American Oil and Gas Reporter - January 2015 - 207

members created SCOGA to help launch
the industry in the state and provide
essential information and direction for developing reserves in an environmentally
safe manner from the outset. We are optimistic about our state's oil and gas potential,
both onshore and offshore.
Two potential onshore formations are
being assessed for oil and gas: the Florence
Basin and the Daniel River formation, in
which drilling is under way in Lee and
Moore counties in adjoining North Carolina.
South Carolina's potential offshore reserves could be substantial, with an estimated 3.8 trillion cubic feet of gas and
6.5 billion barrels of oil within miles of
the coast. The U.S. Department of Interior
is considering including Atlantic acreage
in the next federal offshore leasing program, which extends from 2017 through
2022.
The SCOGA membership hopes to
persuade geophysical contractors to choose
the South Carolina harbors of Charleston
and Georgetown as the initial ports for
seismic-based research vessels and seismic
studies being authorized for Atlantic development.
Most of South Carolina's political
leadership favors offshore energy production, with polls showing strong public
support as well. Policymakers are working
to open the Atlantic for exploration. U.S.
Senator Tim Scott, R-S.C., is sponsoring
SB 2202, the Southern Energy Access
Jobs Act, which calls for expanding energy
production offshore to create jobs, spur
economic growth, lower energy prices,
develop new educational training programs, and strengthen America's national
security by lessening dependence on foreign energy supplies.
Congressman Jeff Duncan, R-S.C. and
Senator Lindsey Graham, R-S.C., also
are working on legislation to allow offshore
drilling, and Governor Nikki Haley is a
strong advocate because of the potential
benefits to our state and nation.
A National Ocean Industries Association report from Quest Offshore Resources
estimates that revenue from early production could generate $30 million soon
after production begins, as early as 2018.
State government could garner $850 million a year by 2035, considering shared
royalty revenue of 37.5 percent.
Revenue from offshore oil and gas
development could be dedicated to coastal
environmental enhancements to further
demonstrate our state's commitment to
environmental stewardship.
Beginning in 2017, Louisiana will receive 37.5 percent of oil and gas revenues
from Gulf of Mexico production that will
be dedicated to coastal restoration projects.

With $5 billion to $8 billion being generated annually in the Gulf, this revenuesharing funding stream has the potential
to be significant. The same could be true
for South Carolina and other Atlantic
Coast states.
SCOGA is committed to working with
environmentalists to assure the industry
and public of safe drilling and exploration
for the benefit of our citizens and the
protection of wildlife, water and natural
resources of the entire state.
The American Petroleum Institute estimates 11,000 direct jobs will be created
in South Carolina by 2035 from offshore
oil and gas drilling in the Atlantic, which
will contribute more than $2.7 billion to
the state's economy.
A portion of royalty revenue traditionally has been reinvested in colleges
and universities in producing states, and
South Carolina institutions of higher
learning, their students and faculties would
benefit from this new source of funding
as well. We are working with others on a
program to provide endowment funding
for colleges and universities.
SCOGA also is helping identify financial assistance for education and job
training for the oil and gas industry. In
addition to tax revenue, our universities
would receive oil and gas industry grants
for a variety of academic and research
endeavors.
One of our goals is to help develop a
modern, technologically driven infrastructure, including oil and gas pipelines,
with a portion of the shared revenues.
In addition to providing forums to
generate public awareness and foster business relationships among oil and gas pro-

ducers and service companies, SCOGA
is working with other industry organizations to establish a constructive framework
for input into state and federal regulatory
issues.
SCOGA also providing forums to generate public awareness and foster business
relationships among oil and gas producers
and service companies.
SCOGA has reached out to industry
associations in Louisiana, Michigan, Pennsylvania and Illinois for recommendations
on addressing concerns and forming solutions to spur oil and gas development.
Their comments and assistance already
have helped with permitting, leasing, revenue sharing, and other issues.
The oil and gas industry is a good citizen in local communities where opportunities are provided for industry growth
and development. South Carolina wants
to provide those opportunities.
We appreciate the guidance that has
been offered from various sectors, including legal firms, accountants, banks,
individuals and associated industries willing to support developing oil and gas reserves with the clear objective of ensuring
environmental and community well-being.
The members of SCOGA are honored
to be part of developing a new energy
horizon that will benefit the entire country
with jobs, reserves and continued advancements. We invite industry participants
and associated businesses to join us in
this historic effort. For membership information, contact SCOGA directors Perry
Collins, Francis Ford or Justin Sutton at
www.scoga.us or visit www.face book.com/SCOGA.us.
Ì

Southeastern Ohio Oil
& Gas Association
MATT LUPARDUS
Reservoir Engineer
Artex Oil Co.
Marietta, Oh.

FROM THE PRESIDENT
Greetings from the oldest and newest
oil patch in the world. After more than
150 years of oil and gas drilling and production, the industry is still alive in Southeast Ohio. In fact, we are in the midst of
a boom that could push Ohio's total oil
production to levels unseen for more
than a century! The surge in activity also

will push natural gas output well beyond
the previous high reached in the early
1980s.
Of course, this growth is attributable
to development of the Utica Shale, which
began only a few years ago. Ohio is now
home not only to the world's oldest producing oil and gas wells, but also to
JANUARY 2015 207

American Oil and Gas Reporter - January 2015

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