Plastics, Low Electric Rates from Utica/Marcellus Help NE OH Cos.
How can northeastern Ohio, once thought to be the epicenter for Utica Shale drilling but now yesterday’s news, still profit from the shale drilling revolution happening in the southern part of the state? As Dustin Hoffman’s character was told in The Graduate, one word: plastics. Plastics and petrochemicals were the main focus of the “Plastics Products from Utica Energy” event held in Canton, OH on April 7th. Ethane from Utica and Marcellus Shale drilling can be cracked to produce ethylene, the raw material used in making plastics. With two cracker plants planned in the region–one in Beaver County, PA and one in Parkersburg, WV–petrochemical manufacturers in northeastern OH are in a great geography to take advantage of shale drilling, even if it’s not happening where they are located.
However, plastics is not the only thing Ohio manufacturers need. They also need cheap electricity, and natural gas used to fire electric generating plants is lowering the cost of electricity throughout the region (along with lowering pollution), which is very good news for northeastern OH, giving their manufacturers a leg up on other areas…
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Rice Energy experienced their first well site fatality on Saturday when a Texas man was killed at their Bigfoot 9H drilling site in Belmont County, OH (see
MDN spotted a very brief mention that Noble County, OH signed a lease in February with First Penn Oil & Gas for 6.71 acres of county-owned land for $36,657, or $5,463 per acre. Which on the surface seems like a pretty good deal. We dug some more, having not heard of Penn Oil & Gas, and found that the Caldwell (Noble County), OH School Board also signed a lease with Penn, just a few weeks ago. The school is raking in the dough: terms were $5,400 for 38.6846 acres, or roughly $209,000.