The energy sector of Ohio consists of thousands of companies and cities representing the oil, natural gas, coal, solar, wind energy, fuel cell, biofuel, geothermal, hydroelectric, and other related industries. Oil and natural gas accounts for $3.1 billion annually in sales while ethanol generates $750 million. Toledo is a national hub in solar cell manufacturing, and the state has significant production of fuel cells. In 2008, the state led the country in alternative energy manufacturing according to Site Selection Magazine, while the natural gas industry has experienced growth due to the expansion of shale gas.
Several notable energy companies are headquartered in Ohio, including American Electric Power, Columbia Gas of Ohio, DPL Inc., Marathon Petroleum Company, American Municipal Power, Inc., Cleveland-Cliffs, Murray Energy, FirstEnergy, Oxford Resource Partners LP, AB Resources, American Hydrogen Corporation, and IGS Energy. Rolls-Royce North America's Energy Systems Inc. is headquartered in Mt. Vernon, specializing in gas compression, power generation, and pipeline technologies."Facilities" , Rolls-Royce, Retrieved 19 November 2009. Ultra Premium Oilfield Services and V&M Star Steel operate steel production facilities in the state, which cater to energy exploration.
Ohio consumed 160.176 TWh of electricity in 2005, fourth among U.S. states, and has a storied history in the sector, including the first offshore oil drilling platform in the world, and a modern, renewable energy economy along with the traditional nuclear, oil, coal, and gas industries.
Ohio has been ranked last in addressing environmental issues and alternative energy consumption and 47th in carbon footprint."The Ten Least Green States In U.S"., The Huffington Post. 22 April 2011. Retrieved 24 April 2011 The modern American environmental movement concerning legislation and awareness can largely be traced back to the Cuyahoga River fire of June 22, 1969."Invisible threats mark Earth Day at 40", Seth Borenstein. NBC News. 22 April 2010. Retrieved 24 April 2011"Earth Day's effect on Cleveland journalist covering Northeast Ohio environment; take reader poll", Michael Scott. The Plain Dealer (Cleveland). 22 April 2011. Retrieved 24 April 2011
Early innovation Thomas Edison, a native of Milan, is widely regarded as a father of the modern industrialized world and the originator of mass-energy generation and distribution concepts, as well as the long-lasting, practical electric light bulb. Another Ohio native, Charles F. Brush is said to have invented the first electric dynamo, resulting in the present-day United Kingdom–based Brush Electrical Machines. Arthur Compton, of Wooster, invented the fluorescent light tube and was a pioneer in the study of atomic energy.
Oil and natural gas
The Ohio oil and natural gas industries employ 14,400 citizens, resulting in $730 million in wages. The industries paid $202 million in royalties to landowners, and $84 million in free energy."Industry Facts" , Ohio Oil and Gas Association, Retrieved 19 Nov 2009. The state's oil and natural gas industry continues to grow, having topped the $1 billion mark in market value production for four consecutive years, including $1.35 billion in 2008. This has only been accomplished five times in state history."Summary of Ohio Oil and Gas Activities 2008" , Ohio Division of Mineral Resources Management, Retrieved 19 Nov 2009. The oil and gas industry contributed $1.5 billion to the gross state product in 2008, and $3.1 billion in sales."Ohio Energy Facts" , Ohio Oil and Gas Education Program, Retrieved 19 Nov 2009.
Ohio was one of the original modern-energy states in the world starting in the 19th century and has a storied history. The first discovery of oil from a drilled well and first offshore oil rig placed in world history occurred in Ohio in 1814 in Noble County, and 1891 at Grand Lake St. Marys."Ohio Crude and Natural Gas Producing Industry", Burchfield Craig, retrieved 19 Nov 2009. Ohio was the country's lead producer of oil between 1895 and 1903, until technology allowed further developments throughout the nation."Ohio was once oil king, but production peaked in 1896" , Energy Bulletin, Retrieved 19 Nov 2009. Since that first well drilled in 1814 by Silas Thora and Robert McKee in Noble County, the state has drilled 273,000 wells, ranking it fourth nationally behind Texas, Oklahoma, and Pennsylvania historically., Columbus Dispatch. November 21, 2010.
At peak production, the state produced of oil in 1896. They produced the world's first billionaire, John D. Rockefeller, as a result. Standard Oil was first headquartered in Cleveland, beginning in 1870. The state has produced since 1860.
In 2007, the state produced of crude,"Our Industry" , Ohio Oil and Gas Association, Retrieved 19 Nov 2009. and increased production to in 2008, ranking #17 in the country."Crude Oil Production" , United States Department of Education, Retrieved 19 Nov 2009. The state is fourth in the country in total wells drilled, including natural gas, only trailing Texas, Oklahoma, and Pennsylvania, and having drilled 1,048 new wells in 2008. Offshore oil drilling in Lake Erie first occurred in 1913, and the lake is home to oil reserves.
Ohio has the second largest oil refining capacity in the Midwest."Ohio Quick Facts" , U.S. Department of Energy, Retrieved 19 Nov 2009. Toledo is home to facilities operated by PBF Energy and BP, totaling over 300,000 BPD capacity. The BP facility is undergoing a $400 million renovation and is expected to receive nearly exclusive supplies from a $2.5 billion oilsands project in Alberta by 2011."Husky, BP ready for $2.5B Sunrise oilsands project" , Calgary Herald, Retrieved 22 Jan 2010. Toledo is also a target destination for supplies coming from the Bakken Oil Fields."Notice of Open Season" , Kinder Morgan, Retrieved 22 Jan 2010.
