New Study Predicts 65,000 New Ohio Jobs

A study released Tuesday predicts over 65,000 jobs and nearly $10 billion in economic development in Ohio, all related to the oil and gas drilling.

According to a recent report in the Akron Beacon Journal, the 81-page study was done by Cleveland State University, Ohio State University, and Marietta College for the Ohio Chamber of Commerce and the Ohio Shale Coalition.  It was funded by the chamber and Ohio industries. 

According to executive director of the Ohio Shale Coalition and executive vice president of the Ohio Chamber of Commerce Linda Woggon, the study is intentionally "very conservative" in its estimates.  The goal was to avoid overshooting realistic expectations while still giving a good idea of what kind of growth can be anticipated.  More after the jump...

33 wells were drilled in Ohio in 2011.  Only four were put into production.  However, there are many more on the way.  Most estimates predict over 1,000 wells to be drilled by 2014.

The new report states that 2,275 new jobs were created by the drilling activity in 2011.  That number is predicted to steadily climb each year until 2014, when it reaches 65,680 jobs created.

Most of the jobs are expected to come from companies that provide contract services to drilling companies.  Average wages will be in the $53,000 range.

In addition to these other gains, the drilling activity is also predicted to add $433.5 million in state and local income tax revenue in 2014 by this study.

The predictions in this new report fall in between estimates from other recent studies.  An industry-backed study done in September by Cleveland's Kleinhenz & Associates predicted 200,000 new jobs in Ohio by 2015, as well as royalty payments to landowners as high as $1.6 billion by 2015.  In contrast, a December study by Ohio State University predicted only 20,000 new jobs in Ohio over the next four years (odd, since OSU was also involved in this new study about which, as mentioned, estimates were said to be "very conservative").

View the new report by clicking here.

Regardless of which prediction ends up closest to the pin, there is no question that Ohio is seeing many new jobs as a result of the oil and gas activity.  Share your thoughts or questions on these developments here in the comments or over at the Daily Digger Forum!

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