First Oil

Natural gas output in the northeastern U.S., principally Pennsylvania, West Virginia and Ohio, has grown rapidly, sparked by shale gas development. This success story has provided the area with new jobs, a revived economy in some counties, and greater tax receipts. And development of the Marcellus and Utica shales has allowed these three states to surpass Texas (as of 2016) as the number-one gas-producing region in the U.S.

This fact stands in stark contrast to the decline of coal mining, and the economic consequences that have befallen portions of all three states. While shale gas has generated a fair number of new jobs, it’s still not enough. What the region needs is thousands of additional, good-paying jobs. But where should they come from?

This dilemma prompted the formation, one-and-a-half years ago, of Shale Crescent USA by a group of businessmen and community leaders, who want to see the Mid-Ohio Valley (MOV), which they have branded as the Shale Crescent region, thrive again. Their mission is to use the area’s abundant, cheap natural gas to target high-energy-intensive industries, such as petrochemicals and manufacturing, for relocation back to the region, and create high-wage, permanent jobs to improve people’s lives in the MOV.

Building the case. Because the MOV has the cheapest, most abundant gas in the industrialized world, say local leaders, manufacturers can operate more efficiently while producing products with more access to rivers, and have close proximity to over half the U.S. population, as well as an experienced workforce. “If northern West Virginia, southwestern Pennsylvania and eastern Ohio formed a country, it would be the third-largest natural gas producer in the world,” said Greg Kozera, director of marketing for Shale Crescent USA.

Armed with that knowledge, the organization is providing information and resources to companies and entrepreneurs looking to relocate, expand their operations, or start up a new business. This includes available properties; access to capital; workforce details; incentives and taxes; energy; and utilities.

In describing Shale Crescent’s mission, Kozera uses colorful metaphors. “What we are is fishermen,” he explained. “Our job is to hook a whale and bring it home to the MOV. Then, it is all hands on deck—state and local government, economic development groups and private businesses, as well as Shale Crescent—to get the whale in the boat.”

Providing motivation. To build momentum, Shale Crescent’s leaders staged an “economic development event” in Parkersburg, W.Va., on May 23. It featured well-known speakers from the MOV area, including Bob Huggins, head basketball coach at West Virginia University (WVU); Wally Kandel, senior V.P. at Solvay Specialty Polymers USA; Jerry James, president of Marietta, Ohio, independent, Artex Oil Company; Rebecca McPhail, president of the West Virginia Manufacturers Association; and Tom Witt, president of Witt Economics LLC and emeritus professor of economics at WVU. Event moderator was John Wharff, president of Jawco Inc.

According to the Parkersburg News and Sentinel, Wharff and McPhail spoke to the crowd of 500 about the importance of growing the MOV economy, based on ready, abundant gas supplies. “It’s time that we used our strengths,” Ms. McPhail was quoted as telling the crowd. James also reportedly told attendees that “at the beginning of the last decade, Pennsylvania, Ohio and West Virginia produced 3% of the nation’s natural gas. Today, they produce 30%, and that is growing rapidly to 35%.”

In the end, "we are non-political and non-gonvernmental," said Kozer. "It doesn’t matter to us which side of the Ohio a plant locates. The key is for us to work together as a region, so that everyone wins.” What a refreshing attitude. For more information, visit www.ShaleCrescentUSA.com, or email Kozera at gkozera@shalecrescentusa.com. 

About the Authors

Kurt Abraham

World Oil

Kurt Abraham kurt.abraham@worldoil.com