The study found that development of the Utica Shale in Ohio will lead to major investment and job growth. It projects that by 2014, annual oil and gas production from the Utica Shale will be worth $9.6 billion and support 65,680 jobs. This will generate $4.9 billion in total value added to the state economy and $3.3 billion in labor income. The development will also significantly increase tax revenues for state and local governments.

2. STUDY FORECASTS
MAJOR INVESTMENT,
GROWTH IN JOBS

4. THE STUDY
The Ohio Shale Coalition sponsored a research study
focused on the economic impact and opportunities
associated with the development of oil and gas
resources in the Utica Shale. The study was conducted
by researchers at Cleveland State University, The Ohio
State University and Marietta College.

5. THE STUDY
The Ohio Shale Coalition sponsored a research study
focused on the economic impact and opportunities
associated with the development of oil and gas
resources in the Utica Shale. The study was conducted
by researchers at Cleveland State University, The Ohio
State University and Marietta College.
The technologies that have enabled the development of
the Utica Shale - horizontal drilling and improved
hydraulic fracturing - will require considerable
investment by companies in Ohio. There are four major
areas of investment that the Study Team reviewed for
this report:

6. THE STUDY
The Ohio Shale Coalition sponsored a research study
focused on the economic impact and opportunities
associated with the development of oil and gas
resources in the Utica Shale. The study was conducted
by researchers at Cleveland State University, The Ohio
State University and Marietta College.
The technologies that have enabled the development of
the Utica Shale - horizontal drilling and improved
hydraulic fracturing - will require considerable
investment by companies in Ohio. There are four major
areas of investment that the Study Team reviewed for
this report:
- Leasing, Royalties, and Right-of-Way Payments
- Road Construction
- Drilling and Completion of Wells
- Midstream Infrastructure
The Study Team projects the annual production of oil and gas from the Utica Shale will grow to $9.6 billion in
2014, when the total value added will amount to $4.9 billion. Utica Shale development will also support 65,680
jobs and generate an additional $3.3 billion in labor income in 2014.
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7. THE
FINDINGS
2011 2012 2013 2014
VALUE ADDED $162,030,036 $878,982,133 $2,980,378,198 $4,857,632,095
EMPLOYMENT 2,275 12,150 40,606 65,680
LABOR INCOME $99,758,497 $571,543,463 $1,994,216,405 $3,298,757,195
OUTPUT $291,574,770 $1,667,574,417 $5,823,268,396 $9,642,544,988
TOTAL STATE & LOCAL TAXES $16,522,865 $73,422,148 $271,539,607 $433,528,922
income to be significantly above this level. impacted by shale de
Expected average earnings are highest in the
ted to grow during professional services sector, following by those Ohio on natural gas a
due to increased oil directly involved in developing the resources. rates are $0.10/bbl an
ue to expansion in With the growth of local service industries recovery fee of $0.10/
y. For example, supplying to oil and gas producers, the number OUTPUT
itectural and engi- of workers supported by the Utica Shale devel- value”) are property t
on, improved earn- opment is expected to grow rapidly. Output is the economic development number of hydrocarbon reserv
e variety of local most policy makers look to for guidance as to taxes are assessed by
ng for example more By 2014, the economic impact of development the economic impact of a particular industry. It the tax revenue is pai
ealthcare. will create or support at least 65,680 jobs. The is calculated by adding the direct effects of district political subdi
majority of the increase in employment will expenditures, indirect expenditures from subse- gas property is locate
pact totaled $162 come from oil and gas service companies, with quent business, and induced effects, which is benefit the counties in
ntributors being employment doubling between 2013-2014. The basically household spending. shale development ac

