The Ohio Shale Coalition released a new economic study yesterday prepared researchers from Cleveland State University, Ohio State University and Marietta College. The study projects annual production of oil and gas from the Utica Shale in the state will reach $9.6 billion by 2014 along with an eye-popping 65,000+ jobs. And those jobs will have an average salary of more than $50,000 per year, adding an additional $3.3 billion in labor income in the state. Both a high level overview and a copy of the full 81-page report are embedded below. (MDN is honored to have scored a few mentions in the “News Articles and Web Sources” section of the study.)
MDN particularly likes this graphic from page 39 showing net acreage leaseholds held by drilling companies:
The study says this economic miracle in Ohio is brought to you courtesy of hydraulic fracturing. Here is the press release from the Ohio Shale Coalition announcing the study:
Ohio is on the threshold of a potential economic renaissance, according to the results of a new economic impact study released today by The Ohio Shale Coalition.
The study focused on the economic impact and opportunities associated with the development of the Utica Shale in Ohio. Researchers at Cleveland State University, The Ohio State University, and Marietta College conducted the survey.
“Since updates in technology have made drilling in the Utica shale possible, people have been euphoric over the economic prospects of shale development in Ohio,” said Linda Woggon, Executive Director of The Ohio Shale Coalition. “Our goal was to take a very reasonable approach to the numbers and develop conservative projections. Even then, the study shows that the potential for job creation and economic investment is considerable.”
The study projects the annual production of oil and gas from the Utica Shale will grow to $9.6 billion by 2014 and the industry will support nearly 66,000 jobs. Job growth will occur in four general areas, including field development and supply chain, mixed sources of demand, professional services and personal services. The study projects the average income of these jobs to be more than $50,000 per year, generating another $3.3 billion in labor income.
In its efforts to develop a conservative economic development model, the Study Team used average estimates from industry experts and company representatives interviewed for the study. The Study Team also omitted some possible economic benefits, such as projections on future spending and shale development.
Additionally, the Study Team did not include the “downstream” benefits of Utica Shale development in the study. “Downstream” impact is the economic benefit to Ohio as a whole from the oil and gas industry operating in the state.
“Ohio’s shale industry is still in its early stages. This study is designed to project the initial economic impact over the next three years,” said Woggon. “We expect shale development to continue growing in Ohio beyond 2014 and the economic benefits to continue.”*
The Ohio Shale Coalition is a broad-based partnership of members including local chambers of commerce, businesses, economic development groups and individuals.
*Ohio Shale Coalition (Feb 28, 2012) – Study Forecasts Major Investment, Growth in Jobs