GCP Insight
Striking Gold from Natural Gas

Ohio may have struck gold in the form of major shale deposits. Utica shale that contains natural gas has been found beneath significant portions of eastern and central Ohio with small pockets in Northwest Ohio.

New techniques and technologies for harvesting these deposits are creating tremendous possibilities for its potential impact on our economy, with horizontal drilling as the real game changer.

Businesses and residents in Pennsylvania already are benefiting from this advancement through the harvesting of Marcellus Shale natural gas found between 3,000 and 4,000 feet beneath the surface of much of

Harvesting Utica shale can be an economic “boom.”

By Judith Malone

the state. A Pennsylvania State University study reports that, in 2008, the Marcellus gas industry directly added $1.1 billion to Pennsylvania’s economy, which then generated indirect and induced impacts totaling $2.3 billion.

Impact on business

This activity has had a value-added impact upwards of $200 million on Pennsylvania’s mining, construction, wholesale trade, real estate and professional service sectors. In addition, health and social services, transportation and warehousing, finance and insurance sectors each have generated more than $100 million.

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Large water-filled trucks like this one will be used
to free natural gas from Utica shale formations
running deep beneath eastern Ohio.
Source: Philadelphia Inquirer

And there’s more. Utilities, manufacturing, retail trade, administrative, as well as accommodation and food services generated more than $50 million in response to the creation of the Marcellus gas industry.

Overall, the study found that for each Marcellus well drilled, $6.2 million in economic impact is generated.

Can Ohio cash in?

Industry experts believe these deposits present even more potential for our region and state. The Ohio Gas and Oil Association estimates the creation of more than 200,000 direct and indirect jobs by 2015 from exploration, leasing, drilling and pipeline construction, resulting a $22 billion in wages.