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Shale jobs to multiply for years, study says



Published: Wed, June 13, 2012 @ 12:10 a.m.

Ohio’s growth expected to catch up with Pa.’s

By Burton Speakman

bspeakman@vindy.com

youngstown

Ohio and Pennsylvania already rank in the top 10 nationally in terms of jobs created by shale-gas production.

In the next 25 years, each state will experience significant growth in terms of shale jobs, said John Larson, primary author of a report for IHS, a company that compiles such information.

In 2010, Ohio had 31,462 jobs attributable to shale-gas production. According to the study, that number is expected to increase to 41,366 by 2015 and 81,349 by 2035.

Meanwhile, Pennsylvania has 56,884 jobs that are part of work in the Marcellus Shale. The study expects that figure to increase to 111,024 in 2015 and 270,058 by 2035.

Ohio’s growth lags a bit because it started in shale development later than Pennsylvania, Larson said. “I expect Ohio at some point to roughly reach the same levels as Pennsylvania,” he said.

This study compares to one released in 2011 by Kleinhenz & Associates, prepared for the Ohio Oil and Gas Energy Education Program, that claimed drilling would create 200,000 jobs in Ohio by 2015.

Thus far, there have been 1,500 to 2,000 jobs announced for the Mahoning Valley related to work in the Utica Shale, said Eric Planey, vice president of International Business Attraction for the Youngstown/Warren Regional Chamber.

“These are jobs that have been announced in the supply portion of the business,” he said. “We have not yet gotten our arms wrapped around how many drilling jobs have been created.”

Planey agreed that Ohio is behind Pennsylvania at this point in terms of shale jobs created, but he does expect the state to catch up to its eastern neighbor.

Early in the drilling process, jobs in Ohio may be filled by workers from other states, Larson said. As the industry matures, local workers will be trained and out-of-state workers will become residents.

Pennsylvania and Colorado will lead the nation in terms of job growth through 2015 with expected compound annual growth rates of 14 percent and 10 percent, respectively, according to the study.

Nationwide, the expectation is only for 1.6 percent growth in employment, Larson said.

Pennsylvania’s figures are a good sign in a time of slow economic recovery, he said.

Other states with unconventional gas production also are expected to see job growth above national averages, Larson said.

Job growth in the Mahoning Valley is not limited to shale positions.

Employers within the Youngstown-Warren-Boardman metropolitan service areas expect to hire at a strong pace during the third quarter of 2012, according to the Manpower Employment Outlook Survey released Tuesday.

During the quarter, 17 percent of the companies interviewed plan to hire more employees, while 2 percent expect to reduce staff. An additional 80 percent expect to maintain their current work-force levels, and 1 percent are not certain, according to the report.

“The employment forecast for the third quarter is healthier compared to the second quarter of 2012,” said Jeanne Farmer, Manpower spokesperson. “Employers expect much improved employment prospects compared with one year ago when the Net Employment Outlook was 1 percent.”

The IGH study further focuses on increases in expected revenue.

Growth in unconventional gas development already has had an impact on the tax base in Pennsylvania.

Pennsylvania received $1.48 billion in 2010 from the natural-gas industry, while Ohio received $317 million in revenue.

The commonwealth’s 2010 state budget included $11 billion for public transportation and $9 billion for public safety and criminal justice. A combination of corporations, businesses and individuals supporting unconventional natural-gas activity paid a combined total of $641 million in taxes to Pennsylvania state and local governments that year, accounting for 6 percent of the state’s transportation budget and 7 percent of spending on public safety and criminal justice.

Unconventional gas activity supported more than 1 million jobs nationally in 2010, and it will grow to support nearly 1.5 million by 2015, according to the study.

“Even nonproducing states will see an economic impact by serving as suppliers for producing states,” Larson said.


Comments

1ewymer(4 comments)posted 2 years, 2 months ago

Too bad 90% of the unemployed workforce will remain unemployed due to drug use.

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2UticaShale(853 comments)posted 2 years, 2 months ago

As the makers, doers, and producers continue their march into the the Mahoning Valley, the foreign occupying entitled class, who have raped and plundered Youngstown for 30 years will begin to be displaced. The army of taxpayers are methodically taking back the abandoned lands and structures built by their forebears during the great steel mill days.
They come armed with the knowledge that Youngstown was founded and developed by their Capitalist forefathers and was once a great powerhouse of production. They understand that the history of depopulation was the result of industry migration, leaving Youngstown's infrastructure void to be filled by the subsidized entitled tax suckers. The tax suckers who have destroyed the great monuments built by capitalism. denegrated all the sacred land with used tires, dead pets and murdered bodies.
The battle will be intense for the entitled current welfare stronghold of Youngstown is armed with the tax sucking army of food card, housed, heated, free energy and medical soldiers, led by their subsidized nonprofit and political generals. They will fight hard and dirty as they have been street educated in the art of crime.
Now as General McArthur's cry "I shall return!" , they are back to claim and continue the new prosperity of Youngstown. "Long Live American Capitalism!"

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3Lifes2Short(3875 comments)posted 2 years, 2 months ago

There's no mention of what kind of jobs there referring to.

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4howardinyoungstown(591 comments)posted 2 years, 2 months ago

Keep in mind that the number given in this article refer to jobs "attributable to shale-gas production" which includes jobs in motels, restaurants, bars, strip clubs, and massage parlors. While any increase in jobs is beneficial for Ohio, I don't think minimum wage jobs are what people think of when they hear about shale jobs, and the industry and most politicians are not portraying them honestly.

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5Bigben(1996 comments)posted 2 years, 2 months ago

Agreed Howard what a load of poop.

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6southsidedave(4780 comments)posted 2 years, 2 months ago

Great and what happens to the environment as a result?

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7Ytown20(118 comments)posted 2 years, 2 months ago

Agreed Howard. And to add to the discussion: Is anyone looking at the potential loss of Ohio workers leaving the state to escape what people see as risks to the environment and their health?

Plus, Youngstown is now known nationally and globally from earthquakes due to frack waste injected here, so if all these jobs come here (sarcasm), what person is going to want to move to Ohio to take them?

If we as Ohio residents cannot push to reign in fracking, does anyone really see Ohio as a place young people are going to want to lay down roots and raise families? I know myself as a younger person, am debating moving because I would not want to raise children here if fracking is able to run roughshod over our beautiful state.

Once again the Vindicator skims the surface. Does anyone want to ask important questions?

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8doubled(210 comments)posted 2 years, 2 months ago

Does it matter? I think so. But it won't make a difference to the numerous miserable posters on here that always - ALWAYS - find something bad to say about anything good that may be going on in our Valley. Wait and see, then remember them.

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