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Ohio shale jobs at 38,000

Published: Thu, December 20, 2012 @ 12:08 a.m.

Growth rate among highest in the nation

By Burton Speakman



A study shows shale already has generated more than 38,000 jobs in Ohio.

Ohio has one of the highest growth rates from shale nationally based on the estimates in the study, which was released Wednesday, said Christopher Guith, vice president of the U.S. Chamber Energy Institute, which co-sponsored the study.

The estimates include a modifier of 3.5 to 4 indirect jobs created for every job that is tied directly to shale. The rate is one of the highest of any industry. The study was conducted by IHS, an energy-research firm.

“Pennsylvania got its growth a few years ago,” he said. “Ohio is supposed to surpass Pennsylvania by 2020.”

“The IHS study shows Ohio currently has a total of 38,380 jobs related to unconventional gas and oil activity, a number expected to increase to 143,595 in 2020 and to 266,624 by 2035,” said Christina Polesovsky, associate director of the Ohio Petroleum Council.

The job number reflects the impact of exploration taking place in the Utica Shale, she said.

“Because of the significant investments made in Ohio and encouraging well results, the IHS is forecasting a substantial increase in oil- and gas-development jobs,” Polesovsky said.

Those jobs at the well are just a portion of the overall economic impact of shale, Guith said. There also are a number of positions that support the supply chain of oil and gas.

Much of the growth in Ohio is attributable to the liquid gas, such as propane, that is being found in the Utica Shale, he said.

“Some of the wells have been disappointing with more dry gas found than expected, but most of the wells have produced more liquids than expected,” Guith said.

The wet gas being found in the Utica Shale is why companies are moving from northeastern Pennsylvania, where the Marcellus Shale contains almost all dry gas, to western Pennsylvania, West Virginia and Ohio, where wet gas is being found, he said. The movement is because of the historically low prices for dry natural gas.

This study helps to verify the numbers put out in a study a year and a half ago that people said was “crazy” and overstated because of its connection to the oil and gas industry, said Rhonda Reda, executive director of the Ohio Oil and Gas Education Program.

When the industry first started talking about the growth that was possible it was difficult for people to grasp, she said.

“Now we’re starting to see the employment numbers and the investment dollars,” Reda said. “There are people who want this to happen tomorrow, but it’s not going to happen tomorrow. It’s something that’s going to build over a series of years.”

Reda agreed with Guith that development has been faster than projected in part because of what is being found in test wells and core samples. The industry is finding three products — oil, wet gas and dry gas — that provide more value.

“We knew what was coming. That’s why we’ve been working with 45 different colleges, universities, community colleges, technical schools and career centers to ensure that we have a trained work force,” Reda said.

Ohio must continue developing the infrastructure and trained work force for the industry, she added.

“Shale energy is a game-changer for America and for Ohio,” said Karen Harbert, president and CEO of the Energy Institute. “The latest installment of this study allows us to quantify just how significant the impact on Ohio’s economy will be. It provides all the more reason to strongly support responsible shale-energy development.”

One of the areas where shale helps is with government revenues. The study stated that Ohio oil- and gas-related businesses contributed nearly $1.5 billion to the state government. The figure is anticipated to increase to more than $6.7 billion in 2020 and nearly $12.7 billion in 2035.

This is money that can help the state and federal government offset cuts that are going to be made to necessary programs such as Medicare to balance the budget, Guith said.


1timOthy(802 comments)posted 2 years, 11 months ago

All from other States too !

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2uselesseater(229 comments)posted 2 years, 11 months ago

Paid study by the industry. This isn't research, it's advertising deception.

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3iBuck(231 comments)posted 2 years, 11 months ago

Let me get this straight.

The frackers are treated as suspect. Sure, they'll sell you what you need to keep your home warm in winter, cook your food, synthesize certain plastics, but there might be the possibility of some problem; and the media cranked up the brain-storming machine to imagine bizarre catastrophes. They have to beg to the local and state and federal governments for permissions. They have to negotiate leases by the hundreds and thousands, short-term and long-term, to have access. Their wells are inspected and tested... repeatedly. The areas around their wells are tested... repeatedly, in search of imagined problems which have not materialized. And, in short order, they deliver, handing over $1.5G to the state government coffers, and employ 38.4K people.

