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Spring 2017 Internship Applications for FracTracker Now Being Accepted

Title: FracTracker Alliance GIS Intern
Internship Period: January 2017 – June 2017, 6 months
Application Deadline: September 30, 2016
Compensation: $11/hour, 15 hours per week
Locations: Oakland, CA; Cleveland, OH; and Pittsburgh, PA

Are you a current or recent college graduate? Do you enjoy working with datasets, visualizations, maps, and researching oil and gas issues? If so, please consider applying for one of three paid GIS internships being offered this spring with FracTracker Alliance in Oakland, CA; Cleveland, OH; and Pittsburgh, PA.

Nature of Work

FracTracker internships are dedicated to current college and graduate students, as well as recent grads. Each 6-month internship runs from January through June 2017. Paid, temporary interns work 15 hours per week and are compensated $11/hour. This position is not eligible for health benefits, but travel expenses may be reimbursed. Please note this position is at will and subject to available funding.

Interns will work out of one of the three following FracTracker offices (selected during the application process), although some remote work is permissible if arranged in advance with their supervisor:

  • California: 1440 Broadway, Ste. 205, Oakland, CA 94612
  • Ohio: 2460 Fairmount Blvd, Ste. 204, Cleveland Heights, OH 44106
  • Pennsylvania: 4600 Penn Ave, Fl. 1, Pittsburgh, PA 15224

Interns will utilize GIS technologies to perform geo-spatial data collection, processing and analysis. Tasks are typically associated with routine technical work in GIS involving heavy amounts of database entry and management, generation of maps, and various types of research under the supervision of FracTracker staff.

Responsibilities

The responsibilities of paid GIS interns revolve around the daily work of the other FracTracker staff, as well as time-sensitive projects. Responsibilities will vary, but may include:

  • Data mining, cleaning, management, and GIS mapping
  • Limited spatial analyses using GIS software
  • Translation of data into information and stories for the blog
  • Administrative support when needed (including data entry, schedule coordination, taking and preparing meeting notes, etc.)
  • Field research
  • Participation in software development, integration, and system testing when needed

Qualifications

Working knowledge of: Geographic information systems (GIS) and Microsoft Office products (especially Word and Excel)

Ability to: Assist with researching spatial data availability from internal and external sources; collect, assimilate, analyze, and interpret data and draw sound conclusions; prepare oral and written reports.

Enrollment in or recent graduation from an accredited college or university is required. Majors can include geography, computer science, environmental science, public health, planning or a related field.

Spring 2017 Internship Application Process

To apply, please submit the following materials by September 30, 2016 through our online application form (application is officially closed, link removed): cover letter, resume, and 3 references. Applications are not accepted via email, but you may address questions to Sam Rubright at malone@fractracker.org.

After September 30, 2016, applicants will be contacted regardless of whether or not an interview is sought. Interviews will be conducted during the week of October 3, 2016, and a decision made by Friday, October 14, 2016.

About FracTracker Alliance

FracTracker Alliance studies, maps, and communicates the risks of oil and gas development to protect our planet and support the renewable energy transformation. Learn more about FracTracker Alliance at fractracker.org.

Koontz Class II Injection Well, Trumbull County, Ohio, (41.22806065, -80.87669281) with 260,278 barrels (10,020,704 gallons) of fracking waste having been processed between Q3-2010 and Q3-2012 (Note: Q1-2016 volumes have yet to be reported!).

OH Class II Injection Wells – Waste Disposal Trends and Images From Around Ohio

By Ted Auch, PhD – Great Lakes Program Coordinator

Hydraulic Fracturing "Fracking" at a well-pad outside Barnesville, Ohio operated by Halliburton

Hydraulic Fracturing “Fracking” at a well-pad outside Barnesville, Ohio operated by Halliburton

The industrial practice of disposing of oil and gas drilling waste into Class II injection wells causes a lot of strife for people on both sides of the fracking debate. This process has exposed many “hidden [geologic] faults” across the US as a result of induced seismicity. It has been linked in recent months and years with increases in earthquake activity in states like Arkansas, Kansas, Texas, and Ohio.

Locally, there is growing evidence in counties – from Ashtabula to Washington – that Ohio Class II injection well volumes and quarterly rates of change are related to upticks in seismic activity (Figs. 1-3). But exactly how much waste are these sites receiving, and where is it coming from? Since it has been a little over a year since last we looked at the injection well landscape here in Ohio, we decided to revisit the issue here.

Figures 1-3. Ohio Class II Injection Well disposal during Q3-2010, Q2-2012, and Q2-2015

The Class II Landscape in Ohio

In Ohio 245+ Class II Salt Water Disposal (SWD) Disposal Wells are permitted to accept unconventional oil and gas waste. Their disposal capacity and number of wells served is by far the most of any state across the Marcellus and Utica Shale plays.

Ohio’s Class II Injection wells have accepted an average of 22,750 barrels per quarter per well (BPQPW) (662,632 gallons) of oil and gas wastewater over the last year. In comparison, our last analysis uncovered a higher quarterly average (29,571 BPQPW) between the initiation of frack waste injection in 2010 and Q2-2015 (Fig. 4). This shift is likely due to the significant decrease in overall drilling activity from 2012 to 2015. Between Q3-2010 and Q1-2016, however, OH’s Class II injection wells saw an exponential increase in injection activity.  In total, 109.4 million barrels (3.8-4.6 billion gallons) of waste was disposed in Ohio. From a financial perspective this waste has generated $3.4 million in revenue for the state or 00.014% of the average state budget (Note: 2.5% of ODNR’s annual budget).

The more important point is that even in slow times (i.e., Q2-2015 to the present) the trend continues to migrate from the bottom-left to the top-right, with each of Ohio’s Class II injection wells seeing quarterly demand increases of 972 BPQPW (34,017-40,821 gallons). This means that the total volume coming into our Class II Wells is increasing at a rate of 8.2-9.8 MGs per year, or the equivalent to the water demand of several high volume hydraulically fractured wells.

With respect to the source of this waste, the story isn’t as clear as we had once thought. Slightly more than half the waste came from out-of-state during the first two years for which we have data, but this statistic plummeted to as low as 32% in the last year-to-date (Fig. 5). This change is likely do to the high levels of brine being produced in Ohio as the industry migrates towards the perimeter of the Utica Shale.

