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Ohio Petroleum Council: Governor’s proposed tax increase on shale development would threaten high-paying jobs and economic growth in Ohio

COLUMBUS, OHIO, February 4, 2013 – Increasing the severance tax on shale energy in Ohio, as Gov. John Kasich has proposed, will slow development and cost high-paying jobs, the Ohio Petroleum Council (OPC) said today.

“While we agree with the governor that all Ohioans should benefit from development of the Utica Shale, the last thing a recovering economy needs is more taxes; and the last thing Ohio’s economy needs is a hefty, tax increase that will harm job growth,” said Ohio Petroleum Council Legislative Analyst Robert Eshenbaugh. “Ohioans are already benefiting from shale energy development. We are an industry investing in putting people to work, paying high wages and already generating billions in revenue for the state. This proposal is ill-conceived and ill-timed.”

A new Ohio government report reinforced the importance of the developing shale energy industry. Jobs created within the oil and natural gas industry offered considerably higher wages than jobs in other industries across the state, according to the Ohio Department of Jobs and Family Services January 2013.

From 2011 to 2012, oil and natural gas workers were paid an average wage of $73,934; approximately $30,247 higher than the average wage offered in the state’s other industries, the study found. In addition, jobs supporting the oil and natural gas industry paid an annual wage of $58,765, approximately $15,078 higher than jobs in other industries.

The oil and natural gas industry in Ohio also paid more than $910 million in state and local taxes in 2011, according to a separate study by the global information and research firm IHS.

“More than 38,000 oil and natural gas related jobs were created in Ohio in the past year, with over 266,000 new jobs projected by 2035,” Eshenbaugh stated. “Ohio has its foot in the door for an unparalleled opportunity that is changing the face of American energy and our nation’s economic future. Ohio’s future is bright, but our state can do even more, provided the state government does not create obstacles based on a flawed fiscal framework.”

OPC is a division of API, which represents all segments of America's technology-driven oil and natural gas industry. Its more than 500 members provide most of the nation's energy. The industry also supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers $86 million a day in revenue to our government, and since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives
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