But still they're painted as possible malefactors; after all, they could have paid 4 times the sale value of the land they're leasing instead of just 2 times the sale value.

OTOH, Tata, based in India, is handed $19M in incentives by Ohio state and local governments (i.e. out of tax-victims' pockets) in exchange for vague promises that they may employ 1K people. Those people may be (and, based on historical practices probably will be) natives of India or Red China or various South American countries -- the state government "development" office says it would be overly burdensome to ask. They're almost all young, according to their PR recruited "from colleges throughout the region" whatever that means; US citizen STEM professionals over age 35 with actual productive experience in the field need not apply. At one point, they said they had just over 400 on-board, now it's back down in the mid-300s. Tata bluntly refuses to say how many or what percentage are US citizens, let alone how many are native Buckeyes.

Yet, the media machine has been singing Tata's praises since 2007 when they first hinted they might want to set up their "North American Headquarters" bodyshop in Ohio (not to be confused with Tata's "North American Headquarters" they set up in Buffalo, NY, several years earlier with much fanfare and speechifying by Hillary Clinton, and which employed, according to the mayor, between 10 and 25 total people of unspecified citizenship/nationality; nor to be confused with their more recently established "North American Headquarters" in Southfield/Detroit, MI at which they promised to some day employ 400 or 500 people of unspecified nationality; nor with their new bodyshop at 8300 Normandale in Bloomington, MN at which they promise to employ 300 people of indefinite citizenship)...

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4iBuck(231 comments)posted 2 years, 11 months ago

...nor with their new bodyshop at 8300 Normandale in Bloomington, MN at which they promise to employ 300 people of indefinite citizenship).

Meanwhile, the USA has about 2 million US citizen STEM workers not employed to do STEM work (based on BLS numbers, analyzed by Steve Camarota). For a decade or more they've been hiring only about one-third to one-half of our new STEM grads (Hal Salzman & B. Lindsay Lowell). Unemployment rates for STEM occupations are running 2 to 3 times what they were in full employment times (BLS). (And yes, that includes medical scientists, biochemists, biophysicists, physicists, chemists, chemical engineers, mathematicians, software engineers, software architects, programmers, computer hardware engineers, mechanical engineers, civil engineers, and petroleum engineers.)

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5uselesseater(229 comments)posted 2 years, 11 months ago

@iBuck, Tata is a horrid company. Right to question giving freebies to the Indians, Chinese, etc.

Tata has it's roots in technology as you have alluded to.

Question I have is what is Tata building in this country? Sounds like automobiles...

Tata loves our foreign exchange type programs. Indians and other Asians even with hefty education will very often work for peanuts and exploit the value of the dollar vs. buying power back home where they funnel their cash. They are notoriously hard working hoarders. Good people, but not good at all for local economies as the only group being employed.

Fracking has it's issues. Any time you see a report or study from an industry about its industry it should be heavily scrutinized, audited, etc.

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6ytownredux(117 comments)posted 2 years, 11 months ago

I am calling BS on this "study", an offshoot from the U.S. Chamber of Commerce, and we know what partisan hacks they are. So if we take them at their word, if there is 38,000 jobs derived from the workers at 3.5 - 4% average, means that we have had 10,965 direct shale jobs created so far. I have not seen that increase, and I would like to see those facts of where those people have got jobs.

As they say, you can a study to tell you anything, depending who does the story. I wouldn't trust the U.S. Chamber as far as I can throw them.

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7Bigben(1996 comments)posted 2 years, 11 months ago

"The estimates include a modifier of 3.5 to 4 indirect jobs created for every job that is tied directly to shale." - - -I am in agreement with the majority of comments here. It smells in every direction of propaganda. Lots of generalizations and fortune telling.

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