercial natural gas well began producing in 1884. In 1886, the productive Karg Well (over 10,000,000 cubic feet/day) and other wells resulted in so much gas being flared that Findlay was known as the "City of Light" and free fuel and light attracted many industries, including glass.[16] By 1888, Findlay was one of the largest glass production centers. The gas was assumed to be "inexhaustible".[17] By 1890, gas output began to decline.[18]
In 1883, Ohio ranked fifth among oil-producing states, behind Pennsylvania, West Virginia, New York, and California; its total production of 47,000 barrels of oil that year was less than one percent of the nation's oil output. But Ohio production climbed rapidly, and in 1895 Ohio became America's leading oil-producing state. Ohio oil production peaked in 1896 at 24 million barrels, but Ohio continued as the leading oil state until 1902, when that title was taken by Oklahoma.[19]
In northwest Ohio, the production of oil was relatively new. The lack of knowledge about the field of industry led to poor management. In turn, it led to much waste during production, resulting in the end of the period's “oil boom.”[15] Although production significantly dropped with reservoir pressure, oil and gas production continued in Ohio. More than 220,000 wells have been drilled in 67 of Ohio's 88 counties, with 60,000 operating as of 2000. These wells have produced more than 1 billion barrels of oil and 9 trillion cubic feet of natural gas. Much of the gas production has occurred in the sandstone formations of eastern Ohio.
In 1951, the process of hydraulic fracturing was introduced in Ohio to extract oil and gas.[20] Part of the Devonian Shale is the Marcellus Shale, which alone is estimated to hold between 168 trillion and 516 trillion cubic feet of natural gas.[21] Recent technological advances have made the recovery of these reserves possible, and the state has experienced a boom in drilling.[22] It is estimated that 423 billion barrels (67.3×10^9 m3) of oil are present in the Devonian-Mississippi Shale, with 98% of the near-surface mineable resources located in Ohio, Kentucky, Indiana, and Tennessee.[23]
By March 2010, The Intelligencer, based in neighboring Wheeling, West Virginia, had declared that a "gas rush" was occurring with the Marcellus Shale in the area and that property was "hot".[24] May saw the $4.7 billion acquisition by Royal Dutch Shell of East Resources's drilling property in neighboring states.[25]Intense leasing activity was reported in eastern Ohio in September,[26] including Gastar Exploration and South Korea-based Atinum Partners citing Ohio acreage in a $70 million deal.[27] Pennsylvania-based CONSOL Energy began drilling Belmont County,[28] while Anschutz Exploration Corporation announced that month it had sold 500,000 acres (2,000 km2) of its oil and natural gas fields, including in Ohio, for $3 billion.[29][30]By October, National Geographic had officially coined the boom as the "Great Shale Gas Rush",[31] with 70 energy companies prospecting New York, Pennsylvania, West Virginia, and Ohio with plans to drill 3,500 well a year over the next decade with the potential of 200,000 new employment positions.[32]In August 2011, Chesapeake Energy announced it would open a field office in Canton.[33] In September 2011, Hess Corporation announced a $750 million play in the state's Utica Shale.[34]
V&M Star Steel, a subsidiary of France-based Vallourec, announced plans to construct a $650 million plant in Youngstown in February 2010 because of the drilling boom, expanding existing operations in the state, which broke ground in June of that year.[35][36] Later in February, Russia-based TMK IPSCO opened a production facility in Brookfield through a subsidiary, Ultra Premium Oilfield Services, with the Marcellus Shale exploration boom cited as the reason.[37] By June 2010, TMK IPSCO had cited skyrocketing sales commensurate with the "boom".[38] In July 2010, the U.S. Department of Labor announced a $5 million grant to train workers for Marcellus shale drilling, including laborers in Ohio.[39] In August of that year, Kinder Morgan announced plans to construct a 230-240 mile-long underground pipeline, which would transport recovered natural gas supplies in Western Pennsylvania from West Virginia to Toledo, ultimately connecting with existing pipelines in Michigan and Southern Ontario.[40][41] In September, Warren's water treatment facility announced plans to become the first in the state to accept waste water from shale drilling, while at the 2010 Marcellus Summit in State College, Pennsylvania, state officials announced they were working with local officials on bonding issues for new infrastructure.[42] Laurel Mountain Midstream announced in October plans to expand its pipeline collection system covering wells in Ohio,[43] and later that month Texas-based El Paso Midstream Group and Spectra Energy signed a memorandum of understanding to construct their Marcellus Ethane Pipeline System to connect existing Ohio and Pennsylvania pipelines with Gulf Coast destinations.[44] Later that month U.S. Steel announced their Lorain facility would begin work to meet the demands of drilling activities.[45]
Main Article: [Utica Shale]
Utica Shale drilling and production began in Ohio in 2011. Ohio as of 2013 is becoming a major natural gas and oil producer from the Utica Shale in the eastern part of the state.[46][47] Map of Ohio Utica Shale drilling permits and activity by date.[48][49] In 2011 drilling and permits for drilling in the Utica Shale in Ohio have reached record highs [50] Although the prospective Utica area extends into Pennsylvania and West Virginia, as of 2013, most activity has been in Ohio, because the Ohio portion is believed to be richer in oil, condensate, and natural gas liquids.
See Main Article: Ohio Environmental Protection Agency
The Ohio Environmental Protection Agency (Ohio EPA) is the administrative department of the Ohio state government responsible for protecting the environment and public health by ensuring compliance with environmental laws. Those laws and related rules outline Ohio EPA's authority and what things the Agency can consider when making decisions about regulated activities. Ohio EPA was created on Oct. 23, 1972. It combined environmental programs that previously had been scattered throughout several state departments. The director of Ohio EPA is appointed by the governor and serves as a cabinet member. Ohio EPA establishes and enforces standards for air, water, waste management and cleanup of sites contaminated with hazardous substances. The Agency also provides financial assistance to businesses and communities; environmental education programs for businesses and the public; and pollution prevention assistance to help businesses minimize their waste at the source.
Ohio EPA has several regulatory divisions that play different roles in environmental protection. Each division issues permits to regulate industries that pollute in a specific area, like air emissions or wastewater discharges to rivers and streams. The permits include requirements for operating, monitoring and reporting compliance. There are a few core responsibilities that each regulatory division of Ohio EPA fulfills:
Ohio EPA’s Central Office is located in Columbus. Five district offices manage the Agency's programs at the local level. They are located in Bowling Green, Twinsburg, Dayton, Columbus and Logan.
The first feature that strikes an observer is the great supply of gas, as evidenced by its tremendous pressure. It comes not with a flow as ordinarily understood, but in force like a mighty rushing wind. The gas from the great Karg well leaps and roars from its mouth night and day—a semi-volcanic pyramid of flame. The company has so far been unable to utilize the flow from this well, and, therefore, as a matter of safety allow the millions of feet of escaping gas to burn from an iron pipe extending from the mouth of the well to the bank of the river. Thousands of visitors have been attracted to Findlay during the past year to view her wonderful gas wells[. Quoting from a Toledo newspaper:] 'Five or six miles before reaching Findlay a brilliant light is seen in the heavens, and a mile or two further on discloses to the vision a great cloud of fire. This was the great Karg well.'
It will thus be seen that Findlay possesses what now appears to be an inexhaustible supply of natural gas. *** Scientific and unscientific opinion appears to be about settled down to the belief that the supply of natural gas is produced by continual generation, and though wells may give out, and local supplies may fail here and there, like the great natural product of spring water, it will keep flowing from the earth forever.