As the president and CEO of Gulfport Energy, I have seen first-hand how the horizontal shale industry has been a major part of the positive economic transformation of rural Appalachia, particularly communities in Southeastern Ohio. This economic transformation is not only a result of the significant amount of money spent for the drilling of wells and the construction of processing facilities and infrastructure, but also through the associated increase in tax revenues collected by local communities and the state. In a recent blog post, McDonald Hopkins’ Mike Wise explained how the upstream, midstream, and downstream shale industry has invested over $50 billion in Ohio in the last five years alone. Also, not enough can be said of the positive impact the creation of life-changing job opportunities has had for areas previously experiencing 25 percent unemployment.
But that is just part of the story here in Ohio.
New, life changing and sustained wealth has also been created by lease bonus payments, royalties, and working interests paid directly to the landowners and residents of those rural Appalachian areas where shale activity takes place.
In the next year, billions will be spent in Ohio by just the upstream sector alone. And when you look at the quality and size of the resources contained in the Utica Shale in Ohio, there could be wells producing for the next 30 to 40 years! The shale industry is not going away, and will continue to have a huge economic impact for generations to come.Mike Moore is the president and CEO of Gulfport Energy, an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America and one of the largest producers of natural gas in the contiguous United States. Watch Mike give his perspective on what 2017 holds for the shale industry in Ep. 011 of MH Energy Exchange.