Pages

Wednesday, September 21, 2011

Utica Shale -- Ohio -- The Bakken -- Lessons Learned

Link here (these links break early and eventually require subscription).
The Utica projections focus on five specific economic elements — jobs, personal income, royalties, tax revenues and gross state product (GSP) — from 2011 until 2015. According to the study, Ohio’s natural gas and crude oil industry could help create and support more than 200,000 Ohio-based jobs from the leasing, royalties, exploration, drilling, production and pipeline construction activities for the Utica shale reserve. The state could experience an overall wage and personal-income boost of $12 billion by 2015 from industry spending.

The study also projects royalty payments to landowners, schools, businesses and communities could increase to as much as $1.6 billion by 2015 — a number that exceeds the total amount of royalties distributed by Ohio’s natural gas and crude oil industry in the last decade.

Total tax revenue from oil and gas exploration and development in the Utica shale formation from 2011 until 2015, including severance, commercial activity, ad valorem (property), federal, state and local taxes, is projected to be approximately $479 billion. Industry expenditures related to Utica shale development could generate approximately $12.3 billion in gross state product and result in a statewide output or sales of more than $23 billion.
These numbers surprised me:
In 2010, the natural gas and crude oil industry paid $32.7 million in taxes, including severance, commercial activity, ad valorem (property), federal, state and local taxes, and generated $988 million in gross state product and statewide output or sales of $1.7 billion. The industry also reinvested approximately $238 million for oil and gas exploration and development in Ohio.

Currently, there are more than 64,000 active wells throughout 49 counties in Ohio. To date, more than 274,000 wells have been drilled in 76 of the state’s 88 counties. Ohio remains a leader in total number of wells drilled, which is surpassed only by Pennsylvania, Oklahoma and Texas.

Since 1860, Ohio’s natural gas and crude oil industry as produced more than 8 trillion cubic feet of natural gas and more than 1 billion barrels of crude oil.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.