Oil and gas production in eastern Ohio is thriving and the industry should continue growing in the years ahead, says Margeaux Kimbrough, an attorney at Kegler, Brown, Hill + Ritter.
“We have seen a ton of jobs flow into the region related to the drilling and production wells that have already been drilled,” Kimbrough says. “Currently, we’re seeing an increase in the infrastructure that is necessary to move the oil and gas and other constituents from those wells to processing plants. Going into 2015, I expect to continue to see an increase in the amount of infrastructure being put into place, and that means an increase in jobs for Ohioans.”
As more wells are drilled and more oil and gas is unearthed and processed, some remain skeptical about the future and whether the bubble will soon burst. Kimbrough says that doesn’t appear likely.
“There is a lot of upfront demand for these projects and that is eventually going to level off, but probably not for another 10 years,” Kimbrough says. “Right now is a good time to be thinking about how you can become a part of the new development in the region.”
Smart Business spoke with Kimbrough about the process to extract oil and gas in Ohio and what is being done to ensure it happens safely.
How has new technology impacted drilling?
Production wells are drilled thousands of feet into the ground to extract oil and gas from subsurface deposits.
Traditionally, production wells were drilled vertically into the ground, and in order to fully develop a deposit, several vertical wells were drilled over a large surface area. New technology allows drillers to drill vertically and then horizontally into the ground.
This process is called horizontal drilling. As a result, drillers can use one drilling unit with multiple laterals. This new process takes up a lot less surface area than using vertical wells.
What are some misconceptions about hydraulic fracturing?
Hydraulic fracturing is a process where millions of gallons of fresh water mixed with different kinds of chemicals is injected into production wells at a very high pressure. This water, called brine, goes through the pipes, breaks up the rock in the subsurface, and allows the oil and gas to be released and flow back up through the pipe.
Some have expressed concern that injecting so much water into the ground and releasing the chemicals, gas and oil, risks contaminating individual water wells. But the oil and gas wells are drilled thousands of feet deep, much deeper than any water wells. So the concern is really not well-founded.
Can the brine water be treated?
Currently, Ohio does not have any specific regulatory provisions that would allow a company to treat brine water and dispose of it through state waterways.
The safest way to dispose of brine water is to inject it back into the ground through injection wells.
Injections wells are used to inject the brine water into porous rock.
The Ohio Department of Natural Resources, the state agency with regulatory authority over injection wells, has instituted new regulations to ensure that injection wells are not located near fault lines in an effort to address concerns about the potential for seismic activity.
What is the economic impact of all of this drilling?
The eastern region of Ohio has seen a substantial increase in the number of hotels, restaurants and supportive services needed to react to the demand created by the oil and gas boom.
Although you may not be directly connected to the oil and gas business, there is significant demand for ancillary services that are going to support development in this region for several years to come.
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