8. THE
FINDINGS
2011 2012 2013 2014
VALUE ADDED $162,030,036 $878,982,133 $2,980,378,198 $4,857,632,095
EMPLOYMENT 2,275 12,150 40,606 65,680
LABOR INCOME $99,758,497 $571,543,463 $1,994,216,405 $3,298,757,195
OUTPUT $291,574,770 $1,667,574,417 $5,823,268,396 $9,642,544,988
TOTAL STATE & LOCAL TAXES $16,522,865 $73,422,148 $271,539,607 $433,528,922
income to be significantly above this level. impacted by shale de
Expected average earnings are highest in the
ted to grow during professional services sector, following by those Ohio on natural gas a
due to increased oil directly involved in developing the resources. rates are $0.10/bbl an
ue to expansion in With the growth of local service industries recovery fee of $0.10/
y. For example, supplying to oil and gas producers, the number OUTPUT
itectural and engi- of workers supported by the Utica Shale devel- value”) are property t
on, improved earn- opment is expected to grow rapidly. Output is the economic development number of hydrocarbon reserv
e variety of local most policy makers look to for guidance as to taxes are assessed by
ng for example more By 2014, the economic impact of development the economic impact of a particular industry. It the tax revenue is pai
ealthcare. will create or support at least 65,680 jobs. The is calculated by adding the direct effects of district political subdi
majority of the increase in employment will expenditures, indirect expenditures from subse- gas property is locate
pact totaled $162
Ohio Shale come from oil and gas service companies, with quent business, and induced effects, which is benefit the counties in
ntributors being employment doubling between 2013-2014. The3 ofbasically household spending.
9 www.ohshalecoalition.com
shale development ac
Coalition

10. VALUE ADDED EMPLOYMENT
Total value added is expected Development of the Utica Shale
to grow during the next three will trigger job growth in four
years in part due to increased general areas:
oil and gas drilling and also
due to expansion in other
parts of the economy. For
example, demand will go up
for architectural and
engineering services. In
addition, improved earnings
will be spent on a wide variety
of local goods and services,
including for example more
retail, entertainment, and
healthcare.
In 2011, the value added
impact totaled $162 million,
with the biggest contributors
being leases and right-of-way
payments to land owners. By
2014, value added impact will
grow to $4.9 billion, and
more than 75% of the value
added impact will come from

11. VALUE ADDED EMPLOYMENT
Total value added is expected Development of the Utica Shale
to grow during the next three will trigger job growth in four
years in part due to increased general areas:
oil and gas drilling and also
due to expansion in other • Field Development and Supply
Chain,
parts of the economy. For
example, demand will go up
for architectural and
engineering services. In
addition, improved earnings
will be spent on a wide variety
of local goods and services,
including for example more
retail, entertainment, and
healthcare.
In 2011, the value added
impact totaled $162 million,
with the biggest contributors
being leases and right-of-way
payments to land owners. By
2014, value added impact will
grow to $4.9 billion, and
more than 75% of the value
added impact will come from

12. VALUE ADDED EMPLOYMENT
Total value added is expected Development of the Utica Shale
to grow during the next three will trigger job growth in four
years in part due to increased general areas:
oil and gas drilling and also
due to expansion in other • Field Development and Supply
Chain,
parts of the economy. For • Mixed Sources of Demand
example, demand will go up
for architectural and
engineering services. In
addition, improved earnings
will be spent on a wide variety
of local goods and services,
including for example more
retail, entertainment, and
healthcare.
In 2011, the value added
impact totaled $162 million,
with the biggest contributors
being leases and right-of-way
payments to land owners. By
2014, value added impact will
grow to $4.9 billion, and
more than 75% of the value
added impact will come from

13. VALUE ADDED EMPLOYMENT
Total value added is expected Development of the Utica Shale
to grow during the next three will trigger job growth in four
years in part due to increased general areas:
oil and gas drilling and also
due to expansion in other • Field Development and Supply
Chain,
parts of the economy. For • Mixed Sources of Demand
example, demand will go up • Professional Services
for architectural and
engineering services. In
addition, improved earnings
will be spent on a wide variety
of local goods and services,
including for example more
retail, entertainment, and
healthcare.
In 2011, the value added
impact totaled $162 million,
with the biggest contributors
being leases and right-of-way
payments to land owners. By
2014, value added impact will
grow to $4.9 billion, and
more than 75% of the value
added impact will come from

