Energy and Chemicals

Ohio: The Center of American Energy Transformation

Low-cost feedstock accessed through breakthrough technology, unrivaled proximity to markets and $74 billion in investment places Ohio among America’s new energy leaders

For years, the numbers were clear: The Gulf Coast was the place in North America for energy investment. Today, energy investors are recognizing the greater profitability potential of Ohio’s shale plays.

Ohio sits atop much of the Utica and Marcellus shale formations, the geological structures beneath Ohio, West Virginia and Pennsylvania that have accounted for 85 percent of U.S. shale gas production growth since the start of 2011. These shale plays contain large amounts of natural gas, natural gas liquids and crude oils. In fact, by 2030 they are expected to account for more than 40 percent of the nation’s natural gas production.

The only thing better than having the lowest natural gas prices in the developed world is having them in proximity to customers. Ohio gives you access to 60 percent of the U.S. and Canadian populations and 70 percent of polyethylene demand within a day's drive. Just as important as being close to market, Ohio is far removed from the damaging and costly effects of repeated storms and dramatic flooding.

Ohio’s access to plentiful and low-cost feedstocks, combined with its location near end markets, make the state a highly favorable option for midstream and downstream investments. In Ohio, producers can:

  • Take advantage of a rapidly growing energy industry that has attracted $74 billion in investments along the entire value chain, including upstream and midstream developments that have resulted in downstream expansion and new construction
  • Benefit from an efficient start-to-finish construction process, thanks to state law that requires the Ohio EPA to issue permits within 180 days and a highly trained construction workforce known for completing projects swiftly, within budget and with minimal lost time
  • Prosper in a vibrant market consisting of multi-modal transportation capabilities that provide national and global access; a growing business population seeking low-cost energy; and a deregulated power market offering unique and customized plans as well as a robust electrical grid

Many companies along the energy supply chain are located in Ohio, including Marathon, Columbia Gas of Ohio, DuPont, Encino Energy, PPG and Nutrien. The shale formations are adding to Ohio’s proven place as an energy leader, but Ohio’s energy leadership doesn’t stop there. The state is No. 1 in polymer and plastics output and the No. 1 consumer of polyolefin in the Midwest. Now, with one cracker under construction in the tri-state region and another in development, Ohio is fast becoming a new regional ethylene market.

In order to power the world, an environment with the right mix of resources is needed. Look no further than Ohio.

Team

Matt Cybulski
Matt Cybulski
Director

Study estimates Ohio Valley region will supply nearly half of nation’s natural gas and nearly a fifth of natural gas liquids by 2040. The IHS study for the first time quantifies the production trends and economic benefits likely to emerge from the Marcellus and Utica shale formations. The low cost of feedstock and close proximity to end user markets is expected to lead to a second petrochemical hub in the tri-state area of Ohio, Pennsylvania and West Virginia.

Ohio’s natural gas industry has been the biggest driver of energy growth in the United States for the last four years, largely due to the Utica and Marcellus shale deposits in eastern Ohio. Cleveland State University’s Maxine Goodman Levin College of Urban Affairs put together the Shale Investment Dashboard in Ohio. This information documents the growing impact of Ohio in the national natural gas industry.

OPSB Project Status

The Future for Natural Gas Production is in Ohio

Ohio’s Appalachian Region currently produces 30 percent of the country’s natural gas supply, a growth of 900 percent since 2010.

In this video, Wally Kandel, founder of Shale Crescent USA, shares with Bloomberg how, thanks to the Utica and Marcellus shale formations, the Shale Crescent will supply 37 percent of U.S. natural gas by 2040. Learn more about why major energy and petrochemical companies are investing in Ohio.

Pipeline Project Spurs Manufacturing Investment and Job Growth

Unique combination of infrastructure, collaboration and location lead to foreign direct investment on a national-profile project
March 25, 2019

JobsOhio’s strategic investment and crucial regulatory coordination and support for the construction of a much-needed pipeline result in early wins for economic development. The new supply of abundant, domestic energy helped the state compete and win the construction of a new manufacturing plant for high-purity nodular pig iron.

The Shale Crescent’s Time Has Come

The Shale Crescent’s Time Has Come

Midwest shale formations are rewriting the time-honored economics in the petrochemical industry.
Wally Kandel, board member, Shale Crescent USA, senior vice president and site manager, Solvay Specialty Polymers USA
February 1, 2019

The oil and gas finds in the Marcellus and Utica shale formations located underneath Ohio, Pennsylvania and West Virginia have forever changed the outlook for petrochemical investment in the United States. Going forward, companies would do well to give this region, Shale Crescent USA, a close look before determining where in the United States to commit capital.

Risberg Pipeline

Risberg Pipeline

Inadequate supply of natural gas around Ashtabula County had local leaders worried they were missing out on economic development opportunities. JobsOhio partnered with energy firm RH energytrans to spur the development of the Risberg pipeline and ease the energy restriction.

Ohio’s Energy Investments Positively Impact Communities

Ohio’s Energy Investments Positively Impact Communities

Energy projects have a positive ripple effect
Dana Saucier, senior managing director, JobsOhio
May 7, 2018

Ohio’s energy sector is growing mostly due to large deposits of shale. This brings about more investments from new companies. These investments not only have a direct impact on the companies and their employees, but also indirectly on jobs during construction as well as the economy of the local community. They also bring about potential new opportunities for further business investments.

Spray Products Acquires New Facility with Revitalization Support

Spray Products Acquires New Facility with Revitalization Support

Revitalized site meets expansion needs of rapidly growing company
May 7, 2018

Spray Products Corp. has acquired a facility in Medina to accommodate its rapid expansion. Local, regional and state partners came together to support the revitalization of a vacant Valspar spray facility, which is an ideal fit for Spray Products’ production needs.