Shale study predicts 65K jobs, $5B GDP growth from drilling by 2014

Please note that the study can be downloaded from this posting.  Let us review both sides of the issue and find a balance that serves our community with overall good.

Robin L Brower

Business First by Jeff Bell, Staff reporter

Date: Tuesday, February 28, 2012, 10:42am EST

Jeff Bell

Staff reporter - Business First

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Development of Utica shale gas resources in Ohio has the potential to create or support more than 65,680 jobs by 2014 at an average wage of $50,225 a year, according to findings in a study released Tuesday.
The study, commissioned by the Ohio Shale Gas Coalition, also said Utica shale activity could significantly boost Ohio’s gross domestic product and state and local tax revenues.
The coalition, led by the Ohio Chamber of Commerce Ohio Chamber of Commerce Latest from The Business Journals Utica shale worth B to Ohio economy: ReportRight-to-work push lacks GOP leaders' supportIssue 2 behind him, Kasich ready to chase jobs Follow this company , hired a team of researchers from Cleveland State University, Ohio State University Ohio State University Latest from The Business Journals Utica shale worth B to Ohio economy: ReportTop of the List: Innovators with most patents awarded, 2006-10Ohio immigrants better educated – report Follow this company and Marietta College to conduct the study (download it here). The oil and gas industry, plus politicians such as Gov. John Kasich, have said drilling for natural gas and wet gases such as ethane, butane and propane in the Utica shale formation could become an economic game changer for Ohio.
The research team reached its conclusions after looking at mineral leasing activity, road and bridge construction related to development, drilling and completing wells and building of post-production natural gas infrastructure such as pipelines, processing plants and storage facilities.
The study team said Ohio’s gross domestic product can be expected to increase by $4.9 billion in 2014 due to development of the Utica shale play. That would equal a 1 percent increase in Ohio’s gross domestic product, which would be greater than the average annual statewide growth rate of 0.6 percent for the past 13 years.
In addition, the study found Utica shale activity would boost state and local tax revenues by $433.6 million in 2014, an exponential increase over the $16.5 million generated by such activity last year.
But the study also said the oil and gas industry is facing a number of challenges as it develops the Utica shale play. They involve a combination of low prices and sizable development costs, including the expense of complying with government regulations meant to contain environmental risks from drilling operations.

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