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.
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