Figures 4 and 5

Freshwater Demand and Brine Production

Map of Ohio Utica Brine Production and Class II Injection Well Disposal

View map fullscreen | How FracTracker maps work | Download map data | Related OH Shale Gas Viewer

Ohio Class II injection well disposal and freshwater demand

Figure 6. Ohio Class II Injection Well disposal as a function of freshwater demand by the shale industry in Ohio between Q3-2010 and Q1-2015

To gain a more comprehensive understanding of what’s going on with Class II wastewater disposal in Ohio, it’s important to look into the relationship between brine and freshwater demand by the hydraulic fracturing industry. The average freshwater demand during the fracking process, accounts for 87% of the trend in brine disposal in Ohio (Fig. 6).

As we mentioned, demand for freshwater is growing to the tune of 405-410,000 gallons PQPW in Ohio, which means brine production is growing by roughly 12,000 gallons PQPW. This says nothing for the 450,000 gallons of freshwater PQPW increase in West Virginia and their likely demand for injection sites that can accommodate their 13,500 gallons PQPW increase.

Conclusion

Essentially, the seismic center of Ohio has migrated eastward in recent years; originally it was focused on Western counties like Shelby, Logan, Auglaize, Darke, and Miami on the Indiana border, but it has recently moved to injection well hotbed counties like Ashtabula, Trumbull, and Washington along the Pennsylvania and West Virginia borders. This growth in “induced seismicity” resulting from the uptick in frack waste disposal puts Ohio in the company of Oklahoma, Arkansas, Colorado, Kansas, New Mexico, and Texas. Each of those states have reported ≥4.0 magnitude “man-made” quakes since 2008. Between 1973 and 2008 an average of 21 earthquakes of ≥M3 were reported in the Central/Eastern US. This number jumped to 99 between 2009 and 2013, with 659 of M3+ in 2014 alone according to the USGS and Virginia Tech Seismological Observatory (VTSO). This “hockey stick moment” is exemplified in the below figure from a recent USGS publication (Fig. 7). Figure 8 illustrates the spatial relationship between recent seismic activity and Class II Injection well volumes here in Ohio. The USGS even went so far as to declare the following:

An unprecedented increase in earthquakes in the U.S. mid-continent began in 2009. Many of these earthquakes have been documented as induced by wastewater injection…We find that the entire increase in earthquake rate is associated with fluid injection wells. High-rate injection wells (>300,000 barrels per month) are much more likely to be associated with earthquakes than lower-rate wells.
– From USGS Report High-rate injection is associated with the increase in U.S. mid-continent seismicity

Figures 7 and 8

The sentiment here in Ohio regarding Class II Injection wells is best summed up by Dr. Ray Beiersdorfer, Distinguished Professor of Geology, Youngstown State University and his wife geologist Susie Beiersdorfer who jointly submitted the following quote regarding the North Star (SWIW #10) Class II Injection Well in Mahoning County, which processed 555,030 barrels (21,368,655 gallons) of fracking waste between Q4-2010 and Q4-2011[1].

The operator, D&L, and the ODNR denied the correlation in space and time between the injection of toxic fracking fluids into the well and earthquakes for over eight months in 2011. The well was shut down on December 30 and the largest seismic event, a 4.0 happened at 3:04 p.m. on December 31, 2011. Though the rules say that a “shut-in” well must be plugged after 60 days, this well is still “open” after 1656 days (July 12, 2016). This well must be plugged [and abandoned] to prevent further risks to the health and safety of the Youngstown community… According to Rick Simmers, the only thing holding this up is bankruptcy procedures. It was drilled into a fault, triggered over five hundred earthquakes, including a Magnitude 4.0 that caused damage to homes. [It is likely] that any other use of this well would trigger additional hazardous earthquakes.

Images From Across Ohio

Click on the images below to explore visual documentation and volumes disposed (as of Q1-2016) into Class II Injection wells in Ohio.

Footnote

  1. This is the infamous Lupo well which was linked to 109 tremors in Youngstown by researchers at the Lamont-Doherty Earth Observatory at Columbia University back in the Summer of 2013. The owner of the well Ben W. Lupo was subsequently charged with violating the Clean water Act.

Staff Spotlight: Ted Auch

As part of FracTracker’s staff spotlight series, learn more about Ted Auch, PhD and why he started researching the impacts of oil and gas development.

Ted Auch during a trip to NW Michigan's Ludington State Park to photograph and learn more about Sargent Sand's mine

Ted Auch during a trip to NW Michigan’s Ludington State Park to photograph and learn more about Sargent Sand’s mine

Time with FracTracker: 3 ½ years

College: University of Vermont BS and PhD, Virginia Tech

Office Location: Cleveland Heights, OH

Title: Great Lakes Program Coordinator

What do you actually do in that role?

My interests include topics such as environmental justice, ecosystem services, watershed resilience, and landscape alteration(s). My work here at FracTracker focuses on the Food, Energy, and Water (FEW) nexus as it relates to hydraulic fracturing and related oil & gas activities/infrastructure with a focus on waste, watershed resilience and freshwater demand, and land-use change.

Previous Position and Organization

2011-2012 Vacant Land Repurposing (VLR) Postdoc, Cleveland Botanical Garden

2012- Present Adjunct Faculty, Cleveland State University, Teaching Intro Environmental Science and Geology, Soil Ecology

How did you first get involved working on oil and gas issues/fracking?

I had experienced the environmental and socioeconomic costs of fossil fuel extraction while I was a graduate student at Virginia Tech researching strip-mine/mountain top removal reclamation best practices as part of the Jim Burger’s Powell River Project. However, it wasn’t until I moved to Ohio in 2011 that I began to become aware of similar issues associated with high-volume hydraulic fracturing (HVHF). I began to notice that there are many parallels between the techniques and how they alter communities, the landscape, and watersheds. Thus, when I found out about the chance to join the FracTracker team here in Ohio I saw that it was an opportunity I could not pass up.

What is one of the most impactful projects that you have been involved in with FracTracker?

