As joint venture partner with Dominion in Blue Racer Midstream and Blue Racer's operator, Caiman is excited to become part of Ohio's rich history of oil and gas production that began nearly 150 years ago. The first production well was drilled in the state in 1859, just a few months after Colonel Edwin Drake's famous oil well was completed near Titusville, Pennsylvania. Today, the Utica Shale formation, which extends across parts of Ohio into West Virginia, is stirring considerable excitement for its potential to bring larger volumes of natural gas and other liquids to major markets in the northeastern United States. We believe the Utica will become one of the most significant liquids-producing regions in the country. Ohio's portion of the Utica is located some 7,000 feet below the surface. According to the Ohio Geologic Survey, the Utica is believed to hold more than 15 trillion cubic feet of natural gas and 5.5 billion barrels of oil. Other experts have suggested that the Utica may house more than 25 billion barrels of oil equivalent, which includes oil, natural gas and valuable liquids like ethane and propane.
According to the U.S. Department of Energy, there are more than 29,000 active oil wells and nearly 27,000 active natural gas wells producing energy in and for Ohio today.
More than $12.2 billion has been in invested in Ohio thanks to Utica Shale development. The Ohio Department of Jobs and Family Services found that jobs related to the Utica rose 30 percent from January 2011 to January 2013, and those jobs provide wages 68 percent higher than Ohio's average.
Over the next five years, the state's oil and gas producers are projected to spend more than $34 billion in exploration and development, midstream, royalty and lease expenditures. Ohio’s natural gas and crude oil industry could generate approximately $12.3 billion to the gross state product and have a statewide output of an estimated $23 billion.
Ohio's elected officials are demonstrating their own sense of excitement over the new prospect of more prolific development of the region's natural gas resources, particularly in the rich-gas production areas of the state. State and regional leaders have indicated they are enthusiastic about new jobs, economic development and growth. These officials are helping to create a business-friendly environment that continues to build to strong partnerships.
Caiman Energy and our team at Blue Racer are excited about this new growth and these new partnerships as well. We are proud to have stepped up alongside exploration and production companies to make the early and ongoing financial investments necessary to ensure that the Utica will realize its vast potential.