Friday, April 5, 2013

Ohio, Pennsylvania, and New York - The Different Stories of 3 Shale States

From Energy Tomorrow:
Ohio
The Utica shale formation that dominates the eastern half of the state holds much promise, and energy development is just getting started. Chesapeake Energy, for example, has spent more than $1 billion in Ohio, paying more than $650 million to land and mineral rights owners.
The state’s energy potential, as well as more mature shale development in next-door Pennsylvania, already is generating growth in associated industries, including manufacturing. According to IHS, unconventional drilling employment supports 38,000 jobs, but that is projected to expand to 143,000 by 2020 and 266,000 by 2035. IHS:
Unconventional gas activity contributed value-added economic activity of $4.1 billion in Ohio in 2012. We forecast that this contribution will grow to $35.2 billion by 2035. As for labor income, the average annual wage in Ohio in 2012 is almost $55,000, while the average wage of direct jobs in unconventional gas activity is $81,000, providing a sizable economic boost. There is also the contribution of unconventional gas employment to government revenues. In Ohio in 2012, it generated nearly $1.5 billion in taxes for state and federal coffers. This includes over $910 million in state and local taxes, or the equivalent of about 3.6% of the state’s $25 billion in 2011 revenues.
The last thing state leaders should do is risk hindering the upward trajectory of figures for employment, wage and income and revenue generated for government – which a proposed increase in the state’s severance tax could do.
Read the rest of the summary of Ohio, as well as the stories of Pennsylvania and New York, by clicking here. 

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