Ohio’s Growing Shale Energy Industry Has Attracted Over $74 Billion in Investment Since 2011
$4.6 billion was invested in the state through the first half of 2018
COLUMBUS, Ohio–(BUSINESS WIRE)–Total investment in Ohio’s resource rich shale energy sector has reached
$74 billion since tracking began in 2011, according to a Cleveland State
Prepared for JobsOhio, the report represents the most recent data
available and covers shale investment through the first half of 2018. It
comes just weeks after IHS Markit released estimates that by 2040, the
Utica and Marcellus shale region, of which Ohio is a significant part,
will supply nearly half of all U.S. natural gas production.
The study from CSU’s Energy Policy Center at the Maxine Goodman Levin
College of Urban Affairs, showed that drilling activity slowed, but
remained significant in Ohio from January to June 2018. During the first
half of the year, investment in Ohio’s upstream, midstream, and
downstream energy ecosystem totaled $4.6 billion, the study showed.
Upstream activities, such as drilling or royalties, accounted for more
than $3.4 billion of this total. According to the Ohio Department of
Natural Resources, 157 wells were listed as “drilled, drilling or
producing” in Ohio, with Belmont, Monroe, and Jefferson counties
representing the most active areas.
Total Estimated Upstream Utica Investment: January-June 2018
|Lease Renewals and New Leases||$793,428,000|
|Lease Operating Expenses||$191,148,000|
Total Estimated Upstream Investment
Investment continued in Ohio’s midstream assets, which include assets
such as pipelines, processing plants, and storage, in the first six
months of 2018. The investment included nearly $400 million worth of
construction starts for processing plants, which represent the
compression, dehydration and fractionation necessary in the processing
of natural gas resources. However, the period saw more limited
investment in transmission lines, largely due to the recognition of the
Nexus pipeline investment being attributed completely to the second half
Total Estimated Midstream Investment: January-June 2018
|Gathering System Compression and Dehydration||$229,600,000|
|Transmission Lines (including compression and interconnect)||$98,120,000|
|Rail Transloading Facilities||$3,000,000|
Total Estimated Midstream Investment
Progress was underway in the development of several downstream energy
assets during the first half of 2018, including natural gas-fired
electrical generation facilities, a Cleveland Cliffs hot briquetted iron
plant, and a compressed natural gas fueling station in Columbus.
However, the natural gas generation facilities were not included in the
investment numbers; permitting was underway for several natural gas
power plants at the start of 2018, but none had yet started construction.
Total Estimated Downstream Investment: January-June 2018
Manufacturing/Industrial Plants with Natural Gas as a Critical
|Petrochemical Plants (Including Refineries)||$17,500,000|
|Natural Gas Refueling Stations||$1,000,000|
Total Estimated Downstream Investment
Indirect investments, such as development of new manufacturing in the
area as a result of lower energy costs, were not included in the study.
“The landscape for American energy looks vastly different now than it
did just 5 or 10 years ago, and that is largely due to the resources
being unlocked in the Ohio Valley,” said Matt Cybulski, director of
energy and chemicals at JobsOhio. “Whether you are directly involved in
the oil & gas value chain, a petrochemical company, or an
energy-intensive manufacturer looking for a new home, it is impossible
to ignore what these abundant, low-cost feedstocks can do for your
Much of this growth can be attributed to Ohio’s proximity to the Utica
and Marcellus shale formations in eastern Ohio, offering a large supply
of low-cost natural gas, natural gas liquids (NGLs) and oils, and
accounting for more than 85 percent of U.S. shale gas production growth
This study was the fifth in a series CSU has prepared on investment in
the Utica Shale. A full history of the reports can be found here.
For more information on Ohio’s growing energy industry, visit: www.JobsOhio.com/energy.
JobsOhio is a private, nonprofit corporation designed to drive job
creation and new capital investment in Ohio through business attraction,
retention and expansion efforts. JobsOhio works with six regional
partners across Ohio: Appalachian
Partnership for Economic Growth, Columbus
Development Coalition, REDI
Growth Partnership and Team
NEO. Learn more at www.JobsOhio.com.
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Matt Englehart, 614-300-1152