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:
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:
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.
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