First Choice Energy

Wednesday, December 12, 2012

How Close Were Shale Predictions for Ohio in 2012?

From Crain's Cleveland Business:
As 2012 comes to a close, it's a good a time to take a look at some of the predictions surrounding the Ohio shale play that were made early in the year, and to make a few guesses at what we will see in 2013.

While it is hard to get our hands on many of the data points, there is one key number that helps to project the others and that is the number of wells. In early 2012, sponsored by a broad base of businesses, a consortium of university professors lead by Cleveland State University released a study entitled “An Analysis of the Economic Potential for Shale Formations in Ohio.” It was not the first economic impact study to be released about the shale play in Ohio, but it was the most conservative, and it uniquely built an Ohio-model for economists to update as the play grows. 
Key to that report was a prediction that Ohio would have 160 horizontal shale wells completed in 2012 for a total of 193 wells in production. So how did the team do? The Ohio Department of Natural Resources, the state-level regulatory agency for the industry, reported as of Dec. 1 that Ohio had 195 completed horizontal wells in the Utica and Marcellus shale formations. In my book that tells me their predictions were right on target.
Read the entire article by clicking here.

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