JobsOhio Study Touts Oil, Gas Investment

Gongwer. The oil and gas industry infused nearly $100 billion into Ohio's economy over the last decade, according to a new study from JobsOhio and Cleveland State University.But an Appalachian think tank questioned the findings, arguing that much of that investment benefits out-of-state interests.Both the Ohio Oil and Gas Energy Education Program and the state's quasi-public development arm said the study attests to the "transformative investment" tied to the industry.The study identified $95.3 billion in total investment from 2011 to June 30, 2021, including upstream, midstream and downstream benefits.The report also broke down figures for the first half of 2021, including a downturn in midstream investment for the first half of the year amid the lingering COVID-19 pandemic.Other takeaways for the first six months of 2021 identified by the report were:· $2.3 billion in direct investment, nearly all of which went to upstream activities.· 74 new wells drilled, 36 of which were in Jefferson County, which led other counties.· $1 billion in royalty payments to Ohio landowners.George Brown, executive director of the education program, said that level of investment is matched only by the recent Intel announcement in which the company pledged $20 billion to build two advanced facilities by 2025. (See Gongwer Ohio Report, January 21, 2022)"The Utica Shale is one of the most important economic development tools Ohio has," Mr. Brown said. "It has not only attracted jobs and the direct investment of more than $95 billion to our state, but offers a reliable source of energy for manufacturers looking to reshore manufacturing here. As our country searches for abundant, affordable and American-made energy, homegrown Ohio natural gas and oil is providing the essential energy we need."JobsOhio President and CEO J.P. Nauseef said the study attests to the industry's critical role in the state."Ohio has developed the natural gas, natural gas liquids, and petrochemical supply chain industries to bring important jobs to hard-working Ohioans," Mr. Nauseef said. "We have an exceptional opportunity to grow these important industries and establish Ohio as a major international player in shale-related productivity."The report drew pushback from Sean O'Leary, senior researcher at the Ohio River Valley Institute, who questioned the impact of that investment. He argued the "vast majority" of that investment benefits out-of-state suppliers and workers."The natural gas industry's celebration of the amount of money invested in Ohio is a diversion from the fact that those investments contribute little or nothing to job and income growth in the region," Mr. O'Leary said."Between 2008 and 2019, the seven Ohio counties that produce 95% of the state's natural gas and the place where the bulk of the ostensible 'investment' took place, saw employment decline by over 8%," he said. "That's over 6,700 lost jobs."Click here to view the original article.