The projects I am most proud in my capacity here at FracTracker would be our research into the effects of HVHF freshwater demand on the resilience/security of the Muskingum River Watershed in eastern Ohio and our work shedding light on the effects of frac sand mining across several Midwestern states. The latter topic is poorly understood on many levels, and we hope that our work has/will highlight the gaps in understanding and potential research opportunities.

Read Ted Auch’s Articles

Ted Auch and team during a trip to NW Michigan's Ludington State Park to photograph and learn more about Sargent Sand's mine

Ted Auch and team during a trip to NW Michigan’s Ludington State Park to photograph and learn more about Sargent Sand’s mine

Drilling rig in Ohio, December 2015

Ohio Shale Country Listening Project Part 1

Listening Project Partners: CURE, OOC, & FracTracker

The below industry quote divides the world into two camps when it comes to horizontal hydraulic fracturing: those who are for it and those who are against it:

Fracking has emerged as a contentious issue in many communities, and it is important to note that there are only two sides in the debate: those who want our oil and natural resources developed in a safe and responsible way; and those who don’t want our oil and natural gas resources developed at all.
– Energy from Shale (an industry-supported public relations website)

The writer imagines a world in black and white – with a clear demarcation line. In reality, it is not so simple, at least not when talking to the people who actually live in the Ohio towns where fracking is happening. They want the jobs that industry promises, but they worry about the rising costs of housing, food, and fuel that accompany a boomtown economy. They want energy independence, but worry about water contamination. They welcome the opening of new businesses, but lament the constant rumble of semi-trucks down their country roads. They are eager for economic progress, but do not understand why the industry will not hire more locals to do the work.

In short, the situation is complicated and it calls for a comprehensive response from Ohio’s local and state policy makers.

Through hefty campaign contributions and donations to higher learning institutions, the oil and gas industry exerts undue influence on Ohio’s politics and academic institutions. Many media outlets covering the drilling boom also have ties to the industry. Therefore, industry has been able to control the message and the medium. Those who oppose oil and gas in any way are painted as radicals. Indeed, some of Ohio’s most dedicated anti-fracking activists are unwavering in their approach. But most of the people living atop the Utica Shale simply want to live peacefully. Many would be willing to co-exist with the industry if their needs, concerns, and voices were heard.

This project attempts to give these Ohioans a voice and outsiders a more accurate representation about life in the Utica Shale Basin. The report does not engage in the debate about whether or not fracking should occur – but, rather, examines the situation as we currently find it.

Listening Project Summary

The Ohio Shale Country Listening Project is a collaborative effort to solicit, summarize, and share the perspectives and observations of those directly experiencing the shale gas boom in eastern Ohio. The project is led by the Ohio Organizing Collaborative (OOC)’s Communities United for Responsible Energy (CURE), with support from the Ohio Environmental Council (OEC), FracTracker Alliance, and the Laborers Local 809 of Steubenville. Policy Matters Ohio and Fair Shake Environmental Legal Services offered resources and time in drafting the final policy recommendations.

Over the course of six months, organizers from the Laborers Local 809 and OOC worked with a team of nearly 40 volunteers to survey 773 people living in the heart of Utica Shale country. Respondents are from eastern Ohio, ranging from as far north as Portage County to as far south as Monroe County. A small number of respondents hail from across the border in West Virginia and Pennsylvania, but the overwhelming majority are from Carroll (321), Columbiana (230), Jefferson (70), Harrison (30) and Belmont (28) counties.

Respondents were asked to talk about their family and personal history in the community where they live, their favorite things about their community and what changes they have noticed since the arrival of shale gas drilling using horizontal hydraulic fracturing or fracking. They were also asked to describe their feelings about oil and gas development as either positive or negative and what they believed their community would be like once the boom ends. Finally, respondents were also asked how concerned or excited they are about 11 possible outcomes or consequences of fracking.

Summary of Recommendations

  • Create incentives for companies to hire local workers; and increase transparency about who drilling and subcontracting companies are employing
  • Tax the oil and gas industry fairly with a severance tax rate of at least 5%; use this revenue to support affected communities to mitigate the effects of the boom and bust cycle
  • Increase the citizen participation in county decision-making on how additional sales tax or severance tax revenue is spent and how the county deals with the effects of the drilling boom
  • Increase transparency around production and royalties for landowners and the public
  • Set aside funding at the local level for air and water monitoring programs
  • Mitigate noise and emissions as much as possible with mandatory sound barriers and green completion on all fracking wells
  • Create mechanisms to protect sensitive areas from industry activity
  • Levy municipal impact fees to address issues associated with drilling
  • Better protect landowners during leasing negotiation process and from potential loss of income due to property damage

Conclusion

The more shale gas wells a community has, the less popular the oil and gas industry appears to be. Carroll County is the most heavily drilled county in Ohio, and more than half the respondents said they view the drilling boom negatively. Moreover, many residents say they are not experiencing the economic benefits promised by the oil and gas industry. They see rent, cost of gas, and groceries rising as the drilling and pipeline companies hire workers from out of state and sometimes even out of the country. Residents see more sales tax revenue coming into their counties but also see their roads destroyed by large trucks. They say they are experiencing more traffic delays and accidents than ever before. Ohioans love their community’s pastoral nature but are watching as the landscape and cropland get destroyed. As it is playing out now, the boom in shale gas drilling is not fulfilling the promises made by industry. Locals feel less secure and more financially strapped. Many feel their towns will soon be uninhabitable. It is up to state and local governments to hold industry accountable and make it pay for the impacts it creates.

Infrastructure associated with horizontal hydraulic fracturing. Images from Ted Auch and FracTracker’s Oil & Gas Photos Archive:

Inception & Evolution of the Listening Project

The Ohio Shale Country Listening Project started in February 2014 with a conversation between Ohio Organizing Collaborative (OOC) staff and a veteran organizer who once worked on mountain top removal in a large region of West Virginia. The OOC organizer lamented the difficulty of organizing across a large geography around a specific issue – in this case, fracking. How do you find out what the people want without dictating to the community? The more experienced organizer immediately responded: What about a listening project? She connected OOC to the Shalefield Organizing Project in Pennsylvania whose organizers helped OOC think through what a listening project might look like in Ohio.

