Guest Column from State Representative Jim Buchy: “Black-Gold” Rush Set To Begin in Days

A major part of Ohio’s history is the oil boom of the 1800s, but that “black-gold” eventually dried up. The shale this state sits on still contains oil and natural gas, and new technology will allow us to harvest this natural resource. What does this mean for Ohio? It means jobs, improvements to our state parks, new wealth in the poorest areas of our state and affordable energy in a time when Ohio is lacking in all the above.

Our layers of shale contain large deposits of natural gas that burns 30% cleaner than oil and 50% cleaner than coal. Ohio’s natural resources will bring our state’s economy back on track by attracting businesses such as Chesapeake Energy as well as other companies that will benefit from the trickle-down wealth that energy companies will create. House Bill 133, which was signed by Governor Kasich on June 30th, provides the first step to opening Ohio’s magnificent supply of natural resources to private industries—also known as job creators. House Bill 133 provided the ability of the state to lease public lands for natural gas and oil exploration. This was necessary to attract investors because the state owns so many acres of land in Ohio.

Ohio sits upon the two shale formations: the Marcellus shale, estimated to be the second largest natural gas field in the world—being able to supply the U.S. demand for natural gas for the next 20 years—and the Utica shale. Previously, these deep formations could not be tapped but we are no longer limited by technology of the past. Some new and updated technologies are providing more access than previously possible. The combination of horizontal drilling and hydraulic fracturing will allow our state to reap the opportunities that lie beneath. Horizontal drilling simply means that drilling turns horizontal after reaching a certain depth, decreasing the number of well-bores needed. Once this is achieved, hydraulic fracturing—a method by which highly pressurized water is used to crack the shale—is enacted to break up the shale and release the natural gas deep inside. This process has been used for more than 60 years and has been safely performed in over one million wells nationwide.

The presence of an energy company alone will provide jobs for Ohioans, but many more opportunities exist. Peripheral companies, such as those that manufacture pipes and other equipment used in drilling, will be attracted to Ohio in an effort to profit off Ohio’s booming new industry. This is economic stimulus without the government spending a penny. Additionally, various other industries will find Ohio’s immense supply of cheap energy appealing. The Ohio Chamber of Commerce has stated that “in 2009 a Pennsylvania study estimated Marcellus gas producers have already spent a total of $4.5 billion to develop the resource, resulting in the creation of 44,000 jobs. The same study estimated employment in the state would expand by more than 88,000 jobs in 2010 and 111,000 jobs in 2011.” It is also thought the tapping of the Bakken formation in North Dakota helps to explain the state’s 3.2% unemployment rate, the lowest in the nation. This is good for Ohio.

House Bill 133, which will go into effect on September 30th, will begin the first steps in tapping Ohio’s natural resources. Funds obtained through the leasing of state lands will be used to upkeep and renovate state parks for the future enjoyment of our citizens. In short, this act will help to provide jobs and enhance Ohio’s beautiful state parks.

The exploration and extraction of natural gas from shale formations in Ohio means prosperity and a higher standard of living for Ohioans for generations to come. Hydraulic fracturing has proven to be safe. The economic benefits are present in other states. This is a step in the right direction, and I trust the people of this district will share in the benefits that are about to come to this state.