Ohio’s top producing Utica Shale counties have collected over $530 million in real estate property taxes from oil and natural gas activity since 2010, according to the latest data from county auditors compiled by the Ohio Natural Energy Institute (ONEi).
This is just one of the data points highlighting how essential the Ohio oil and natural gas industry is, according to the report which pulls government and other publicly available data to provide a transparent look at the industry. Other highlights include:
- Production: Ohio produced a record-breaking 30 million barrels of oil in 2023, up 35 percent since 2022.
- Taxes & Revenue: Ohio’s top producing counties have collected over $530 million in property taxes, and $540 million in ad valorem taxes, that support local schools and critical municipal services.
- Local Economic Impact: The oil and gas industry’s $108 billion in shale-related investments have created well-paying jobs that drive local economic growth with wages nearly 55% higher than the average Ohio wage.
- GHG Emissions Reductions: Despite record production, greenhouse gas emissions in Ohio are the lowest they’ve been since 2011.
Production
Ohio continues to be a top natural gas state while positioning itself as a growing oil play. Ohio had a record-breaking 30 million barrels of oil production in 2023, an increase of 35 percent from 22 million barrels in 2022.
Since 2010, Ohio has produced over 251 million barrels of oil, or the equivalent of enough gasoline to drive a medium-sized car from New York City to Los Angeles and back over 12 million times.
Ohio has also produced over 19.2 trillion cubic feet of natural gas since 2010. In 2023 alone, Ohio produced 2.2 trillion cubic feet which is enough natural gas to power over 26.5 million homes or 20 percent of the nation’s total industrial demand.
Highlighting its critical importance to our nation’s energy security, Ohio ranks as the seventh largest U.S. producer of natural gas, and the tenth largest oil producer.
Taxes & Revenue
Collected tax revenue from oil and natural gas activities is used for crucial community and environmental services. For example, Ohio has used its over $530 million in property tax revenue to protect the environment, plugging nearly 7,000 orphan wells since 2010. In 2024 alone, The Ohio Department of Natural Resources (ODNR) plugged 572 wells, up 16 percent from the 494 wells plugged in 2023.
Source: ONEi Report
Industry leaders in Ohio also remain committed to reinvesting in local communities through revenue given back to improve and invest in counties. The total ad valorem tax revenue collected in Ohio’s top producing counties between 2010 and 2023 was $542,317,643 – revenue which goes directly to municipalities, local school districts, and local government for critical community infrastructure and services.
Not only that, but producers generate substantial revenue for Ohioans in royalties and road improvements. For example, ONEi highlights that Ascent, the top natural gas producer in the state, has paid over $1 billion in royalties since 2022, while Encino, the top oil producer, has paid over $2 billion in royalties since it began operating, while also investing over $20 million in road improvements in the last two years alone.
Local Economic Impact
As Bruce Tague, ONEi’s Executive Director, explains in the report:
“The natural gas and oil industry is also a key driver of every sector of the U.S. economy. Here in Ohio, local communities benefit from good high paying wages, state-of-the-art school and curriculum opportunities, and millions of dollars in added revenue to local municipalities all thanks to the revenue generated from this industry.”
Since 2012, cumulative shale-related investment in Ohio has totaled over $108 billion, creating well-paying jobs and boosting local economies. In 2023, oil and gas operations contributed nearly $1 billion in wages, with Ohio’s total energy sector accounting for over 160,000 well-paying jobs. Notably, the average wage of oil and gas workers is nearly 55 percent higher than the average annual wage in Ohio.
Tague continued:
“Ohio’s thriving natural gas and oil industry makes life better. Not only is homegrown Ohio energy providing high-paying, family-sustaining jobs, but it’s critical for energy security and the creation of countless products and innovations.”
GHG Emissions Reductions
Despite oil and natural gas production skyrocketing since 2012, greenhouse gas (GHG) emissions in Ohio continue to decline as producers continue to innovate and lead the way in environmental stewardship.
Overall, the Appalachia basin’s GHG emissions have been reduced by over 50 percent, reaching a record low of 2.17 million MT CO2e in 2023 while production remains near record high levels.
Greenhouse gas reductions in Ohio have been driven largely by natural gas providing a cleaner alternative to coal-fired power plants. Last year, nearly 60 percent of Ohioans’ electricity was generated from natural gas.
As the 10th largest energy producer and the 8th largest electricity producer in the country, Ohio’s oil and gas industry produces benefits for Americans within Ohio and beyond. Increased oil and natural gas production continues to lower costs for Americans while providing a secure reliable source of energy that reinforces national and energy security.
Read the full report and more essential facts about the industry HERE.
Bottom Line: Ohio’s oil and gas industry has created high-paying, family-sustaining jobs, funded environmental protection and community efforts, and boosted local economies, all while reducing greenhouse gas emissions and meeting important consumer demand.
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