14. VALUE ADDED EMPLOYMENT
Total value added is expected Development of the Utica Shale
to grow during the next three will trigger job growth in four
years in part due to increased general areas:
oil and gas drilling and also
due to expansion in other • Field Development and Supply
Chain,
parts of the economy. For • Mixed Sources of Demand
example, demand will go up • Professional Services
for architectural and • Personal Services
engineering services. In
addition, improved earnings
will be spent on a wide variety
of local goods and services,
including for example more
retail, entertainment, and
healthcare.
In 2011, the value added
impact totaled $162 million,
with the biggest contributors
being leases and right-of-way
payments to land owners. By
2014, value added impact will
grow to $4.9 billion, and
more than 75% of the value
added impact will come from

15. VALUE ADDED EMPLOYMENT
Total value added is expected Development of the Utica Shale
to grow during the next three will trigger job growth in four
years in part due to increased general areas:
oil and gas drilling and also
due to expansion in other • Field Development and Supply
Chain,
parts of the economy. For • Mixed Sources of Demand
example, demand will go up • Professional Services
for architectural and • Personal Services
engineering services. In With the growth of local service
addition, improved earnings industries supplying to oil and
will be spent on a wide variety gas producers, the number of
of local goods and services, workers supported by the Utica
including for example more Shale development is expected to
retail, entertainment, and grow rapidly.
healthcare.
In 2011, the value added
impact totaled $162 million,
with the biggest contributors
being leases and right-of-way
payments to land owners. By
2014, value added impact will
grow to $4.9 billion, and
more than 75% of the value
added impact will come from

16. VALUE ADDED EMPLOYMENT LABOR
Total value added is expected Development of the Utica Shale INCOME
to grow during the next three will trigger job growth in four
years in part due to increased general areas: Based on employment
oil and gas drilling and also projections, wages and
due to expansion in other • Field Development and Supply
Chain, benefits for workers will grow
parts of the economy. For • Mixed Sources of Demand to $3.3 billion in 2014, with
example, demand will go up • Professional Services an average income of more
for architectural and • Personal Services than $50,000 a year per job.
engineering services. In With the growth of local service In the majority of growing
addition, improved earnings industries supplying to oil and industries we expect the
will be spent on a wide variety gas producers, the number of average income to be
of local goods and services, workers supported by the Utica significantly above this level.
including for example more Shale development is expected to Expected average earnings are
retail, entertainment, and grow rapidly. highest in the professional
healthcare. services sector, following by
By 2014, the economic impact of those directly involved in
In 2011, the value added development will create or developing the resources.
impact totaled $162 million, support at least 65,680 jobs. The
with the biggest contributors majority of the increase in
being leases and right-of-way employment will come from oil
payments to land owners. By and gas service companies, with
2014, value added impact will employment doubling between
grow to $4.9 billion, and 2013-2014. The personal service
more than 75% of the value sector will also grow significantly,
added impact will come from with over 16,000 jobs created or
supported in 2014. This number
is a great indicator of the broad
effect the development of the
Utica Shale will have on the entire
economy.
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17. STATE AND LOCAL TAXES

18. OUTPUT STATE AND LOCAL TAXES
Output is the economic The growth in sales and
development number most employment as a result of the
policy makers look to for Utica Shale development will lead
guidance as to the economic to increases in the amount of
impact of a particular state and local taxes.
industry. It is calculated by
adding the direct effects of There are two forms of taxes that
expenditures, indirect are directly impacted by shale
expenditures from subsequent development:
business, and induced effects,
which is basically household
spending.
The Study Team expect
outputs to total nearly $10
billion dollars per year by
2014 and those numbers will
likely continue in this range in
the years beyond the study.

