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How long will the shale industry last in Ohio and the Mahoning Valley?
How long will the shale industry last in Ohio and the Mahoning Valley?
The length and success of the Utica Shale in Ohio depends on many factors. In fact, the industry could cease altogether if the governor and state legislators deem energy exploration unsafe, though it is nearly impossible that scenario will play out under the current regime.
The length and success also depends on the resources underground. There have been plenty of estimates, ranging from decades to half-centuries worth of oil and gas, but the Utica Shale is so young, it is too early to tell exactly how long it will be a boon to Ohio and the Mahoning Valley.
Commodity prices also will play a role. Take for instance the Barnett Shale in Texas. For about a decade now, energy companies have extracted natural gas. But with rock-bottom natural-gas prices, many have pulled out of the region in favor of oil and wet-gas-rich areas such as the Utica Shale.
There have been a number of different estimates regarding jobs created by the oil and gas industry. What type of expectations should citizens have for how many new jobs will come to the area and how many of them will be filled by people from other states?
The Utica Shale will create jobs, but they aren’t guaranteed for Ohioans.
The actual drilling jobs — those with Chesapeake Energy Corp. and BP — likely will be filled by experienced rig workers from other states — at least in the interim, until Ohioans can gain the requisite experience to fill the positions.
Ohioans are more likely to fill positions in the supply chain, such as jobs at V&M Star. But even those are contingent on the right level of education, the ability to pass a drug test and work ethic.
As for the flurry of shale-related jobs studies, only one stands out as truly objective. IHS Global Insight in June said Ohio had 31,462 jobs attributable to shale-gas production in 2010, and that number is expected to increase to 41,366 by 2015 and 81,349 by 2035.
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