In Utica Shale news, the state’s biggest oil-producing area continues to see more growth, improving local unemployment numbers, increasing tax revenue, and upping the demand for more local hotels. Catch up on the latest Utica Shale news below.
Utica Shale News: Unemployment DropsThe Utica Shale is making money for oil and gas producers everywhere while also improving the lives and financial status of many families and individuals throughout the state of Ohio. Since drilling in the Utica Shale picked up, unemployment rates across the region have seen significant drops. The following is a breakdown of the decreases in several counties:
· Carroll County – In 2010, the unemployment rate was 12.7 percent. Today it’s at 7.6 percent.
· Jefferson County – Jefferson’s unemployment rate has dropped nearly 4 percent, from 13.4 percent in 2010 to 9.7 percent today.
· Belmont County – In 2010, Belmont’s unemployment rate was 9.7 percent. As of now, it’s at 7.8 percent.
· Guernsey County – In 2010, the unemployment rate was 12 percent. It has now dropped to 8 percent.
· Harrison County – The Harrison unemployment rate has dropped from 12 percent to 7.7 percent since 2010.
Some counties saw as much as a 5.1 percent decrease in unemployment in three years, and according to Mike Chadsey of the Ohio Oil & Gas Association, the Utica Shale has much to do with it. “Exploration and production today within the Utica shale play by Ohio’s oil and gas industry has lowered and continues to lower unemployment,” Chadsey said. “More families in Eastern Ohio are better off and more moms and dads have work thanks in large part to shale production either directly or indirectly.”
Utica Shale News: Sales Tax Revenue Rises – In addition to alleviating local unemployment, the Utica Shale exploration efforts have also led to an increase in sales tax revenues across multiple counties in Eastern Ohio, with the revenue jumping nearly 50 percent from $15.5 million to $22.9 million in two years. Below is a look at how the increases have affected each individual county:
· Carroll County – In 2011, Carroll County’s sales tax apportionment was $1.9 million, and at the time only 360 permits existed in the region’s Utica Shale prospects. One year later the development increased, and the county saw sales taxes jump to $2.5 million – a 32 percent increase in 12 months. In 2013, the county’s sales tax apportionment grew another 28 percent, increasing from $2.5 million to $3.2 million. In total, the county’s tax revenues grew by 70 percent over a two-year period.
· Belmont County – Between 2011 and 2012, Belmont County saw a 12 percent increase in sales tax revenues, going from $7.8 million to $8.7 million. By 2013, revenues had increased another 12 percent, totaling nearly $10 million annually.
· Guernsey County – Guernsey County has seen a two-fold benefit from Utica Shale exploration: from the exploration efforts themselves and from development in the neighboring counties where resources and goods aren’t as readily available. This has led to a significant increase in sales tax revenues over the last few years. In 2011, Guernsey sales taxes came in at $4 million. By the next year they had increased by 13 percent to $4.5 million, and in 2013 they increased another 18 percent, coming in at $5.4 million total.
· Harrison County – Harrison County has seen more sales tax growth than any other county in the region in recent years. Thanks largely to the natural gas processing projects by MarkWest and Utica East Ohio, the county has seen its revenues grow 220 percent in two years. In 2011 its apportionment was just under $1 million. In 2012, revenues jumped 24 percent, coming in at $1.2 million total, and one year later they rose another 158 percent, totaling $3.1 million for 2013.
· Noble County – In Noble County, sales tax revenues have risen 79 percent in two years. In 2011, the county received $726,000 in revenues. By 2012, those numbers had increased to nearly $900,000 – an 18 percent increase for the year – and in 2013, development continued and the county saw a 51 percent jump in revenues, coming in at $1.3 million by year-end.
These increased sales tax revenues allow counties to pour more resources into things like their local governments, roads, and public works projects, all of which may have not received sufficient funding without the Utica Shale’s growth and expansion.
Utica Shale News: New Hotels in DemandAs the Utica Shale continues to grow, so does the area. More than 40,000 jobs have been created, tax revenues have soared, and local businesses are much more in demand. One of the biggest areas of growth can be seen in the hotel industry; at least 10 new hotel projects are currently in one of the various stages of construction. Corporex Capital, a hotel developer, is building five of the area’s 10 ongoing projects, and according to Corporex vice president Nicholas J. Heekin, oil exploration has much to do with this. “Corporex has always taken an opportunistic, demand-focused approach to new developments,” Heekin states, “and we see no stronger demand generator than the energy exploration in this area, which is still in the very early stages.”
More Utica Shale News
If you want to catch up on more Utica Shale news, be sure to keep up with our blog, and if you want to learn more about the Utica Shale or inquire about your own exploration efforts or mineral rights, contact MAH Energy Law today.
Source: Bennett, Shawn. “Sales Tax Revenue Continues to Climb in Ohio’s Shale Country.” OOGA Bulletin 64.1 (2014): 20-21. Web. 17 Mar. 2014.
Carto, Anne. “Ohio Shale Counties See Drop in Unemployment.” OOGA Bulletin 64.1 (2014): 12. Web. 17 Mar. 2014.
Carto, Anne. “Ohio’s Shale Industry Creates Demand for New Hotels.” OOGA Bulletin 63.8 (2013): 13. Web. 17 Mar. 2014.