Job & Economic Impact
Geologists and energy companies have indicated they can tap vast reserves of natural gas and crude oil from two shale formations in Ohio, the Marcellus and Utica. The private investments being made by oil and gas companies in Ohio have the ability to lower utility bills, create jobs and improve the economy.
WHAT IS THE IMPACT ON OHIO’S ECONOMY?
A study commissioned by the Ohio Oil and Gas Energy Education Program (OOGEEP) in 2011 indicates that Ohio’s natural gas and crude oil industry reinvested approximately $246 million on new exploration and development in 2011 and is estimated to ramp up to $14 billion by 2015. The study also shared that the industry, via its expenditures, could generate approximately $12.3 billion to the gross state product and have a statewide output or sale of $23 billion.
The affordability of natural gas is likely to encourage continued manufacturing investments in the state. Energy-intensive manufacturing companies, which had been moving overseas for cheaper energy, can stay home promising more jobs, higher incomes and a better energy future for Ohioans.
Ohio's steel industry is already experiencing increased demand for steel used in production of the shale:
- In February 2011, the Youngstown Vindicator reported V&M Star Steel announced a new plant with 350 new Ohio jobs because of the proximity to Ohio shale production.
- In December 2010, U.S. Steel Corp. announced a $95 million expansion of its Lorain, Ohio, tubing plant, south of Cleveland. It is expected to create 150 temporary construction jobs and 100 full-time jobs in addition to 500 existing jobs. According to the Pittsburgh Tribune-Review, this expansion is directly related to increased demand as a result of shale production.
- The Pittsburgh Tribune-Review reports TMK IPSCO Steel Company “recently doubled production” and is hiring at its Brookfield, Ohio plant.
Watch the following video to see how the oil and natural gas industry is benefitting Carrollton, Ohio.
HOW MANY JOBS DOES THIS CREATE IN OHIO?
Ohio’s natural gas and crude oil industry could help create and support ten of thousands of Ohio-based jobs from the leasing, royalties, exploration, drilling, production, and pipeline construction activities from the Utica shale reserve. According to the OOGEEP study, this could result in Ohio experiencing an overall wage and personal-income boost of $12 billion by 2015 from industry spending if the Utica shale play proves viable. The OOGEEP study indicates that the expansion of the oil and natural gas industry will also support job growth in the retail, hospitality and real estate sectors.
In fact, we are already seeing Buckeye jobs as a result of the oil and natural gas industry. These jobs are not just for those who work directly in energy related fields,but also those that are in other industries as well, such as suppliers, restaurants and various businesses that support the industry. For an example, please take a moment to watch the following video:
Source: Energy Tomorrow
OHIO ENERGY INDUSTRY JOB PORTAL
As many Ohioans continue to look for work during a challenging economy, Energy In Depth’s job portal is Ohio's first energy-only jobs site focusing on opportunities supported by the Utica Shale. It is designed as a one-stop resource to help Ohioans find rewarding work and industry-leading educational programs to become qualified for future opportunities in Ohio's oil and natural gas industry. Click here to go to EID’s jobs portal.
- Ohio Shale Coalition: Study Forecasts Major Investments, Growth in Jobs (Ohio Shale Coalition)
- Economic Impact Study Results (OOGEEP)
- Ohio: Securing America's Energy Future
- American Energy Works (API)
- Shale Country (API)
- Shale Answers (API)
- The Economic and Employment Contributions of Unconventional Gas Development in State Economies (IHS)
- An Analysis of the Economic Potential for Shale Formations in Ohio
- America's New Energy Future: Unconventional Oil & Gas (US Chamber of Commerce)