Utica Shale to Create 65,000 Jobs, $4.9B in Ohio

by Saaniya Bangee

Rigzone Staff

Wednesday, February 29, 2012

Ohio's oil and gas industry is on the brink of a "dramatic renaissance" according to a new study estimating the buckeye state's shale boom will boost it's economy by nearly $5 billion and more than 65,000 jobs.

The Ohio Shale Coalition, led by the Ohio Chamber of Commerce, enlisted academic researchers from Cleveland State University, Ohio State University and Marietta College to perform an 8-month study on the benefits of Ohio's shale boom.

The report, titled "An Analysis of the Economic Potential for Shale Formations in Ohio," outlined four major investments that will be made in Ohio by oil and gas companies:

The acquisition of mineral rights:
Road and bridge upgrades associated with drilling wells
Drilling and completing wells
Post-production stage of development

Based on the anticipated spending, researchers predicts that by 2014, $4.9 billion will be added to the state's economy and 65,680 new jobs will be created.

The study found that $3.3 billion will be generated in labor income with an average income of $50,225 per job. Over time, labor income will shift from leasing and road construction to drilling and infrastructure maintenance.

Drilling in the Utica Shale will add $433.5 million in state and local taxes in 2014.

According to the study, an increased demand in Ohio drilling will generate nearly:

$571 million in 2012
$1.9 billion in 2013
$3.3 billion in 2014

Earlier in the year, Ohio state officials enforced a moratorium within a 5-mile radius of a Youngstown well after several minor earthquakes were experienced in the area. The decision received public criticism.

Ohio Gov. John Kasich previewed his energy program at the Greater Cleveland Partnership on Tuesday. Shale gas is the first topic in the 10-part package of reforms. Kasich said the policy will be introduced in mid-March.

WHAT DO YOU THINK?

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Jojimon joy | Jun. 7, 2012

good

Rodolfo Anchondo | Mar. 3, 2012

Great, I work in the gas fields in Arkansas and I'm glad theres going to be more jobs available.

david warner | Mar. 1, 2012

I think this could be great for the state of Ohio as it is for Pennsylvania as long as the they dont try taxing the energy companies out of business because that will slow the process and limit the number of jobs

David Cole | Mar. 1, 2012

From a retired Buckeye and land owner concerned about our state and national economy, words fail me to praise the common sense people that are leading this effort. THIS IS AN IMPORTANT ADDITION TO THIS MESSAGE: Fracking the shale has been made an important issue, but the ignorance about the technology to do this correctly is mountainous. A current proven and in use clean water technology that DOES NOT USE HARMFUL CHEMICALS is immediately available. The Chamber of Commerce and others leading this effort should require the services of Hydrozonix/Ecosphere Technologies (ESPH) of Stuart, Florida, to be used for each well requiring fracting. Clean water is used down hole and the flow back water is cleaned for safe return to the environment. This is the ONLY safe clean method currently available. No other systems work as well and the process is cheaper than any other method and does not require trucking as a rule. Phillips & Jordon the main contractor following Katrina in New Orleans and Ecospheres EES in cooperation with ELY and others recommend and support the use of this technology. LETS RESTORE PROSPERITY TO OHIO AND MAKE IT A LEADER IN THE SAFE ENVIRONMENTAL TECHNOLOGY USAGE.