Central Ohio Seeing Benefits Of Utica Shale
Utica Shale development has made a significant impact in eastern Ohio. In the past year, developing counties like Carroll, Mahoning and Jefferson have seen unemployment rates decline and their tax revenues grow significantly. As Ohioans outside the eastern region of the state are beginning to recognize the great potential Utica Shale development will bring, recent articles this week highlight how central Ohio businesses are already sharing in these benefits.
Two central Ohio companies will soon be direct beneficiaries of natural gas development in the Utica Shale. Worthington Industries, a Columbus based metal processing company recently bought Bremen, Ohio’s Westerman Companies for $70 million. Westerman is a tank and pressure cylinder construction company that provides services in both the Utica and Marcellus Shale formations. With this purchase, Worthington is able to gain a foothold in the supply side of shale development.
Westerman has an impressive customer base, including many companies active in the drilling of the Utica and Marcellus shale formations. It also positions us to support the North American energy production revival.- Worthington Industries Chairman and CEO John McConnell (Worthington Industries buys Westerman Co., 9/17/12)
Mr. McConnell has it right; this is a North American energy production revival. Thanks to shale development, Ohioans have already saved $1.5 billion in energy savings. Not only are we seeing energy savings, but shale development is projected to create tens of thousands of jobs in the coming years to help develop and support this growing industry in Ohio.
The second big announcement for central Ohio this week came from Hess Corporation, who bought the natural gas marketing portion of Delta Energy of Dublin,Ohio. This acquisition should be beneficial to Hess, who has a significant acreage position in Jefferson, Harrison, Guernsey and Belmont counties. With developing Utica Shale in eastern Ohio, its fitting that Hess would purchase a natural gas marketing company to help them get natural gas and natural gas liquids to market.
We see this transaction as an ideal fit with the expertise, product offerings and geographic footprint of our growing energy marketing business,- John Gartman, senior vice president Hess Energy Marketing (Hess buys Delta Energy’s gas-marketing operations, 9/17/12)
Hess, who has marketed natural gas to Ohio since 2000, saw the need to expand their marketing position. With this acquisition Hess will become the largest provider of energy contracts to commercial and industrial customers in Ohio.
With these two major investments, central Ohio residents should relish in the fact that Ohio’s shale development is already providing direct benefit to it’s workforce, and it’s local economy. From low cost energy and feedstock to supplying materials needed for the development of shale, Utica Shale development is already reaching far and wide, and helping revive all regions of Ohio’s manufacturing base.