Ohio’s New Energy Promise
This week the United States Chamber of Commerce, through its Institute for 21st Century Energy, released part two of a three-part series studying the topic of shale benefits state by state in a study called America’s New Energy Future. The comprehensive study was completed in conjunction with the American Petroleum Institute, American Chemistry Council, America’s Natural Gas Alliance and the Natural Gas Supply Association.
Some of the key highlights of the study show us that in Ohio more than 38,830 jobs have been created, including direct, indirect and induced categories. Also, 143,595 new jobs will be created by the year 2020. By the year 2035, the number will climb to 266,624.
Karen Harbert who serves as President and CEO of the Energy Institute at the U.S. Chamber explained the importance of shale development in Ohio:
Shale energy is a game changer for American and for Ohio, the latest installment of this study allows us to quantify just how significant the impact on Ohio’s economy will be. It provides all the more reason to strongly support responsible shale energy development (U.S. Chamber’s Energy Institute Co-sponsors Study on Shale Benefits by State, 12/19/12)
IHS, a leading global energy research firm, looked at three main components of job creation in order to gain the full scope of job creation in the state.
Direct: Contributions of unconventional oil and gas energy development are those required to explore, produce, transport and deliver products to downstream elements or activities that provide critical on site equipment and services.
- Scientific and Technical services
- Truck Transport
Indirect: Contributions are activities in outside industries that supply materials and services to the developers of unconventional oil and gas and to their tier of suppliers.
- Administrative and Support services
- Real Estate
Induced: Contributions are the economic effects from workers spending their wages on salaries on consumer goods and household items.
- Food and Beverage
- General Merchandise Stores
The report also showed remarkable increase in tax revenue both at the local and state level. In 2012 over $911 million was paid to state and local government in Ohio and is estimated to grow to $4.5 billion a year by the year 2020. The total paid in taxes by this industry from the year 2012 to the year 2035 will be a staggering $120 billion to both local and state government.
According to Linda Woggon who serves as both executive vice president of the Ohio Chamber of Commerce and the executive director of the Ohio Shale Coalition Utica Shale development is already having a positive effect on local communities here in Ohio and will provide significant revenue in the future for our state.
Ohio is already seeing a significant boost to our economy from shale energy, and this new study shows that much more is to come,” said Linda Woggon, executive vice president of the Ohio Chamber of Commerce and executive director of the Ohio Shale Coalition. “The billions of dollars in new state and local government revenue will help support schools, infrastructure and other needs for our state, while the hundreds of thousands of new jobs will provide an economic boost for our families. (Shale expected to bring jobs, 12/20/12)
Unions throughout Ohio are also recognizing the significant impact shale development is having on our state. In a recent interview, Butch Taylor, Business Manager, for Local 396 Plumbers and Pipefitters, said he has seen tremendous growth throughout their local, going from 40 percent unemployment among members to 100 percent employment, with a 12 percent growth in membership.
Due to the growth, Local 396 has now increased the number of times per year they take applications due to the influx of work they are receiving.
We’ve put 108 new members in the last two years. It’s really growing. And about 13 new contractors through that time period so it’s really growing and growing fast. Applications for the apprenticeship program will be taken on the third Wednesday of each month through April. – Marty Loney, Local 396 (Shale Industry Leads to Growth of Pipefitters Union, 12/19/12)
During this holiday season, it is great to know that over 38,000 Ohioans are now working thanks to Utica Shale development. As noted in the study this number will continue to increase providing more good paying jobs for our residents throughout Ohio, helping to lead our state back to prominence.