WARREN, Ohio – Total investment by energy companies in eastern Ohio’s Utica/Point Pleasant oil and gas operations since 2011 has reached more than $114 billion, according to a report issued by Cleveland State University.
The Shale Investment Dashboard Ohio, a semiannual analysis commissioned by JobsOhio through CSU’s Levin College of Public Affairs and Education, tracks investment in oil and gas drilling, leasehold purchases, royalty returns and pipeline construction within the Utica/Point Pleasant.
Between 2011 and December 2024 – the most recent year with adequate comprehensive data – cumulative investment in the Utica/Point Pleasant reached an estimate of $114.6 billion, the study reported.
Through the end of 2024, energy companies have spent $82.5 billion in upstream investments – that is, expenses related to drilling, leasing, road infrastructure improvements and royalty payouts to landowners. The study measures these investments beginning in 2011, when energy companies descended on eastern Ohio to explore oil and gas reserves trapped in the Utica/Point Pleasant shale formation.
The Utica has also attracted another $22.5 billion in midstream infrastructure such as gathering lines and compression systems, while another $9.5 billion has been committed to downstream industries – projects such as liquefied natural gas, or LNG, operations, the report says.
Utica Oil Drives Growth in 2024
The latest report – compiled by CSU’s Andrew Thomas and Mark Henning – canvassed the period between July and December 2024. During the second half of 2024, companies invested approximately $3.5 billion into operations, bringing total investment for the year to approximately $6.4 billion
The vast majority of investment was concentrated in upstream development. The analysis shows this investment amounted to $3.236 billion during the period. Energy companies during the six-month period spent more than $2.1 billion in new drilling programs and an additional $88.3 million in securing new leases or lease renewals.
Furthermore, landowners reaped $767.2 million in royalties across the Utica/Point Pleasant during the second half of 2024.
Estimated midstream investment stood at $280.1 million. Downstream spending amounted to $1.8 million during the second half of 2024.
These investments could likely increase in the future, as demand for gas-fired electrical generation plants grows, along with mounting interest in data center development across the state, the report indicated.
“Overall upstream investments were up about $615 million in the second half of 2024 compared to the first half of 2024, reflecting continued growth in drilling activity, especially for oil-producing wells,” the analysis noted.
This investment is evident in new drilling operations in Columbiana County during the period, as EAP Ohio, a subsidiary of Encino Acquisition Partners, commissioned several productive oil wells in Knox Township.
According to the report, 23 new wells were drilled in the county between July and December 2024. Moreover, these drilling programs commanded an investment of $262.2 million from energy companies and approximately another $3.6 million in road improvements. Between July and December 2024, a handful of Columbiana County wells yielded 678,882 barrels of oil.
In all, 191 new wells were developed across the Utica/Point Pleasant during the study period. These wells produced more than 1 trillion cubic feet of natural gas and 19.3 million barrels of oil.
New wells placed into production during the second half of 2024, the report shows, accounted for 29% of the 19.3 million barrels of oil produced in Ohio through the period. This compared with 11% recorded during the first half of the year.
Royalty payments increased 4.2% during the second half of 2024 compared with the first, indicating an increase in oil production and higher natural gas prices.
Although the report tracked investment through the end of 2024, the analysis projected that oil-related development would be steady through the first part of 2025, despite lower commodity prices. “Despite softening oil prices, continued production efficiencies – driven in part by artificial intelligence and by the Utica’s structural cost advantages relative to other shale plays – are likely to sustain oil-related development,” the analysis noted.
Henning, co-author of the study and a research supervisor at CSU, said oil continues to drive new investment in the Utica. “Oil development continues to play an expanding role in upstream investment,” he said in a statement. “Ohio’s regional costs structure and evolving regulatory framework position the state to navigate ongoing uncertainty in the energy sector.”
J.P. Nauseef, JobsOhio president and CEO, said this most recent report confirms the Utica/Point Pleasant as a major international energy resource.
“Ohio’s rich shale resources continue to attract billions in investment, reflecting global confidence in our exceptional workforce, infrastructure and business climate,” he said. “Adding more than $3 billion in just six months demonstrates how abundant, low-cost natural gas is helping our economy and to strengthen our nation’s energy security.”