The Shale Gas Economic Effect

American natural gas production has boomed over the past two decades and the benefits of shale gas for southeast Ohio have been immense. This growth is in large part thanks to the discovery of the Shale Crescent. The Shale Crescent encompasses land in Ohio, Pennsylvania, and West Virginia that is rich in shale, a type of rock easily converted into natural gas.

Southeast Ohio has especially prospered from the shale gas boom with money invested, an improved job market, and local supply chain boosts. The benefits of shale gas production are clear with the generation of thousands of jobs and billions in investments. This success has supported the local communities and increased tax revenue for the people of southeast Ohio.

Billions for the Buckeye State

Cleveland State University’s Maxine Goodman Levin School of Urban Affairs released a study highlighting the enormous economic impact that the shale gas industry has had on Ohio. In the first 6 months of 2024 alone, Ohio’s shale-energy sector grew by $2.9 billion in new capital. That brought the total investments at the time to $111.1 billion since 2011.

On top of the over $100 billion invested, significant job growth has occurred in southeast Ohio and elsewhere around the Buckeye State. Jobs in drilling, construction, and transportation have boomed as well as indirect jobs that have supported the growing industry. According to a 2021 PricewasterhouseCooper’s report, hundreds of thousands of jobs have been created since the initial shale boom of 2011.

New business growth surged alongside job growth over the past two decades. According to information released by the Ohio Senate, a snapshot of data reveals that 700 new businesses were established between 2011 and 2018 thanks to the shale industry, generating over $63 billion in new investment and jobs.

Supporting the Shale Crescent Communities

Local families and those not employed in the shale business have also benefitted from shale gas production. The taxes generated by these highly successful drilling companies have been poured back into the communities they operate in.

According to a report from Energy In Depth, “Ohio’s top producing Utica Shale counties have collected over $530 million in real estate property taxes from oil and natural gas activity since 2010.” Another $540 million has been collected from ad valorem taxes. Through this revenue generation, over one billion dollars has been sent back into local communities to support school districts and critical municipal services for the people of southeast Ohio.

The Shale Crescent is projected to remain highly profitable in years to come as the world’s third largest natural gas producing region in the world. Southeast Ohioans will continue to benefit from the economic support as investment and the benefits of shale gas industry boost the region’s communities.

* Source:

https://shalecrescentusa.com/advantages/abundant-natural-gas-supply/

https://engagedscholarship.csuohio.edu/cgi/viewcontent.cgi?article=2855&context=urban_facpub

https://www.ohiosenate.gov/news/on-the-record/natural-gas-is-fueling-jobs-wage-growth-and-a-greener-ohio

https://www.energyindepth.org/new-report-ohio-oil-and-natural-gas-production-fuels-530-million-in-taxes-for-ohio-shale-counties-provides-other-essential-benefits/

https://www.energyindepth.org/new-report-ohio-oil-and-natural-gas-production-fuels-530-million-in-taxes-for-ohio-shale-counties-provides-other-essential-benefits/

https://shalecrescentusa.com/advantages/abundant-natural-gas-supply/