Many of you likely saw this interview in the Wall Street Journal with John England, the US Oil and Gas leader for Deloitte. I took note of it for two reasons.
One, the capital investment numbers that were cited were astounding: North American E&P spending of $350 Billion in 2013 and North American midstream spending of almost $50 billion.
Two, this week I moderated a panel in Columbus for the Ohio Tax Conference and heard first hand some of the Ohio spending numbers. On the panel were Mike Moore, the new CEO of Gulfport Energy, David Ledonne, VP of Operations for MarkWest, Brent Breon, VP for Business Development for Blue Racer and David Mustine the Energy Manager for JOBS OHIO. So we were hearing from one E&P, two midstreams and the economic development entity for the state. This group indicated that total industry spending in 2014 could be $10 Billion dollars just in Ohio. David Mustine added that no other industry sector in the state comes even close to these numbers. As you might guess, our hour together was quite encouraging to the audience.
Some have described the shale energy opportunity as a “100 year supply of natural gas”. That statement continues to be debated but it is becoming increasing clear that the US generally will reap an energy bounty over the next 10 to 20 years because of the development of shale energy.