The project took on several iterations. First, OOC planned to focus the listening project solely on Columbiana County, which at the time was the third most fracked county in Ohio. Next, community leaders in Carroll County, the most heavily drilled county in the state, suggested the project also focus there. Eventually, as it became clear that the shale play was moving further south in Ohio, the project expanded into other counties such as Belmont, Harrison, and Jefferson. While attending a public hearing on pipeline construction in Portage County, OOC staff met an organizer from the Laborers Local 809 out of Steubenville. The organizer expressed interest in joining the project. Meanwhile, OOC had been in discussions with the Ohio Environmental Coalition (OEC) about the need to share the stories of people living in the middle of a fracking boom. OEC agreed to join the project. Finally, FracTracker also came into the fold, eager to assist in analyzing and mapping data gathered during the effort.

ListeningProject_Volunteer

A listening project volunteer surveys a shopper at Rogers Open Air Market

OOC staff solicited the help from about 40 volunteers to form the “Listening Project Team” who surveyed their friends, family, coworkers, and neighbors. Volunteers met four times over the course of six months to discuss the project and strategize about how to reach more people with the survey. Most of the volunteer team came from Columbiana and Carroll Counties. The Laborers Local 809 also distributed the surveys to their members. Members of the team canvassed neighborhoods, attended local festivals, set up a booth at Rogers Open Air Market (photo left) and distributed an online version of the survey through Facebook and email. OOC staff spoke at college classes at Kent State-Salem and Kent State-East Liverpool, and solicited input from students in attendance.

Listening project respondents by location

The project’s initial goal was to hit a target of 1,000 – 1,500 survey responses. In the end the team fell short of this number, but were able to reach 773 people living in the Utica Shale area. This barrier is mostly due to the rural nature of the communities surveyed, which makes it more difficult to reach a large number of people in a short timeframe. The most responses came from Carroll County – 321 surveys. Columbiana County represented the second largest group of respondents with 230 surveys. Seventy people from Jefferson County, 30 people from Harrison County, 28 from Belmont County filled out the survey. The final 80 responses came from Mahoning, Stark, Summit and Tuscarawas Counties. Finally, nearly fifty responses came from Pennsylvania and West Virginia residents who live along the Ohio border (see Figure right). We promised survey respondents that all names and information would be kept confidential with survey responses presented only in aggregate.

FracTracker is Seeking Paid Spring Interns

Update: The online application process has ended. Candidates who submitted applications will hear from us by January 22, 2016.

Are you a current or recent college grad, and do you enjoy working with datasets, visualizations, maps, or even writing about oil and gas issues? If so, please consider applying for one of FracTracker’s paid internships this spring. These internships run from February 15 through August 15, 2016. This year we are seeking paid spring interns for the following offices: Cleveland, OH; Pittsburgh, PA; and Washington, DC. See where we work.

Deadline to apply: January 18, 2016 at 5:00pm eastern.

Why Join Us

Internships at the FracTracker Alliance offer students invaluable resume-building work experience and networking opportunities. Not only will you work closely with members of our team, but you will also have the opportunity to learn about and contribute to many aspects of our oil and gas work. Interns will also have the opportunity to participate in events that increase their professional networks and interact with our partner organizations. Meet our current interns.

Responsibilities

The responsibilities of paid interns revolve around the daily work of the other FracTracker staff as well as time-sensitive projects. Due to FracTracker’s web and mapping focus, the primary skills we seek out of internship applicants are those that would allow them to do GIS mapping, communications projects, or a combination of the two.

Interns will work 15 hours per week for ~26 weeks and will be compensated $11/hour. This position is not eligible for health benefits.

Update: The online application process has ended. Candidates who submitted applications will hear from us by January 22, 2016.

Additional Oil & Gas Photos on FracTracker

One of the many services that FracTracker offers is access to oil and gas photos. These have been contributed to our website by partners & FracTracker staff and can be used free of charge for non-commercial purposes. Please site the photographer if one is listed, however.

Over the last few months we have added additional oil and gas photos to the following location-based albums – and more photos and videos are coming soon! Click on the links below to explore:

Germany  |  Netherlands  |  Ohio  |  Pennsylvania  |  West Virginia

If you would like to contribute photos or videos to this collection, please email us the files along with information on how to credit the photographer to: info@fractracker.org.

 

The Curious Case of the Shrinking Utica Shale Play

Oil, Gas, and Brine Oh My!
By Ted Auch, Great Lakes Program Coordinator, FracTracker Alliance

It was just three years ago that the Ohio Geological Survey (OGS) and Department of Natural Resources (DNR) were proposing – and expanding – their bullish stance on the potential Utica Shale oil and gas production “play.” Back in April 2012 both agencies continue[d] to redraw their best guess, although as the Ohio Geological Survey’s Chief Larry Wickstrom cautioned, “It doesn’t mean anywhere you go in the core area that you will have a really successful well.”

What we found is that the OGS projections have not held up to their substantial claims. And here is why…

Background

The Geological Survey eventually parsed the Utica play into pieces:

  • a large oil component encompassing much of the central part of the state,
  • natural gas liquids from Ashtabula on the Pennsylvania border southwest to Muskingum, Guernsey, and Noble Counties, and
  • natural gas counties, primarily, along the Ohio River from Columbiana on the Pennsylvania-West Virginia border to Washington County in the Southeast quarter of the state.
Columbus Dispatch Utica Shale "play" map

Columbus Dispatch Utica Shale “play” map

Fast forward to the first quarter of 2015 and we have a very healthy dataset to begin to model and validate/refute these projections. Back in 2009 Wickstrom & Co. only had 53 Utica Shale laterals, while today Ohio is host to 962 laterals from which to draw our conclusions. The preponderance of producing wells are operated by Chesapeake (463), Gulfport (118), Antero Resources (62), Eclipse Resources (41), American Energy Utica (36), Consol (35), and R.E. Gas Development (34), with an additional 13 LLCs and 10 publicly traded companies accounting for the remaining 173 producing laterals. A further difference between the following analysis and the OGS one is that we looked at total production and how much oil and gas was produced on a per-day basis.

Analysis

Using an interpolative geostatistical technique known as Empirical Bayesian Kriging and the 962 lateral dataset, we modeled total and per day oil, gas, and brine production for Ohio’s Utica Shale between 2011 and Q1-2015 to determine if the aforementioned map redrawing holds up, is out-of-date, and/or is overly optimistic as is generally the case with initial O&G “moving target” projections.