Natural gas was discovered in Clinton County in 1887. In 2008, the state produced 85 billion cubic feet of natural gas, which nearly 100% of the production stayed in the state, enough to heat 1 million homes. The Rockies Express Pipeline was recently completed, connecting the eastern part of Ohio with natural gas production facilities in Colorado. 1.1 trillion cubic feet of natural gas reserves are estimated to be in Ohio's portion of Lake Erie alone."Canada Producing; U.S. Isn't", American Association of Petroleum Geologists, Retrieved 19 Nov 2009.
The Marathon Petroleum Company and IGS Energy are major oil and natural gas companies headquartered in the state, with Speedway, headquartered in Enon, serving as a gasoline distributor of Marathon. Natural gas supplier Delta Energy completed the construction of its new headquarters in Dublin in the summer of 2011."Delta Energy New Corporate Headquarters" , MA Architects. 8 September 2011. Accessed 9 September 2011
Devonian Shales In 1951, the process of hydraulic fracturing was used in Ohio to extract oil and gas. Beneath Ohio rests part of the Devonian Shales, which contain large quantities of natural gas and oil reserves, and is one of the world's largest concentrations of organic carbon."Technically Recoverable Devonian Shale Gas in Ohio, West Virginia, and Kentucky" , Society of Petroleum Engineers, Retrieved 19 Nov 2009.
Part of the Devonian Shale is the Marcellus Shale, which alone is estimated to hold between 168 trillion and 516 trillion cubic feet of natural gas."Ithacans Weigh Pros and Cons Of Large-Scale Drilling Project" , The Cornell Daily Sun, Retrieved 19 Nov 2009. Recent technological advances have made the recovery of these reserves possible, and the state has experienced a boom in drilling."Gas Wells Proliferate in Northeast Ohio" , WCPN, Retrieved 19 Nov 2009. It is estimated that of oil are present in the Devonian-Mississippi Shale, with 98% of the near-surface mineable resources located in Ohio, Kentucky, Indiana, and Tennessee."United States Oil-Shale Deposits", Geology, Retrieved 19 Nov 2009.
Great Shale Gas Rush By March 2010, The Intelligencer, based in neighboring Wheeling, West Virginia, had declared that a "gas rush" was occurring with the Marcellus Shale in the area and that property was "hot"."The Gas Rush Is On", The Intelligencer, Retrieved 8 Mar 2010. May saw the $4.7 billion acquisition by Royal Dutch Shell of East Resources's drilling property in neighboring states."Royal Dutch Shell buys Marshall gas driller East Resources Inc. for $4.7B" , Pittsburgh Tribune. Rick Stouffer. 29 May 2010. Retrieved 25 June 2010.
Intense leasing activity was reported in eastern Ohio in September, including Gastar Exploration and South Korea–based Atinum Partners citing Ohio acreage in a $70 million deal.Gastar Enters JV With Korean Firm To Develop Marcellus Assets Pennsylvania-based CONSOL Energy began drilling Belmont County, while Anschutz Exploration Corporation announced that month it had sold of its oil and natural gas fields, including in Ohio, for $3 billion.
By October, National Geographic had officially coined the boom as the "Great Shale Gas Rush", with 70 energy companies prospecting New York, Pennsylvania, West Virginia, and Ohio with plans to drill 3,500 well a year over the next decade with the potential of 200,000 new employment positions.
In August 2011, Chesapeake Energy announced it would open a field office in Canton."Driller chooses office in Canton", Matt Steffy. Trib Today. 19 Aug 2011. Retrieved 19 Aug 2011 In September 2011, Hess Corporation announced a $750 million play in the state's Utica Shale."Hess Acquires Additional Acreage in Ohio's Utica Shale", MarketWatch. 8 September 2011. Accessed 9 September 2011
Infrastructure V&M Star Steel, a subsidiary of France-based Vallourec, announced plans to construct a $650 million plant in Youngstown in February 2010 because of the drilling boom, expanding existing operations in the state, which broke ground in June of that year."V&M Star to Officially Expand, Create 350 Jobs" , WYTV, Retrieved 28 Feb 2010."V&M Star breaks ground on $650M mill expansion", AMM. Maria Guzzo. 28 June 2010. Retrieved 13 July 2010. Later in February, Russia-based TMK IPSCO opened a production facility in Brookfield through a subsidiary, Ultra Premium Oilfield Services, with the Marcellus Shale exploration boom cited as the reason."Russian pipemaker confirms reports of new local jobs" , The Herald, Retrieved 28 Feb 2010. By June 2010, TMK IPSCO had cited increasing sales commensurate with the "boom"."Pipe makers' sales skyrocket along with area's gas boom" , iStock Analyst. 25 June 2010. Retrieved 25 June 2010.
In July 2010, the U.S. Department of Labor announced a $5 million grant to train workers for Marcellus shale drilling, including laborers in Ohio."Marcellus workforce training", WDUQ. 2 July 2010. Retrieved 13 July 2010. In August of that year, Kinder Morgan announced plans to construct a 230-240 mile-long underground pipeline, which would transport recovered natural gas supplies in Western Pennsylvania from West Virginia to Toledo, ultimately connecting with existing pipelines in Michigan and Southern Ontario."New pipeline could impact Muskingum, Coshocton counties" , Brian Gadd. Zanesville Times Recorder. 23 Aug 2010. Retrieved 5 Sep 2010.Kinder Morgan Cochin pipeline could bring part-time jobs to Coshocton In September, Warren's water treatment facility announced plans to become the first in the state to accept waste water from shale drilling, while at the 2010 Marcellus Summit in State College, Pennsylvania, state officials announced they were working with local officials on bonding issues for new infrastructure.