Study Finds Cumulative $97.8 Billion of Shale Investment in Ohio Through 2021, Second half of 2021 brings in $2.5 billion in investment

COLUMBUS, Ohio, Dec. 16, 2022 /PRNewswire/ -- Total investment in Ohio's resource-rich shale energy sector was approximately $2.5 billion in the second half of 2021, according to a Cleveland State University (CSU) study. Prepared for JobsOhio, the latest report covers shale investment from July 2021 through December 2021. With the latest report, it brings the total sector investment to nearly $100 billion in the state of Ohio since 2011.

The study found that during the second half of 2021, overall upstream investments were down compared to the year's first half; midstream investment began to recover from a COVID-related downturn, and downstream investments saw major equipment installations. Of the $97.8 billion cumulative investment, $68.1 billion has been in upstream, $21.4 billion in midstream, and $8.3 billion in downstream industries.

"The cumulative investment in shale gas development over time has brought thousands of jobs to hard-working Ohioans and affordable energy to residential and industrial consumers," said J.P. Nauseef, JobsOhio president and CEO. "Ohio has the resources, the regulatory environment, the talent, and the central location to continue to evolve as an international player in shale-related productivity."

"Investment, especially in drilling, continues unabated, notwithstanding supply chain and other difficulties in the second half of 2021," said Andrew R. Thomas, Director of the Energy Policy Center in the Maxine Goodman Levin College of Urban Affairs of CSU. "This ongoing investment is critical to affordable and reliable domestic energy and manufacturing, which is more important now than ever given the current geopolitical issues in Europe and Asia."

Upstream Investment
Overall upstream investments were down by about $78 million in the second half of 2021, reflecting continued improving cost efficiencies for drilling. 86 new wells were drilled during the third and fourth quarters of 2021, up by 12 from first and second quarters of the year, and the total volume of gas-equivalent shale production in the second half of 2021 was 2 percent greater than overall production in the first half of 2021. Jefferson County had the highest number of new wells with 23, followed by Belmont, Carroll and Columbiana Counties.

Midstream Investment
The $74.3 million spent on gathering lines and compression in the second half of 2021 represented a 73 percent increase in gathering system buildout compared to the year's first half and helped spur a recovery in midstream investment following a pandemic-related downturn. An additional $243 million in midstream investment was actively underway as of November 2022.

Downstream Investment

During the second half of 2021, downstream investment saw major equipment installation for the combined heat and power (CHP) plant at Ohio State University's main campus. The 105.5 MW facility represents a $289.9 million investment. Natural gas-based power generation is expected to receive $1.2 billion in future investments for the Trumbull Energy Center, for which financing was secured in late 2022.

This is the twelfth CSU study reporting investment resulting from oil and gas development in Ohio related to the Utica and Point Pleasant formations. The latest report and previous reports can be found here. For more information on Ohio's growing energy industry, visit www.JobsOhio.com/energy.

About JobsOhio

JobsOhio is a private nonprofit economic development corporation designed to drive job creation and new capital investment in Ohio through business attraction, retention and expansion. The organization also works to seed talent production in its targeted industries and to attract talent to Ohio though Find Your Ohio. JobsOhio works with six regional partners across Ohio: Dayton Development Coalition, Ohio Southeast, One Columbus, REDI Cincinnati, Regional Growth Partnership, and Team NEO. Learn more at www.jobsohio.com. Follow us on LinkedIn, Twitter, and Facebook.

About the Maxine Goodman Levin College of Urban Affairs

The Maxine Goodman Levin College of Urban Affairs at Cleveland State University offers undergraduate, graduate, and doctoral degrees in fields that guide and advance vibrant and sustainable communities, including urban studies, public administration, urban planning, environmental studies, nonprofit management, and organizational leadership. Levin is recognized as one of the best public affairs schools in the nation according to U.S. News & World Report. Levin is ranked 3rd in the US in the specialty of Urban Planning and Policy, 7th in the specialty of Local Government Management, and maintains a strong standing in the specialty of Nonprofit Management.

Founded in 1964, Cleveland State University is a public research institution with nearly 16,000 students, 10 colleges and schools and more than 175 academic programs. CSU recently was ranked No. 1 in the nation for increases in research expenditures, according to the National Science Foundation and was again chosen for 2019 as one of America's best universities by U.S. News & World Report.

SOURCE JobsOhio