Days of Activity & Brine Production

The most active regions of the Utica Shale for well pad activity has been much of Muskingum County and its border with Guernsey and Noble counties; laterals are in production every 1 in 2.1-3.4 days. Conversely, the least active wells have been drilled along the Harrison-Belmont border and the intersection between Harrison, Tuscarawas, and Guernsey counties.

Brine is a form of liquid drilling waste characterized by high salt loads and total dissolved solids. The laterals that have produced the most brine to date are located in a large section of Monroe County and at the intersection of Belmont, Monroe, and Noble counties, with total brine production amounting to 23,292 barrels or 734,000-978,000 gallons (Fig. 1).

Total Ohio Utica Shale Production Days 2011 to Q1-2015

Total Ohio Utica Shale Oil Production 2011 to Q1-2015

Total Ohio Utica Shale Gas Production 2011 to Q1-2015

Total Ohio Utica Shale Brine Production 2011 to Q1-2015

Figure 1. Total Ohio Utica Shale Oil, Gas, and Brine Production 2011 to Q1-2015

This area is also one of the top three regions of the state with respect to Class II Injection volumes; the other two high-brine production regions are Morrow and Portage counties to the west and southwest, respectively (Fig. 2).

Layout & Volume (2010 to Q1-2015, Gallons) of Ohio’s Active Class II Injection Wells

Figure 2. Layout & Volume (2010 to Q1-2015, Gallons) of Ohio’s Active Class II Injection Wells

However, on a per-day basis we are seeing quite a few inefficient laterals across the state, including Devon Energy’s Eichelberger and Richman Farms laterals in Ashland and Medina counties. Ashland and Medina are producing 230-270 barrels (8,453-9,923 gallons) of brine per day. In Carroll County, one of Chesapeake’s Trushell laterals tops the list for brine production at 1,843 barrels (67,730 gallons) per day. One of Gulfport’s Bolton laterals in Belmont County and EdgeMarc’s Merlin 10PPH in Washington County are generating 1,100-1,200 barrels (40,425-44,100 gallons) of brine per day.

Oil & Gas Production

Since the last time we modeled production the oil hotspots have shrunk. They have also become more discrete and migrated southward – all of this in contrast to the model proposed by the OGS in 2012. The areas of greatest productivity (i.e., >26,000 barrels of oil) are not the central part of the state, but rather Tuscarawas, Harrison, Guernsey, and Noble counties (Fig. 1). The intersection of Harrison, Tuscarawas, and Guernsey counties is where oil productivity per-day is highest – in the range of 300-630+ barrels (Fig. 3). The areas that the OGS proposed had the highest oil potential have produced <600 barrels total or <12 barrels per day.

Per Day Ohio Utica Shale Oil Production 2011 to Q1-2015

Per Day Ohio Utica Shale Gas Production 2011 to Q1-2015

Per Day Ohio Utica Shale Brine Production 2011 to Q1-2015

Figure 3. Per-Day Ohio Utica Shale Oil, Gas, and Brine Production 2011 to Q1-2015

The OGS natural gas region has proven to be another area of extremely low oil productivity.

Natural gas productivity in the Utica Shale is far less extensive than the OGS projected back in 2012. High gas production is restricted to discreet areas of Belmont and Monroe counties to the tune of 947,000-4.1 million Mcf to date – or 5,300-18,100 Mcf per day. While the OGS projected natural gas and natural gas liquid potential all the way from Medina to Fairfield and Perry counties, we found a precipitous drop-off in productivity in these counties to <1,028 Mcf per day (<155,000 Mcf total from 2011 to Q1-2015) or a mere 6-11% of the Belmont-Monroe sweet spot.

Conclusion: A Shrinking Utica Shale Play

Simply put, the OGS 2012 estimates:

  • Have not held up,
  • Are behind the times and unreliable with respect to citizens looking to guestimate potential royalties,
  • Were far too simplistic,
  • Mapped high-yield sections of the “play” as continuous when in fact productive zones are small and discrete,
  • Did not differentiate between per day and total productivity, and
  • Did not address brine waste.

These issues should be addressed by the OGS and ODNR on a more transparent and frequent basis. Combine this analysis with the disappointing returns Ohio’s 17 publicly traded drilling firms are delivering and one might conclude that the structural Utica Shale bubble is about to burst. However, we know that when all else fails these same firms can just “lever up,” like their Rocky Mountain brethren, to maintain or marginally increase production and shareholder happiness. Will these Red Queens of the O&G industry stay ahead of the Big Bank and Private Equity hounds on their trail?

Injection wells in OH for disposing of oil and gas wastewater

Threats to Ohio’s Water Security

Ohio waterways face headwinds in the form of hydraulic fracturing water demand and waste disposal

By Ted Auch, PhD – Great Lakes Program Coordinator, and Elliott Kurtz, GIS Intern and University of Michigan Graduate Student

In just 44 of its 88 counties, Ohio houses 1,134 wells – including those producing oil and natural gas and Class II injection wells into which the industry’s waste is disposed. Last month we wrote about Ohio’s disturbing fracking waste disposal trend and the disproportionate influence of neighboring states. (Prior to that Ariel Conn at Virginia Tech outlined the relationship between Class II Injection Wells and induced seismicity on FracTracker.) This time around, we are digging deeper into how water demand is related to Class II disposal trends.

Ohio’s Utica oil and gas wells are using 7 million gallons of freshwater – or 2.4-2.8 million more than the average well cited by the US EPA.1 Below we explore the inter-county differences of the water used in these oil and gas wells, and how demand compares to residential water demand and wastewater production.

Please refer to Table 1 at the end of this article regarding the following findings.

Utica Shale Freshwater Demand

Data indicate that there may be serious threats to Ohio’s water security on the horizon due to the oil and gas industry.

OH Water Use

The counties of Guernsey and Monroe are next up with water demand and waste water generation at rates of 14.6 and 10.3 million gallons per year. However, the 11.4 million gallons of freshwater demand and fracking waste produced by these two counties 114 Utica and Class II wells still accounts for roughly 81% of residential water demand.

