OUR THOUGHTS ON:

Ohio Shale First Quarter 2013 Economic Report

Energy & Resources

By Nick Lombardo

In December 2013, the Ohio Department of Job and Family Services (the Department) issued the first quarter 2013 Quarterly Economic Trends for Ohio Oil and Gas Industries. 

The report had a significant amount of data related to the jobs in the Ohio oil and gas industry as well as in Ohio as a whole.  Some of the more telling statistics and comparisons from the report are as follows:

  • The Department reported that employment in core industries such as well drilling and pipeline construction consisted of 8,192 jobs in the first quarter of 2013, the most recent quarter measured. That was up from 6,263 for the same period in 2011.  That is a slightly more than 30% increase over that two-year period.
  • The Department reported that employment in ancillary shale-related industries (such as freight trucking, environmental consulting, water construction, street construction, etc.) has also increased.  It rose to 161,043 jobs in the first quarter of 2013, the most recent quarter measured. That figure was up from 155,172 for the same period in 2011.  That is a slightly less than 4% increase over that two-year period.
  • From the first quarter of 2011 to the first quarter of 2013, the number of business establishments in the core industries grew by 19%, while establishments in ancillary industries declined by 0.1%.
  • The average wage of shale-related jobs in core industries and in ancillary industries from the second quarter of 2012 through the first quarter of 2013 was $74,382 and $59,154, respectively.  That is higher than the average across all industries in Ohio by $30,015 and $14,787, respectively.

Based on the information in the report, you can see why Department Director Cynthia Dungey is pleased with the growth.  She stated, “Ohio is fortunate to have this natural resource that can provide good jobs for families and reinvigorate many of our communities, especially those in the eastern part of the state.”

It should be noted that this report is only through the first quarter of 2013 and many more wells have been put into production and other infrastructure built since that time.  The industry continues to have a positive economic impact on Eastern Ohio and the region. 

Link to the full report is:  http://ohiolmi.com/OhioShale/Ohio%20Shale%20Report%20December%202013.pdf

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