Utica Shale Providing Savings for American Consumers
The Utica Shale has been a boon to the state of Ohio, providing jobs, energy, and new investment in the state. But the benefits of shale development go well beyond the well pads and new factories. In fact, one major benefit of this development goes all the way to your pocketbook in the form of lower energy bills.
As a recent Continental Economics report found, the development of natural gas from shale “has significantly reduced U.S. wellhead natural gas prices and reduced Ohio consumers’ natural gas bills.” From the report:
“The average commercial customer used 562 Mcf and saved $1,366, while the average industrial customer used over 35,000 Mcf and saved almost $87,000. In addition, electric generators reduced their costs because of lower wellhead gas prices. This translated into lower fuel charges levied by electric utilities with fuel cost recovery mechanisms, such as Columbus Southern Power and Ohio Power Company, and also contributed to lower wholesale electric prices paid by retail electric suppliers.”
Columbia Gas of Ohio has also used the increased supply of natural gas to reduce prices for its customers. As the Toledo Blade reports, the company stated “this January’s average residential heating bill will be $142.19 to $146.19 for the 1.4 million households it serves, many of them in northwest Ohio.” But, as the article also notes, “had it not been for the current fracking boom, Ohioans might have been looking at 65 to 129 percent higher heating bills this January.
Check out EID’s new fact sheet – Shale Provides Savings for American Consumers — to learn more about how hydraulic fracturing and development of the Utica shale is helping consumers across the state.