The wells within the six-county region including Meigs, Washington, Athens, and Belmont along the Ohio River use 73 million gallons of water and generate 51 million gallons of wastewater per year, while the hydraulic fracturing industry’s water-use footprint ranges between 48 and 17% of residential demand in Coshocton and Athens, respectively. Class II Injection well disposal accounts for a lion’s share of this footprint in all but Belmont County, with injection well activities equaling 77 to 100% of the industry’s water footprint (see Figure 1 for county locations and water stress).

Primary Southeast Ohio Counties experiencing Utica Shale and Class II water stress

Figure 1. Primary Southeast Ohio counties experiencing Utica Shale and Class II water stress

The next eight-county cohort is spread across the state from the border of Pennsylvania and the Ohio River to interior Appalachia and Central Ohio. Residential water demand there equals 428 million gallons, while the eight county’s 92 Utica and 90 Class II wells have accounted for 15 million gallons of water demand and disposal. Again the injection well component of the industry accounts for 5.8% of the their 7.7% footprint relative to residential demand. The range is nearly 10% in Vinton and 5.3% in Jefferson County.

The next cohort includes twelve counties that essentially surround Ohio’s Utica Shale region from Stark and Mahoning in the Northeast to Pickaway, Hocking, and Gallia along the southwestern perimeter of “the play.” These counties’ residents consume 405 million gallons of water and generate 329 million gallons of wastewater annually. Meanwhile the industry’s 69 Class II wells account for 53 million gallons – a 2.8% water footprint.

Finally, the 11 counties with the smallest Utica/Class II footprint are not suprisingly located along Lake Erie, as well as the Michigan and Indiana border, with water demand and wastewater production equalling nearly 117 billion gallons per year. Meanwhile the region’s 3 Utica and 18 Class II wells have utilized 59 million gallons. These figures equate to a water footprint of roughly 00.15%, more aligned with the 1% of total annual water use and consumption for the hydraulic fracturing industry cited by the US EPA this past June.

Future Concerns and Projections

Industry will see their share of the region’s hydrology increase in the coming months and years given that injection well volumes and Utica Shale demand is increasing by 1.04 million gallons and 405-410 million gallons per quarter per well, respectively. The number of people living in these 42 counties is declining by 0.6% per year, however, 1.4% in the 10 counties that have seen the highest percentage of their water resources allocated to Utica and Class II operations. Additionally, hydraulic fracturing permitting is increasing by 14% each year.2

Table 1. Residential, Utica Shale, and Class II Injection well water footprint across forty-two Ohio Counties (Note: All volumes are in millions of gallons)

Table1

Footnotes & Resources

1. In their recent “Assessment of the Potential Impacts of Hydraulic Fracturing for Oil and Gas on Drinking Water Resources” (Note: Ohio’s hydraulically fractured wells are using 6% reused water vs. the 18% cited by the EPA).

2. Auch, W E, McClaugherty, C, Gallemore, C, Berghoff, D, Genshock, E, Kurtz, E, & Jurjus, R. (2015). Ramification of current and future production, resource utilization, and land-use change in the Ohio Utica Shale Basin. Paper presented at the National Environmental Monitoring Conference, Chicago, IL.

Ohio’s Shale Oil and Gas Firms Disappoint Shareholders

By Ted Auch, Great Lakes Program Coordinator

A financial crisis seems to have been averted as the price of crude oil is beginning to stabilizeat least for now. One must wonder how such a volatile market affects oil and gas’ Wall Street, private equity, and pension fund followers, however. We have found that many oil and gas (O&G) shares have experienced steep valuation declines in the last few years for companies operating in Ohio.

Share[d] Values

To approach such a broad question, we focused our assessment on Ohio and looked at the share performance of the 17 publicly traded firms operating in the Ohio Utica region since the date of their respective first Utica permits. The Date of First Permit (DFP) ranges between 12/23/2010 for Chesapeake Energy to 3/20/2013 for BP.

US Energy Leverage

Across these 17 companies there are, quite expectedly, winners and losers. On average their shares have experienced 3.75% declines in their valuation or -00.81% per year in the last several years, however. This might be why many of Wall Street and The City’s major banks have limited – or ended – their lines of credit with energy firms from Ohio to the Great Plains. Others are still picking off the highly leveraged losers one by one for pennies on the dollar (Corkery and Eavis, 2015; Staff, 2014). This cutoff of credit and disturbingly high levels of debt/leverage may explain why we found, in a separate analysis, that while cumulative producing oil and gas wells have increased by 349% and 171%, respectively, the rate of permitting needed to maintain and/or incrementally increase these production rates has been 589%.

Cross-Company Comparisons

Ohio Utica Shale Publicly Traded Companies Return

Figure 2. Annual change in share price (%) for 17 publicly traded firms operating in the Ohio Utica shale since their date of first permit

The biggest losers in Ohio’s oil and gas world include Chesapeake Energy. Chesapeake (CHK) is also the largest player in the Buckeye State based on total permits and total producing laterals, accounting for 41% and 55%, respectively. CHK has seen its shares decline on average by 9.1% each year since their DFP (Figure 2). Antero (-10.7% per year), Consol Energy (-7.8%), and Enervest (-12.1%) have experienced similar annual declines, with investors in these firms having seen their position shrink by an average of 37%. Eclipse shares have declined in value by nearly 20% per year, which pales in comparison to the 30-33% annual declines in the share price of Halcon, Atlas Noble, and XTO Energy.

Conversely, the biggest winners are clearly Carrizo (+49% per year), PDC Energy (+41%), and to a lesser degree smaller players like EQT (+22%), Hess Ohio (+8.4%), and Anadarko (+7.9%). Interestingly, the second most active firm operating in Ohio is Gulfport Energy, and their performance has been somewhere in the middle – with annual returns of 10.3%.

