Blog Post
HEAVY IRON NEWS
How Oil & Gas Has Thrived In Ohio
- By Design Team
- •
- 22 Mar, 2016
Though a significant number of North American companies may be pulling back on their oil and gas production, Ohio drillers are still going strong. In fact, a 96% increase in oil and gas jobs has been seen within the state of Ohio since 2011, with an average of 183,963 jobs being produced every year. So what makes the oil and gas industry so special and resilient? Why has it been able to survive when other states and countries have encountered difficulties? The answer lies both within Ohio's plentiful natural resources and the way that drilling has been approached and developed.
THE UNIQUE CASE OF OHIO'S SHALE GAS
Ohio entered into shale gas production at a later date from most North American drillers; this means that the businesses in the region are also likely to be the last to slow down. In fact, Ohio drillers may be able to ride out the downturn in oil and natural gas entirely, benefiting from market recovery after the worst is over. Ohio drillers were able to develop their drilling at a rate that they can support, which was not the case for some other drilling companies. Prior to the oil price crash, many oil and gas corporations expanded rapidly, to take advantage of the significant benefits of new hydraulic fracturing methods. Though this rapid expansion may have made sense at the time, it became problematic once OPEC increased the world's global supply of oil. Ohio has been able to be more cautious, creating steady gains without over-extending itself.
THE IMPROVED ECONOMY WITHIN OHIO
It wasn't just that shale gas companies in Ohio began developing at the right time; it's also that the local economy as a whole is highly supportive of the industry. The state of Ohio has seen significantly lowered unemployment rates since oil and gas drillers moved in, in addition to grossly improved tax revenue. This tax revenue has been used to build out infrastructure within Ohio and to draw more people into the cities surrounding the oil and gas developments. Entire areas of Ohio have been revitalized and improved through the presence of the oil and gas industry, and these areas have remained supportive of the oil and gas presence. This differs from other areas in which there may be environmentalist or regulatory concerns that make it more complex for oil and gas companies to thrive. In a time when oil and gas prices are decreasing, regulatory issues and compliance issues can cause significant problems.
Ohio is likely to continue gaining ground in the oil and gas industry. Not only are the oil and gas companies in Ohio exceptionally stable, but they also have tremendous amounts of local support. It's expected that both oil and gas prices should begin increasing shortly, and this could ultimately lead to companies in Ohio improving their profit margins even farther. Either way, other drilling companies may be able to learn from Ohio's strategy, which includes a significant investment in local commerce and slow but steady growth. For more information about the oil and gas industry, contact Heavy Iron Oilfield Services today.
Subscribe to Email Updates
Recent Post
| A new project in development in Oman may be able to revolutionize the way that people think about solar energy and oil and gas. The Miraah project currently being developed will use solar power in order to produce oil, thereby reducing the amount of natural gas Oman residences will need to rely upon. Ideally, the Miraah project will be able to address many of the outstanding issues with solar technology related to energy capture, while creating a more efficient and effective method of oil production. |
Xodus Group, an international group of energy consultants, has now completed the first stage of its multiphase flow research project
, and is now entering the second. Multiphase flow is designed to research, simulate, and predict how dynamic forces act within the piping that is commonly used throughout the oil and gas industry, for a better understanding of the technology's potential improvements.
Reports have revealed that two-thirds of the natural gas in the United States are now coming from fracking
, thanks to the extensive shale gas resources and the proliferation of unconventional drilling throughout the country. Natural gas is increasingly being used throughout the globe as a more environmentally-friendly alternative to goal, and the domestic energy markets are seeing a significant reduction in utility costs.
As the oil and gas industry has been hard at work decreasing its oil production costs, the oil transportation industry has been similarly engaged. The need for oil transportation on a national and global level has been increasing alongside the need for oil throughout the world. As oil production ramps up in the United States, the old oil transportation methods have become insufficient and inefficient for the new volume of materials that need to be moved. New technologies are presently being developed to make it easier and faster to transport oil, thereby reducing overhead for the industry as a whole.
The Gulf of Mexico has been steadily increasing its oil production despite concerns regarding plummeting oil prices. In fact, production has increased enough that the Gulf of Mexico is expected to reach a record high in 2017. Many oil production companies and unconventional drillers have increased production throughout the United States rather than slowing down. Despite this, oil and gas remains a big and booming business.
