Ohio Utica well permits rose in January

Permits to drill wells in Ohio's Utica shale rose slightly in January from the month prior.

The state approved 58 permits in January, up by eight permits from December 2018, according to data from the Ohio Department of Natural Resources.

December permits soared by 92pc from November, likely on the start-up of more takeaway capacity from the Appalachian production region and expectations of increased winter demand.

Monthly permit counts have rebounded recently after spending much of 2018 below levels in 2017. January permits were more than double the 26 approved in January 2018, while December permits were 19pc higher than a year earlier.

Permits issued per month in 2018 ranged from nine to 50, and totaled 253 for the full year, a 44pc drop from total permits issued in 2017.

Spot natural gas prices at Dominion Transmission South in January averaged $2.85/mmBtu, 10pc lower than a year earlier. Argus forward prices show Dominion South averaging $2.42/mmBtu in March, suggesting lower demand next month.

Production in the Appalachia shale region in December topped 31.1 Bcf/d, according to estimates from the US Energy Information Administration, with January output expected to rise above 31.3 Bcf.