Out of State – The Bigger Picture

But before the big winners light up celebratory cigars, it is worth putting their performance into perspective relative to the rest of the field as it were. In an effort to be as fair as possible we chose the Dow Jones Industrial Average and S&P 500 – two indices that everyone has heard of because they are viewed as broad indicators of US economic growth. Incidentally, the DJIA includes the O&G companies Exon and Chevron. Exon is a multinational firm not involved in Ohio’s Utica development, while Chevron is involved. Additionally, the S&P 500 includes those two firms, as well as 39 other energy firms. Nine of those currently operate in Ohio. To assess these companies’ performance with the most energy-centric indices we have compared Ohio Utica players to the S&P 500’s Energy Index, which strips away all other components of its more famous metric, as well as the Vanguard Energy Index Fund. The latter is described by Vanguard as the following on the Mutual Funds portion of its website:

This low-cost index fund offers exposure to the energy sector of the U.S. equity market, which includes stocks of companies involved in the exploration and production of energy products such as oil, and natural gas. The fund’s main risk is its narrow scope—it invests solely in energy stocks. An investor should expect high volatility from the fund, which should be considered only as a small portion of an already well-diversified portfolio.

In reviewing these four indices we found that they have outperformed the 17 oil and gas firms here in Ohio or the Ohio Energy Complex (OEC), with annual rates of return (ROR) exceeding 35% (Figure 3). This ROR value was not approached or exceeded by any of the 17 OEC firms except for PDC Energy and Carrizo. However, these two companies only account for 2.8% of all Utica permits and 4.4% of all producing Utica laterals to date. Even if we remove the broader indicators of economic growth and just focus on the two energy indices we see the US energy space ROR has experienced annual growth rates of 33% or 7% below the broader US economy but impressive nonetheless. With such growth in the number of companies drilling for oil and gas, it is likely that we will see significant consolidation soon; some of the world’s largest multinationals like Exxon and Total may step in when all of the above are priced to perfection, which is something Exxon’s Chariman and CEO, Rex Tillerson, eluded to in a speech in Cleveland last June.

US Economic Performance and Energ Industry Metrics

Figure 3. Annual % Return of Two Broad Economic and Two Energy Specific Indices.

The performance of the OEC indicates investors and/or lenders will not tolerate such a performance for much longer. Just like our country’s Too-Big-To-Fail banks, boards, CEOs, and shareholders were bailed out, it seems as though a similar bubble is percolating in the O&G world; the same untouchables will be protected by way of explicit or implicit taxpayer bailouts. Will Ohioans be made whole, too, or will they be left to pick up the pieces after yet another natural resource bubble bursts?

References

Corkery, M., Eavis, P., 2015. Slump in Oil Prices Brings Pressure, and Investment Opportunity, The New York Times, New York, NY.

Staff, 2014. Shale oil in a Bind: Will falling oil prices curb America’s shale boom?, The Economist, London, UK.

Is Carroll Co. truly the king of Ohio’s Utica counties?

Yes and No…

By Ted Auch, Great Lakes Program Coordinator, FracTracker Alliance

We know from the most recent Ohio Department of Natural Resources (ODNR) permitting numbers that Carroll County, Ohio is home to 26% (461 of 1,778) of the state’s Utica permits and 43% (312 of 712) of all producing wells as of the end of Q3-20141 (Figure 1). But does that mean that the county will continue to see that kind of industrial activity for the foreseeable future? The primary question we wanted to ask with this latest piece is whether the putative “king” of the state’s Utica shale gas counties is indeed Carroll County.

Ohio’s Utica Permits within & adjacent to the Muskingum River Watershed as of February, 2015.

Fig 1. Ohio’s Utica Permits within & adjacent to the Muskingum River Watershed as of February, 2015

To do this we compiled an inventory of annual (2011-2012) and quarterly OH shale gas production numbers for 721 laterals throughout southeast OH.

Permitting and production numbers are not necessarily part and parcel to determine if Carrol Co is truly the king. We decided to investigate the production data and do a simple compare and contrast with the rest of the state’s 409 laterals on one side (ROS) and the 312 Carroll laterals on the other – focusing primarily on days of production and resulting oil, gas, and brine (Table 1 and infographic below).

Carroll vs. ROS Results

Permitting Numbers Breakdown

Monthly and cumulative Utica Shale permitting activity in Carrol County, OH vs. the Rest of State (ROS) between September 2010 and January 2015

Fig 2. Monthly & cumulative Utica Shale permitting activity in Carrol County, OH vs. the ROS between September 2010 & January 2015

Between the initial permitting phase of September 2010 and January 2105 the number of Utica Shale permits issued in the ROS has averaged 29 per month vs. 10 per month in Carroll County. Permitting actually increased twofold in the ROS in the last 12 months (Figure 2). Conversely, permitting in Carroll County seems to have reached some sort of a steady state, with monthly permitting declining by 23% in the last 12 months. Carroll’s Utica permits generally constituted 47% of all permitting in OH but more recently has dipped to 44%. Newer areas of focus include Belmont, Guernsey, Noble, and Columbiana counties, just to name a few.

Production Days

Days in production is a proxy for road activity and labor hours. Carroll’s wells have the rest of the state beat for that metric, with an average of 292 (±188 days) days. The state average is 192 days, with significant well-to-well variability (±177 days). If we assume there was a total of 1,369 possible production days between 2011 and the end of Q3-2014, these averages translate to 21% and 14% of total possible production days for Carroll and ROS, respectively.

Oil Production

Carroll falls short of the ROS on a total and per-day basis of oil production, although the 442-barrel difference in total oil production is likely not significant. Carroll wells are producing 74 barrels of oil per day (OPD) (±73 OPD) compared to 96 OPD (±122 OPD) for the rest of the state; however, well-to-well variability is so large as to make this type of comparison quite difficult at this juncture. Fifty-seven percent of OH’s 11,361,332 barrels of Utica oil has been produced outside of Carroll County to date. This level of production is equivalent to 16,231 rail tanker cars and roughly 00.18% of US oil production between 2011 and 2013.

This number of rail tanker cars is equivalent to 6% of the US DOT-111 fleet, or 184 miles worth of trains – enough to stretch from Columbus to Pittsburgh.

Natural Gas

The natural gas story is mixed, with Carroll’s 312 wells having produced 13,430 MCF more than the ROS wells. On a per-well basis, however, the latter are producing 3,327 MCF per day (MCFPD) (±3,477 MCFPD) relative to the 2,155 MCFPD (±1,264 MCFPD) average for Carroll’s wells. Yet again, well-to-well variability – especially in the case of the 409 ROS wells – is high enough that such simple comparisons would require further statistical analysis to determine whether differences are significant or not.