19. OUTPUT STATE AND LOCAL TAXES
Output is the economic The growth in sales and
development number most employment as a result of the
policy makers look to for Utica Shale development will lead
guidance as to the economic to increases in the amount of
impact of a particular state and local taxes.
industry. It is calculated by
adding the direct effects of There are two forms of taxes that
expenditures, indirect are directly impacted by shale
expenditures from subsequent development:
business, and induced effects,
which is basically household • Severance Taxes - imposed by
the State of Ohio on natural gas
spending.
and oil production. Current rates
The Study Team expect are $0.10/bbl and $0.025/mcf
outputs to total nearly $10 with a cost recovery fee of $0.10/
billion dollars per year by bbl and $0.005/mcf.
2014 and those numbers will
likely continue in this range in
the years beyond the study.

20. OUTPUT STATE AND LOCAL TAXES
Output is the economic The growth in sales and Companies that have already
development number most employment as a result of the seen an increase in demand for
policy makers look to for Utica Shale development will lead their products and services and
guidance as to the economic to increases in the amount of land owners who have received
impact of a particular state and local taxes. lease bonus and royalty payments
industry. It is calculated by combined to contribute an
adding the direct effects of There are two forms of taxes that additional $16.6 million in taxes
expenditures, indirect are directly impacted by shale in 2011.
expenditures from subsequent development:
business, and induced effects, It is projected that, by 2014,
which is basically household • Severance Taxes - imposed by additional state and local income
the State of Ohio on natural gas taxes collected as a result of the
spending.
and oil production. Current rates Utica Shale development will total
The Study Team expect are $0.10/bbl and $0.025/mcf $433.5 million.
outputs to total nearly $10 with a cost recovery fee of $0.10/
billion dollars per year by bbl and $0.005/mcf.
2014 and those numbers will
likely continue in this range in • Ad Valorem Taxes - (meaning
“based on value”) are property
the years beyond the study.
taxes based on the value of
hydrocarbon reserves in the
ground. These taxes are assessed
by the county auditor and the tax
revenue is paid to the county
taxing district political
subdivision where the oil and gas
property is located. This tax will
primarily benefit the counties in
eastern Ohio where shale
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21. $50,000 a year per job. In the majority of
numbers will likely continue in this this range in the landgrowing whowho have received lease bonus
numbers will likely continue in are directly
There are two forms of taxes thatrange in the land owners have received lease bonus
owners industries we expect the average
years beyond the study.
years beyond the study. and and royalty payments combined to contribute
royalty payments combined to contribute
an additional $16.6 million in taxes in 2011.
an additional $16.6 million in taxes in 2011.
BY 2014:
STATE AND LOCAL TAXES
STATE AND LOCAL TAXES
Professional Services
Field Development & Supply Chain It isMixed Sourcesthat, by 2014, additional state
It is projected of Demand
projected Services
Personal that, by 2014, additional state
d The The growth in sales and employment as a result
growth in sales and employment as a result and(real estate, insurance, employmentas a result of
and local income taxes repair,as a result of etc.)
local income taxesauto collected services,
(engineering, development will leadlead
legal, business support,to
of the Utica Shale development will
in of the Utica Shale etc.)
(construction, transport, distribution, etc.) to (retail, healthcare, collected etc.)
28,153 the amount of state and and local taxes. 6,279 Jobs development totaltotal $433.5
5,712 Jobs
increases in the amount of state local taxes.
increases in
the Utica Shale development will will $433.5
the Utica Shale
16,066 Jobs
$69,177 Avg. Income
$59,451 Avg. Income million. Avg. Income
million.
$38,414 Avg. Income
$36,018
There are two two forms of taxes that directly
There are forms of taxes that are are directly
Professional Services
Professional Services Personal Services
Personal Services
) (engineering, legal, business support, etc.)etc.)
(engineering, legal, business support, (retail, healthcare, autoauto repair, etc.)
(retail, healthcare, repair, etc.)
5,712 Jobs
5,712 Jobs 16,066 Jobs
16,066 Jobs
$69,177 Avg. Income
$69,177 Avg. Income $36,018 Avg. Income
$36,018 Avg. Income

