State
Representative Jim Buchy...
“Black-Gold”
Rush Set To Begin in Days
September 27, 2011
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.
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