Ohio More Than Doubles Oil and Gas Production in 2013

New data shows that oil and gas production in Ohio doubled in 2013.

Jan 6, 2014 at 1:07PM

Ohio Oil

Photo credit: Flickr/Don O'Brien.

New data from the Ohio Department of Natural Resources shows that oil and gas production in the state has more than doubled as of the third quarter of 2013. The Utica Shale pumped out 1.3 million barrels of oil and 33.6 billion cubic feet of natural gas . In 2012, Ohio produced 635,876 barrels of oil and 12.8 billion cubic feet of natural gas.

One of the companies leading the way last year was Chesapeake Energy (NYSE:CHK). The nation's No. 2 natural gas producer saw output in the Utica Shale jump by 91% over the previous year. And its production could have been much higher. As of the end of September, Chesapeake Energy had drilled 377 wells, but 208 were either waiting on pipelines or were in various stages of completion . That suggests the Utica could see another burst of production in 2014.

The other company really fueling the rise of the Utica Shale is Gulfport Energy (NASDAQ:GPOR), which drilled the best oil well in Ohio last year. The Boy Scout well in Harrison County produced 41,617 barrels of oil in just its first 70 days of production. Gulfport Energy also produced the state's top gas well, as its Stutzman well in Belmont County produced 1.2 billion cubic feet of natural gas in just 89 days. That's more than enough gas to heat 10,000 homes for in excess of one year.

Production from the Utica Shale should continue to grow in 2014. Gulfport Energy has already increased its 2014 capital spending plan for this play to $614 million. That should enable the company to push its production there to an average of up to 54,000 barrels of oil equivalent per day.

In addition to heavyweights like Gulfport Energy and Chesapeake Energy, emerging players including Antero Resources (NYSE:AR) and Magnum Hunter Resources (NYSE:MHR) are making moves to grow production from this resource-rich shale.

Antero Resources went public in 2013 in order to have the capital to fuel its drilling plans. The company is already the third most active driller in the Utica Shale, and it sees a long runway of growth with more than 720 future wells. Overall, Antero believes it has the potential to produce more than 5.3 trillion cubic feet equivalent, with 19% of that production being oil or natural gas liquids. 

Magnum Hunter Resources, on the other hand, is just getting started in the Utica Shale. The company is completing its first few wells in the play. A lot of the company's acreage is adjacent to Antero Resources, suggesting that Magnum is situated in a prime spot in the play. Once investors start to see this potential being realized, it could really fuel the company's shares.

Ohio's Utica Shale has had its ups and downs. Production, however, is heading in the right direction and looks to be rising in the future.That should fuel a rise in the stock prices of Ohio's best-positioned drillers.

Here's how you profit from America's energy boom
The Utica Shale could fuel the next phase of growth in America's energy boom. However, there are still risks to investors like you that the Utica Shale won't pan out. That's why you need to invest in the companies with the best positions to profit from America's energy boom. For a list of our top three, check out the Motley Fool's special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 


Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers