Ohio’s Shale Investment Hits $33.7 Billion, Grows by Over 20 Percent in One Year
A new report authored by Columbus law firm Bricker & Eckler LLP estimates that, thanks to the Utica Shale, Ohio is home to an additional $5.7 billion in investment since last spring, a 20.4 percent increase in just one year. These investments include pipelines, natural gas-processing plants, and the development of new natural-gas fired power plants to generate electricity.
The report details 162 projects in Ohio, 16 of which are new since last spring’s report. The new projects listed in this report include:
To date, Bricker & Eckler LLP approximates that the shale industry has invested a total of $33.7 billion in Ohio, a figure that is up from $28 billion last spring despite low commodity prices.
These investment dollars bring much-needed jobs to Ohio, including to the economically depressed counties on Ohio’s Appalachia region, which has recently been dubbed the fifth fastest growing economy in the U.S. Importantly, the labor demand created by growing oil and gas operations extends across several sectors, creating high-paying jobs directly related to drilling (like petroleum engineers, geologists, and geophysicists) and indirectly in fields like law, accounting, retail and service industries, and outlines hundreds of local construction jobs coming on line.
In short, this new report outlines the same conclusions made earlier this year by Harvard Business School which concluded that shale development has been a “game changer” and is a “win-win” for the economy and the environment. Furthermore, and as pointed out by EID previously, these projects generate substantial tax revenue for Ohio’s government. One such project is the Energy Transfer Rover Project, which is anticipated to generate more than $135 million in tax revenue during its first year of operation, $91 million of which will be directed to more than 36 local school districts. Other beneficiaries include local libraries, police departments, fire departments, hospitals, senior services, and mental health facilities.
Bricker & Eckler LLP’s full report, which lists out all 162 projects and the investment dollars associated with them, can be accessed here.