22. $50,000 a year per job. In the majority of
numbers will likely continue in this this range in the landgrowing whowho have received lease bonus
numbers will likely continue in are directly
There are two forms of taxes thatrange in the land owners have received lease bonus
owners industries we expect the average
years beyond the study.
years beyond the study. and and royalty payments combined to contribute
royalty payments combined to contribute
an additional $16.6 million in taxes in 2011.
an additional $16.6 million in taxes in 2011.
BY 2014: COLUMNS BULLET LIST + IMAGE
STATE AND LOCAL TAXES
STATE AND LOCAL TAXES
2
Professional Services
Field Development & Supply Chain It isMixed Sourcesthat, by 2014, additional state
It is projected of Demand
projected Services
Personal that, by 2014, additional state
d The The growth in sales and employment as a result
growth in sales and employment as a result and(real estate, insurance, employmentas a result of
and local income taxes repair,as a result of etc.)
local income taxesauto collected services,
(engineering, development will leadlead
legal, business support,to
of the Utica Shale development will
in of the Utica Shale etc.)
(construction, transport, distribution, etc.) to (retail, healthcare, collected etc.)
28,153 the amount of state and and local taxes. 6,279 Jobs development totaltotal $433.5
5,712 Jobs
increases in the amount of state local taxes.
increases in
the Utica Shale development will will $433.5
the Utica Shale
16,066 Jobs
$69,177 Avg. Income
$59,451 Avg. Income million. Avg. Income
million.
$38,414 Avg. Income
$36,018
There are two two forms of taxes that directly
There are forms of taxes that are are directly
Professional Services
Professional Services Personal Services
Personal Services
) (engineering, legal, business support, etc.)etc.)
(engineering, legal, business support, (retail, healthcare, autoauto repair, etc.)
(retail, healthcare, repair, etc.)
5,712 Jobs
5,712 Jobs 16,066 Jobs
16,066 Jobs
$69,177 Avg. Income
$69,177 Avg. Income $36,018 Avg. Income
$36,018 Avg. Income
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24. ABOUT THE STUDY
The Study Team used very conservative projections for all
variables used in the economic development model. Industry
experts and company representatives who were interviewed
by the Study Team gave a range of estimates from very
modest to very optimistic. The Study Team opted for
averages and omitted some possible economic benefits,
such as projections on future spending and engagement of
Ohio businesses in future Utica Shale development.
Additionally, the Study Team did not include the
“downstream” benefits of Utica Shale development in the
study. “Downstream” impact can be described as the benefit
to Ohio as a whole from the oil and gas industry operating in
consume oil and gas in their operations, such as oil refining, fertilizer production, and the chemical and
polymer sector.
It should be noted that Ohio’s shale industry is in its early stages and new data is gathered every day. As
more information becomes available, the public will get a more accurate picture of the economic impact
of the development of the Utica Shale. It is also important to point out this study only projects to 2014,
and the Study Team expects the industry to continue to be growing in Ohio. It is likely that the economic
impact of the Utica Shale development in Ohio will still be growing beyond the end date of this study.
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26. ABOUT THE OHIO SHALE COALITION
STUDY TEAM

27. ABOUT THE OHIO SHALE COALITION
STUDY TEAM
Dr. Andrew R. Thomas
Executive in Residence,
Energy Policy Center
Maxine Goodman Levin College of Urban Affairs
Cleveland State University

