Top 12 Utica Investments For 2012
In 2012, Utica Shale development brought Ohio significant investments from companies looking to make our state its home. With the year winding down, it seemed fitting to recap some of the bigger announcements that happened over the past year. Giving a look to what we’ve seen here in the past 12 months, we can expect 2013 to bring even more exciting news for eastern Ohio.
V&M Star Produces First Tubular Pipe For Shale Development
Steel has seen a resurgence in Ohio thanks to shale development. US Steel, Timken and V&M Star all have been seeing an increase in business thank to shale development. In November, V&M Star announced they produced their first tubular steel pipes to be used in oil and gas development. The state-of-the-art mill cost $350 million and will create new 350 jobs. The new mill will have initial production capacity of 350,000 tons of seamless pipe per year.
MarkWest Investing $500 Million in Harrison and Noble Counties
In the spring of last year, MarkWest energy announced plans to build two processing plants in Ohio to process the liquids rich gas coming from the Utica Shale development. MarkWest decided to make their base of operations in Cadiz, Ohio located in Harrison County. Their second plant will be built in Noble County
BP Buys $330 Million in Leases in Trumbull County to Develop Utica Shale
Late spring BP purchased leasing rights to 84,000 acres in Trumbull County this following a leasing deal with the Associated Landowners of the Ohio Valley (ALOV). Thanks to this agreement, BP has now purchased office and warehouse space in the Youngstown Commerce Park and plans to develop their first well in April 2013.
Gulfport Develops Not One But Three of the Top Producing Wells in the State
Announcement of Gulfport Energy’s Wagner Well sent encouraging new across the oilfield not only in Ohio but across the United States. With production results exceeding the previous top well in the state, the Buell Well, many wondered if Gulfport could repeat their success. Gulfport did not once but twice with the Shugert 1-1H and Shugert 1-12H, besting the Wagner Well. Thanks to these exciting results, Gulfport just recently announced that it acquired approximately 37,000 acres for around $372 million.
Halliburton Breaks Ground In Muskingum County
Halliburton broke ground at the Eastpointe Business Park in April. The new facility, when finished, will host a 135,000 square foot facility that will provide over 300 jobs to Ohio residents. The 178 acre facility will house a full-service center supporting eight or more of Halliburton’s business lines that will be used in the ongoing development of the Utica Shale. The site is expected to be completed by early 2013 and Halliburton has already hired over 100 Ohio residents since April.
Compressed Natural Gas Creating Significant Savings Across Ohio
With the tremendous savings created by the exploration of shale in both Ohio and Pennsylvania, companies in Ohio have now made the switch to CNG to run their fleets and busses. Thanks to inexpensive clean burning fuel bus systems like COTA in Columbus, Smith Dairy in Orrville and the City of Hamilton have all switched to CNG to power their fleets.
NiSource and Hilcorp to Spend up to $1.5 Billion in Processing Network
The partnership is planning to build a pipeline infrastructure from Columbiana through Mahoning County. In addition to the infrastructure, they pan to build cryogenic natural gas liquids processing plant handling up to 200 million cubic feet of natural gas per day.
Jefferson County Attracting Business and Attention in the Utica
2012 was a busy year for Jefferson County. There was a Congressional Hearing on Hydraulic Fracturing held at Eastern Gateway Community College. Governor Kasich held his 2012 State of the State Address at the Wells Academy in Steubenville. During that time Jefferson County also added over 11 new companies associated with shale development have now made Jefferson County their home including a major shale developer. These 11 companies are providing or are projected to provide over 500 jobs in the county.
Business Parks Across Ohio Filling Up Thanks to Utica Shale Development
Business Parks in Eastern Ohio are running out of space thanks to companies moving in to make Ohio their home. Business parks in Jefferson, Columbiana, Stark, Mahoning and Muskingum Counties have all seen new businesses moving into their facilities thanks to Utica Shale development.
Chesapeake Spends Over $3 Billion in the Utica Shale
Since the beginning of Utica Shale development, there has only been one true leader. That leader has been Chesapeake Energy, the first company to invest and develop a well in the Utica. Since then the company has invested $3.3 billion in Ohio providing energy, revenue and jobs for the state. The company is now building their Ohio headquarters in Louisville and employs 550 fulltime staff.
Hess Invests Over A $1 Billion to Develop Utica Shale
Over the past year, Hess has opened a field office in Jefferson County in preparation for their development of the Utica Shale. During that time Hess has acquired Marquette Exploration for $770 million and invested $500 million on a joint venture with Consol Energy to develop resources in the liquids rich portion of the Utica play.
M3 Midstream Investing $900 Million In Processing Plants in Columbiana and Harrison Counties
M3 Midstream is in the process of building natural gas gathering and compressing facilities at Kensington, plus processing, natural gas liquids fractionation, loading and terminal facilities at Scio in Harrison County. These two facilities will remove natural gas liquids by using a state of the art cryogenic processing facility. The project is slated for completion by the second quarter of next year.
In a year’s time, Ohio has doubled its rig count from 12 to 24, and had billions of dollars invested in developing our resources, providing affordable reliable natural gas as well as creating numerous jobs for Ohio residents. These investments have now put eastern Ohio back on the map as an economic powerhouse. As we look forward to 2013, it is good to know that Utica Shale development will be paramount to lifting Ohio back from stagnation to promise.