News & Press
Ohio’s Shale Energy Industry Attracts $3.1 Billion in Direct Investment in Second Half of 2023 with Cumulative Investment Reaching $108.2 Billion
(COLUMBUS, Ohio) – According to a Cleveland State University (CSU) study, total investment in Ohio’s shale energy sector was approximately $3.1 billion in the second half of 2023. The latest report, prepared for JobsOhio, Ohio’s private non-profit economic development corporation, covers shale-related investment in Ohio from July 2023 through December 2023 and cumulates total investment from 2011 forward.
The study from CSU’s Energy Policy Center at the Maxine Goodman Levin School of Urban Affairs revealed that with previous investments to date, cumulative oil and gas investment in Ohio through December 2023 is estimated to be around $108.2 billion. Of this, $76.7 billion has been in upstream, $22 billion in midstream, and $9.5 billion in downstream industries. The study showed that cumulative shale-related investment steadily rose between 2011 and 2023.
As the spread between oil and natural gas prices has increased, finding and development (F&D) costs for oil have been falling, driven by innovations that improve the operational efficiency of production from shale wells. The study suggests that the application of artificial intelligence (AI) to upstream operations could drive additional improvements.
“As natural gas exploration technology continues to evolve, Ohio’s abundance of resources can play an essential role in supporting economic growth in industries like advanced manufacturing, healthcare, polymers, construction, aviation, and automotive,” said JobsOhio President and CEO J.P. Nauseef. “Since 2011, the shale-related investment in Ohio’s energy economy has steadily increased to $108.2 billion as industry experts and investors look to the state for growth.”
“Total shale-related investment was up $1 billion in the second half of 2023 compared to the first half of the year, due largely to construction starting on a major natural gas power plant,” said Mark Henning, Research Supervisor for the Energy Policy Center in the Maxine Goodman Levin School or Urban Affairs at CSU. “This level of overall investment will likely continue as upstream producers continue to ramp up activities in the region’s oil window, where we have seen new well development more than double during the first half of 2024 compared to the second half of last year.”
Upstream Investment
Overall, upstream investments were down by about $332 million in the second half of 2023 compared to the first half of the year, reflecting a decline in the number of new wells drilled. Oil prices have remained high relative to natural gas prices, sustaining an average oil-to-price ratio of 6:1 since the beginning of 2023.
Midstream Investment
Midstream investment reached $290.4 million in the second half of 2023; a 69% increase compared to the previous six-month period. Most of the midstream investment during the Study period was for gathering system and transportation buildout, with $166.9 million spent on gathering lines and $91.9 million spent on compression. An additional $31.5 million was spent on NGL pipelines.
Downstream Investment
Since 2015, the CSU studies have reported that 10 natural gas-powered power plants have been in the planning, construction, or newly operational stages. Seven of these plants consumed 13% of Ohio Utica gas production for power generation during the second half of 2023 and generated the equivalent of approximately 35% of the electricity consumed in Ohio across all sectors during the same time period.
This is the sixteenth CSU study reporting investment resulting from oil and gas development in Ohio related to the Utica and Point Pleasant formations. The latest report and previous reports can be found here. For more information on Ohio’s growing energy industry, visit www.JobsOhio.com/energy.
About the Maxine Goodman Levin School of Urban Affairs
The Maxine Goodman Levin School of Urban Affairs at Cleveland State University is recognized as one of the best public affairs schools in the nation by U.S. News & World Report. The Levin School is ranked 4th in the US in the specialty of Urban Policy and 12th in the specialty of Local Government Management.
Levin offers undergraduate, graduate, and professional development programs in fields that guide and advance vibrant and sustainable communities, including urban studies, public administration, urban planning, environmental studies, nonprofit management, and organizational leadership. The Levin School’s collection of scholars combines practical experience with research and theory, delivering excellence in teaching to prepare the next generation of community leaders.
Founded in 1964, Cleveland State University is a public research institution with more than 14,000 students, 8 colleges and schools and more than 175 academic programs. According to the Brookings Institution, CSU is No. 18 in the U.S. among public universities that fulfill a critical dual mission: providing upward mobility and conducting impactful research. CSU is the only Ohio university in the top tier of the Brookings list. U.S. News & World Report consistently lists CSU among America’s Best Colleges and Universities.
About JobsOhio
JobsOhio, Ohio's private nonprofit economic development corporation, enhances company growth and personnel development through business attraction, retention, and expansion across ten competitive industry sectors. With a team of seasoned professionals, JobsOhio utilizes a comprehensive network to foster talent production in targeted industries and attract talent through Find Your Ohio. Collaborating with seven regional partners, including Dayton Development Coalition, Lake to River Economic Development, Ohio Southeast Economic Development, One Columbus, REDI Cincinnati, Regional Growth Partnership, and Team NEO, JobsOhio delivers world-class customer service to provide companies with a competitive advantage. Learn more at www.jobsohio.com . Follow us on LinkedIn, Twitter and Facebook.
For more information, contact:
Matt Englehart