28. ABOUT THE OHIO SHALE COALITION
STUDY TEAM
Dr. Andrew R. Thomas
Executive in Residence,
Energy Policy Center
Maxine Goodman Levin College of Urban Affairs
Cleveland State University
Dr. Iryna Lendel
Assistant Director, Center for Economic Development
Maxine Goodman Levin College of Urban Affairs
Cleveland State University

29. ABOUT THE OHIO SHALE COALITION
STUDY TEAM
Dr. Andrew R. Thomas
Executive in Residence,
Energy Policy Center
Maxine Goodman Levin College of Urban Affairs
Cleveland State University
Dr. Iryna Lendel
Assistant Director, Center for Economic Development
Maxine Goodman Levin College of Urban Affairs
Cleveland State University
Dr. Robert Chase
Chair and Benedum Professor,
Department of Petroleum Engineering and Geology
Marietta College

30. ABOUT THE OHIO SHALE COALITION
STUDY TEAM
Dr. Andrew R. Thomas
Executive in Residence,
Energy Policy Center
Maxine Goodman Levin College of Urban Affairs
Cleveland State University
Dr. Iryna Lendel
Assistant Director, Center for Economic Development
Maxine Goodman Levin College of Urban Affairs
Cleveland State University
Dr. Robert Chase
Chair and Benedum Professor,
Department of Petroleum Engineering and Geology
Marietta College
Dr. Douglas Southgate
Co-Director, Subsurface Energy Resource Center
Professor, Department of Agricultural, Environmental,
and Development Economics
The Ohio State University

31. ABOUT THE OHIO SHALE COALITION
STUDY TEAM The Ohio Shale Coalition is a broad-based,
statewide partnership for affordable
Dr. Andrew R. Thomas
Executive in Residence, energy and jobs. Its membership includes
Energy Policy Center local chambers of commerce, businesses,
Maxine Goodman Levin College of Urban Affairs
Cleveland State University development organizations and individuals
Dr. Iryna Lendel who seek to maximize the jobs and
Assistant Director, Center for Economic Development economic potential of shale gas and
Maxine Goodman Levin College of Urban Affairs
Cleveland State University affordable energy production in Ohio.
Dr. Robert Chase
Chair and Benedum Professor,
Department of Petroleum Engineering and Geology
Marietta College
Dr. Douglas Southgate
Co-Director, Subsurface Energy Resource Center
Professor, Department of Agricultural, Environmental,
and Development Economics
The Ohio State University
Dr. Edward W. Hill
Dean, Maxine Goodman Levin College of Urban Affairs
Cleveland State University
Ohio Shale
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32. ABOUT THE OHIO SHALE COALITION
STUDY TEAM The Ohio Shale Coalition is a broad-based,
statewide partnership for affordable
Dr. Andrew R. Thomas
Executive in Residence, energy and jobs. Its membership includes
Energy Policy Center local chambers of commerce, businesses,
Maxine Goodman Levin College of Urban Affairs
Cleveland State University development organizations and individuals
Dr. Iryna Lendel who seek to maximize the jobs and
Assistant Director, Center for Economic Development economic potential of shale gas and
Maxine Goodman Levin College of Urban Affairs
Cleveland State University affordable energy production in Ohio.
Dr. Robert Chase The major focus of the Ohio Shale Coalition
Chair and Benedum Professor,
is on the potential of shale energy to drive
Department of Petroleum Engineering and Geology
Marietta College economic development and job growth in
Dr. Douglas Southgate every corner of Ohio. From land payments
Co-Director, Subsurface Energy Resource Center and pipelines to the entire supply chain
Professor, Department of Agricultural, Environmental,
and Development Economics and supporting infrastructure, the
The Ohio State University opportunity to create thousands of jobs for
Dr. Edward W. Hill Ohio- ans and achieve prosperity for our
Dean, Maxine Goodman Levin College of Urban Affairs
Cleveland State University state is tremendous. At the same time, the
Ohio Shale Coalition supports sound
government policies that promote
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34. THANK
YOU