Ohio’s oil production from the Utica Shale dropped for the first time while natural gas production continued to grow in new quarterly data released by the Ohio Department of Natural Resources.
The oil data is new evidence of the continuing industry downturn from low commodity prices hitting Ohio. That downturn has forced some drilling companies into bankruptcy and dramatically slowed shale drilling across the United States.
Until now, oil and natural gas production in Ohio had been growing because of heavy Utica drilling in recent years.
Oil production dipped 12.3 percent from the fourth quarter of 2015, according to first-quarter 2016 production from 1,302 horizontal Utica wells.
Oil production slipped from 6.25 million 42-gallon barrels in fourth quarter 2015 to 5.48 million barrels, according to the data released late on Friday.
The Ohio Department of Natural Resources did not acknowledge the oil drop in its statement.
It pointed out that oil production was up 24 percent in first quarter 2016, compared to first quarter 2015. The production increased from 4.43 million barrels to 5.48 million barrels in that time, the agency said.
Natural gas production from Ohio’s Utica Shale in the first quarter grew by 8.7 percent from fourth quarter 2015.
It increased from nearly 303 billion cubic feet per day in fourth quarter 2015 to 329.5 billion cubic feet in first quarter 2016.
Natural gas production grew by 80 percent from first quarter 2015 to first quarter 2016, the state said.
The average Utica well in Ohio is producing less oil than the fourth quarter of 2015, according to ODNR data.
The typical well saw its oil production dip from 5,081 barrels in the fourth quarter to 4,213 barrels.
Part of that drop is due to drillers shifting away from drilling for oil and instead drilling in natural gas-rich areas because of higher costs to tap and process liquids.
The typical Ohio well saw its natural gas production increase in the quarter: from 245.9 million cubic feet per day to 253 million cubic feet per day.
Ohio law does not require a separate reporting of condensate or natural gas liquids.
The Ohio report is available at http://oilandgas.odnr.gov/production.
Bob Downing can be reached at 330-996-3745 or bdowning@thebeaconjournal.com.