Ohio’s Natural Gas and Crude Oil Industry Projected to Create Many New Jobs (and Not Just for Lawyers)
Ohio is beginning to feel the economic impact of the tremendous growth in exploration of Utica Shale formations for natural gas and crude oil. In 2014, it is projected that there will be 178,088 jobs in Ohio resulting from the leasing, exploration, drilling, production and pipeline construction activities involving the Utica Shale. (See Kleinhenz & Associates – September 2011 Economic Impact Study – Ohio’s Natural Gas and Crude Oil Industry). According to this study, the number of oil and gas jobs created for Ohioans is expected to be 204,520 by 2015, and wages related to the oil and gas industry in Ohio are projected to increase by more than $12 billion.
Ohio’s oil and gas industry is also expected to generate significant tax income for federal, state, and local governments. The industry is expected to invest $12.4 billion in exploration and development in Ohio in 2014 and $14 billion in 2015 according to the study’s authors. They believe that between 2011 through 2015, Ohio will have generated an estimated $478.8 million in tax revenue from the oil and gas industry. The industry could also contribute approximately $12.3 billion to the state’s gross product and have statewide output or sales of $23 billion. Royalties received by landowners for oil and gas extracted from their properties are expected to total more than $1.6 billion based upon the 2,837 new Utica wells that will have been drilled between 2011 and 2015.
Contact Attorney Matthew R. Duncan for more information concerning Ohio’s oil and gas industry.