The oil and gas industry is entering a new phase of development, and the Utica Shale remains a central focus for operators, investors, and landowners alike. As we head into 2025, shifting market dynamics, infrastructure developments, and increased industry activity are shaping what’s next for Ohio’s energy sector.
LNG Expansion and Regulatory Shifts
Following recent political changes, industry experts anticipate a loosening of energy regulations, particularly around liquefied natural gas (LNG) exports. The prior administration had placed a hold on LNG projects, but those projects are expected to ramp back up along the Gulf Coast and East Coast.
This shift is crucial for the U.S. to become a stronger net exporter of natural gas, which not only bolsters national security but also stabilizes the supply-demand curve. With an abundant gas supply, being able to export more efficiently will help balance the market and sustain stronger pricing.
Rising Prices and Market Activity
After prolonged lows, both oil and natural gas prices have experienced a notable lift.
- Oil prices have risen from $69 per barrel to $80 in the last month.
- Natural gas is currently above $4/MMBtu, aided by a colder-than-expected winter and reduced production.
With gas production slowing throughout the country—including the Utica and Marcellus plays—operators are being cautious about bringing on new supply too quickly. If current prices hold, more rigs may return to the gas window in Ohio, Pennsylvania, and Appalachia to capitalize on the market upswing.
The Future of the Marcellus and Utica Plays
The Marcellus Shale is becoming increasingly relevant in Ohio’s energy landscape. Gulfport and other operators have recently drilled test wells, and by 2025, new permits are expected in Ohio. However, there are still many unknowns, including how far west drilling can economically extend.
The condensate window in the Utica Shale remains the primary driver of activity. If oil prices stay in the $75-$80 range, this area will continue to attract drilling interest. Additionally, EOG Resources has signaled plans to add one to two more rigs, which will provide clearer insights into operators’ long-term plans.
Infrastructure: Can It Support Growth?
One of the biggest questions heading into 2025 is whether the current oil and gas infrastructure can handle increased activity in the condensate window.
- Much of the region’s oil is currently being trucked to refineries in Canton OH, Toledo OH, and in Kentucky, but EOG is actively working on building new pipeline infrastructure to better support future production.
- Unlike the gas-heavy regions in eastern Ohio, which required extensive pipeline development over the years, the condensate window benefits from existing shallow well infrastructure from previous generations of drilling.
- Operators are keeping an eye on whether regional refineries, which can process up to a million barrels per day, will need to scale up to meet increasing demand.
What This Means for Landowners in 2025
With increased drilling activity and rising mineral values, landowners should prepare for more competition among buyers in the coming year.
- Higher oil and gas prices will likely result in more direct outreach—expect an increase in letters, phone calls, and marketing pieces from companies looking to purchase mineral rights.
- More leasing opportunities may emerge as companies seek to secure acreage in key drilling areas.
- As competition rises, having an experienced, trustworthy buyer is more important than ever.
Gateway Royalty remains committed to being the most competitive and accurate buyer in the Utica Shale region. Our proven track record, deep industry knowledge, and over $300 million investment in Eastern Ohio set us apart. If you’re a mineral owner who has questions about development or has received offers, we encourage you to reach out for a firm, fair, and aggressive offer from a trusted industry leader.
If you’re interested in learning more about what the evolving market means for your mineral rights, contact us today.
