Ohio was one of the few truly bright spots, though. Ohio’s production went up from 1,015 BCF in 2015 to 1,465 in 2016. While producers across the country struggled with low prices, Ohio producers had some tailwinds. First, there has been a number of new pipelines either approved or beginning construction in the Marcellus and Utica regions, and that has increased expected demand for the area. The Rover Gas Pipeline will draw more gas to a hub near Defiance, Ohio, for example. A number of Ohio’s wells also were also far more productive than expected.
Pennsylvania was another one of the states that gained significant production in 2016, and it was also a beneficiary of improving infrastructure. The Atlantic Sunrise Pipeline will soon draw natural gas away from the region to the southeast and the Northern Access 2016 pipeline will pull more gas towards the northeast. Pennsylvania’s production went from 4,812 BCF to 5,263 BCF in 2016. The Department of Energy also approved a new liquefied natural gas export project on April 25, and it is possible an acceleration of export projects could boost gas demand further.
West Virginia grew ever so slightly, from 1,318 to 1,375 BCF. It could not keep pace, though, so Ohio leapfrogged West Virginia to become the sixth-highest producing state. Industry leaders have a positive outlook for 2017 production gains in Ohio, Pennsylvania, and West Virginia. Our team at Cimmaron Land has several years of experience providing land services to energy companies in these three states and we are available to help with any producer’s expansion plans.