Appalachian Basin

Oil & Gas Industry Links Up With Logistics Council

This week the Columbus Region Logistics Council (CRLC) hosted an educational event titled “Central Ohio Logistics and the Shale Play”.  CRLC members got first hand advice and information from key people in the industry including Rhonda Reda of the Ohio Oil & Gas Energy Education Program (OOGEEP), Mark Matusick of Chesapeake Energy, and Linda Woggon of the Ohio Chamber of Commerce and Ohio Shale Coalition.  The council saw the need to educate the members after learning shale development will benefit and affect all of Ohio, not just eastern counties.

It made sense for CRLC to get involved and understand their potential role in the shale supply chain because much of their mission benefits the growing oil and gas industry.  The CRLC aims to do the following:

  • Fostering a logistics – friendly business environment
  • Developing and enhancing an advanced logistics infrastructure
  • Infusing working-class logistics technology into regional industry
  • Building a high-skill workforce for a competitive advantage

Members of CRLC first heard from Rhonda Reda with the OOGEEP.  She gave an Oil & Gas 101 while also explaining to the crowd where the industry is today and also how to interpret things they hear in the media.  For example, she told members to be wary of headlines.  Over the past year, some media outlets have claimed the oil and gas industry is slowing down and less wells are being drilled than ever before.  The latter is true, but it’s misleading.  She explained that because of technology, we can develop less wells but produce more oil and natural gas.  She also explained the difference between Ohio and other states including what is actually coming out of the ground and where we are with midstream development.

Since the council’s pillars include workforce training, Reda highlighted some of OOGEEP’s work including teacher training, firefighter training, and the organization working with more than 55 training centers, universities, vocational schools, and technical centers in Ohio.  She ended her presentation by giving some advice.  She told the crowd to find out where their company fits in.  She urged them to find out what their good at and find out how that benefits the industry.

Next, Linda Woggon Executive Vice President of the Ohio Chamber of Commerce and Executive Director of the Ohio Shale Coalition, talked about the economics of Ohio’s shale development and how big it could really be.  She explained the Coalition’s economic assessment and the benefits coming Ohio’s way including jobs, investment and tax revenue.  She took time during the event to chat with Energy In Depth about the event:

I specifically talked to them about our economic assessment study. It showed them how this is going to have a broad impact on Ohio’s economy. Whether you’re upstream, midstream, or downstream there’s an opportunity for everyone.  We’re going to create thousands of jobs and have a huge impact on growing Ohio—Linda Woggon (:18)

Mark Matusick of Chesapeake Energy gave CRLC members an industry perspective.  First, he gave the crowd and update on Chesapeake’s operations in Ohio.  He stated they are the largest leaseholder in the state and have hired 550 employees since coming to Ohio in 2010.  They’ve paid $34 million in wages and spent $3.3 billion on capital investment.  They’ve spent $50 million direct investment on Ohio roads, upgrading more than 150 miles.

He then focused on explaining the different jobs available to Ohioans from the shale play.  He said most of the jobs won’t be direct, working with actual operators.  He said many will be indirect and induced.  Of the 38,000 jobs created by shale development last year, only 4,000 were direct. Therefore, there are many opportunities for those in the logistics industry.

Overall, the CRLC hosted a great event.  Many members had insightful questions for the speakers and were eager to get involved.  If there’s something we’ve learned over the past two years, it’s that every industry has a role in Ohio’s growing oil and gas industry.

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