Blog: A Shift in Drilling from Pennsylvania to Ohio

Publication Date: 
November 26, 2013

Chris LilienthalCross posted at Third and State

To follow up on my blog post Monday, here is a look at how shale drilling has shifted from Pennsylvania to Ohio and other areas with growth in shale oil production beginning in 2012.

A Shift in Drilling from PA to OH

As gas prices increased nationally, the number of active natural gas rigs in the United States grew from 559 in September 1999 to a peak of 1,585 rigs in September 2008 when the wellhead price was $6.71 and had already begun to fall. As prices continued to drop, the number of operating gas rigs fell by two-thirds from the peak.

Beginning in 2005, shale oil production began to gain ground in Texas and North Dakota. In mid-2009, as gas prices dropped and oil prices began to rebound from the recession, drill rigs were increasingly deployed for oil rather than gas production. The number of operating oil rigs increased from fewer than 200 in 2009 to more than 1,400 in mid-2012.

Learn more in a new report on shale's employment impact from the Multi-State Shale Research Collaborative — a group of research organizations, including the Keystone Research Center and Pennsylvania Budget and Policy Center, tracking the impacts of shale drilling.

We'll be back with more findings from the report after the holiday. Happy Thanksgiving.