A Summary of Issues and Trends Looking to 2016

Despite the recent slowdown in the oil and gas industry, particularly in Ohio, there are still reasons to be excited about the future. As 2016 dawns, let's take a look at what's trending.

Jack Gerard, president and CEO of the American Petroleum Institute, joined the chorus of voices supporting Congress and President Obama in lifting the '70s-era crude export ban.

"This is the start of a new era for U.S. energy," he said. "Ending the decades-old ban on crude exports is a huge win for consumers, jobs, the economy and our energy security."

Gerard said the move would make the U.S. more competitive and would benefit consumers, citing studies indicating that lifting the ban would lower gas prices by up to 12 cents per gallon.

The complete statement from API on the ending of the export ban can be found here.

Production in Ohio's Utica Shale reached record highs in the third quarter of 2015. As Jackie Stewart of Energy In Depth reported earlier this month, production more than doubled over the same quarter in 2014.

"In the third quarter of 2015, the Utica shale produced 5,696,780 barrels of oil and 245,747,686 Bcf (245 billion cubic feet) of natural gas," Stewart wrote. "This sets new records as unconventional shale production totals have increased by more than 100 percent since the same quarter last year."

The article also points out that Carroll County remains one of the state's top oil producers. You can read the entire report here.

Lindsey Klevin of the Ohio Oil and Gas Association discussed the ramifications of lower oil and gas prices in a recent article on OOGA's Oil & Gas Matters blog.

"Robust natural gas production has helped inventories soar to record highs we haven't seen before," Kleven wrote, before also pointing out that new production has slowed "as producers are responding to the current market conditions."

And, while it's a challenging time for producers, consumers are certainly reaping the benefits from higher supplies and resulting lower energy costs, as evidenced by six-year lows on gasoline prices in Ohio: "Consumers are expected to save a reported $7 billion at the pump during this holiday season, which translates out to about $40 per driver."

You can read the entire article here.

In conclusion, we like the sound of Jackie Stewart's summary in her report on Q3 Utica Shale production: "This is all certainly wonderful news for Ohio's growing economy, which--recent reports indicate--will continue to benefit from shale production and the construction of associated infrastructure for years to come."

Here's to 2016!