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Ohio


Cleveland State study shows economic bump in shale drilling counties
Sales tax shows a rise though employment lags
Story by MICHELLE KANU


 
In The Region:
A new study from Cleveland State University today shows shale drilling has provided an economic boost for counties around Ohio this year. From member station WCPN in Cleveland, Michelle Kanu has details.
Cleveland State study shows economic bump in shale drilling counties

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The 15 eastern Ohio counties with the highest number of shale gas wells saw a 14 percent increase in sales activity for the first quarter of 2013 compared to the same time period last year.

The finding is consistent with a Cleveland State study from earlier this year. Ned Hill is the dean of the university's College of Urban Affairs. He attributes the continued boos t— in part — to more drilling-related businesses performing well in the area.

“You’re also seeing the wealth effect of people who are taking their rent and royalty checks and spending it in the economy,” he says. “And you’re also seeing in a very big way local purchases of vehicles and trucks to go and work in the field. It does show that there’s real economic activity underway.”

But Hill says the increased sales activity isn’t translating into a big spike in jobs just yet because, “we’re still in the very early stages in the development of the resource.”

And he adds that the drillers have largely relied on workers from other states who have more experience in the industry. Hill anticipates an employment boost will come as more companies focus on building the pipelines needed to carry the oil and gas from the wells to the market in the coming months.
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