The natural gas produced here in OH currently amounts to roughly 00.51% of U.S. Natural Gas Marketed Production, according to the latest data from the EIA.

Waste – Brine

From a waste generation point of view, the ROS laterals have produced 41 more barrels of brine per day (BPD) than the Carroll laterals and 1,465 BPD since production began in 2011. On a per-day basis, the ROS laterals are producing more oil than waste at a rate of 1.92 barrels of oil per barrel of brine waste. Conversely, since production began these respective sums result in Carroll County laterals having produced 1.56 barrels of oil for every barrel of brine vs. the 1.40 oil-to-brine ratio for the ROS. Finally, it is worth noting that the 7,775,130 barrels of brine produced here in OH amounts to 13% of all fracking waste processed by the state’s 235+ Class II Injection wells.

What do these figures mean?

As we begin to compare OH’s Utica Shale expectations vs. reality we see that the “sweet spot” of the play is truly a moving target. The train seems to have already left – or is in the process of leaving – the station in Carroll County (Figures 3 and 4). It seems two of the most important questions to ask now are:

  1. How will this rapidly shifting flow of capital, labor, and resources affect future counties deemed the next best thing? and
  2. What will be left in the wake of such hot money flows?

Answers to these questions will be integral to the preparation for the inevitable sudden or slow-and-steady decline in shale gas activity. These dropouts are just the most recent in a long line of boom-bust cycles to have been foisted on Southeast OH and Appalachia. Effects will include questions regarding watershed resilience, local and regional resource utilization (Figures 5 and 6), social cohesion, tax-base uncertainty, roads, and a rapidly changing physical landscape.

Whether Carroll County can maintain its perch on top of the OH shale mountain is far from certain, but whether it will have to begin to – or should have already – prepare for the downside of this cliff is fact based on the above analysis.

Additional Figures and Charts

Table 1. Carroll County, OH production days and production of oil, gas, and brine on a per-day basis and in total between 2011 and Q3-2014 vis à vis the “Rest of State”

Variable Carroll (312) Rest of State (409)
Max Sum Mean Max Sum Mean
Total Days 914 91,193 292±188 898 78,430 192±177
Oil (Barrels)
Per Day 453 23,190 74±73 601 39,109 96±122
Total 83,098 4,838,147 15,507 129,005 6,523,185 15,949
Gas (MCF)
Per Day 6,774 672,391 2,155±1,264 18,810 1,360,923 3,327±3,477
Total 2,196,240 168,739,064 540,830 3,181,013 215,706,401 527,400
Brine (Barrels)
Per Day 941 18,516 59±87 810 40,839 100±120
Total 36,917 3,105,260 9,953 99,095 4,669,870 11,418
Oil Per Unit of Brine
Per Day 1.25 1.92
Total 1.56 1.40

Figures 3a-d. Spatial distribution of Carroll County Utica Shale production days, oil (barrels), natural gas (MCF), and brine (barrels) on a per-day basis.

Spatial distribution of Carroll County Utica Shale production days

Fig 3a. Spatial distribution of Carroll Co. Utica Shale production days

Spatial distribution of Carroll County Utica Shale oil (barrels) production on a per-day basis

Fig 3b. Spatial distribution of Carroll Co. Utica Shale oil (barrels) production on per-day basis

Spatial distribution of Carroll County Utica Shale natural gas (MCF) production on a per-day basis

Fig 3c. Spatial distribution of Carroll Co. Utica Shale natural gas (MCF) production on per-day basis

Spatial distribution of Carroll County Utica Shale brine (barrels) production on a per-day basis

Fig 3d. Spatial distribution of Carroll County Utica Shale brine (barrels) production on a per-day basis

Figures 4a-d. Spatial distribution of OH Utica Shale production days, oil (barrels), natural gas (MCF), and brine (barrels) on a per-day basis.

Ohio Utica Shale Total Production Days, 2011-2014

Fig 4a. Ohio Utica Shale Total Production Days, 2011-2014

Ohio Utica Shale Total Oil Production (Barrels), 2011-2014

Fig 4b. Ohio Utica Shale Total Oil Production (Barrels), 2011-2014

Ohio Utica Shale Total Natural Gas Production (MCF), 2011-2014

Fig 4c. Ohio Utica Shale Total Natural Gas Production (MCF), 2011-2014

Ohio Utica Shale Total Brine Production (Barrels), 2011-2014

Fig 4d. Ohio Utica Shale Total Brine Production (Barrels), 2011-2014

Figures 5a-d. Histograms and Spatial distribution of OH Utica Shale total hydrochloric acid (HCl, gallons) and silica sand (tons) demands.

Histogram of OH Utica Shale total Hydrochloric Acid (HCl, gallons)

Fig 5a. Histogram of OH Utica Shale total Hydrochloric Acid (HCl, gallons)

Spatial distribution of OH Utica Shale total Hydrochloric Acid (HCl, gallons)

Fig 5b. Spatial distribution of OH Utica Shale total Hydrochloric Acid (HCl, gallons)

Histogram of OH Utica Shale total Silica Sand (10^3 Tons)

Fig 5c. Histogram of OH Utica Shale total Silica Sand (10^3 Tons)

Spatial distribution of OH Utica Shale total Silica Sand (Tons)

Fig 5d. Spatial distribution of OH Utica Shale total Silica Sand (Tons)

Figures 6a-b. Histograms and Spatial distribution of OH Utica Shale total resource utilization in terms of pounds per lateral.

Histogram of OH Utica Shale total materials used (10^6 Pounds)

Fig 6a. Histogram of OH Utica Shale total materials used (10^6 Pounds)

Spatial distribution of OH Utica Shale total materials used (Pounds)

Fig 6b. Spatial distribution of OH Utica Shale total materials used (Pounds)

Endnote

1. Additionally, all of Carroll County’s permitted wells lie within the already – and increasingly so – stressed Muskingum River Watershed (MRW) which has been a significant source of freshwater for the shale gas industry courtesy of the novel pricing schemes of its managing body the Muskingum Watershed Conservancy District (MWCD) (Figure 1). Carroll laterals are requiring 5.41 million gallons per lateral Vs the state average of 6.58 million gallons per lateral.

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