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Sunday, August 25, 2013

More good news from the Utica.

 A Cleveland State University study finds sales receipts in key Utica counties in Ohio, mostly to the northeast of the state, rose 20% in 2012 which far out paces the rest of the state. Drilling permits in the second quarter of 2013 rose to 164 which is a 321% increase from the second quarter a year ago.
The Ohio Department of Job and Family Services reports that about 1,300 workers last year found employment in Ohio's Utica and Marcellus Shale. That is good but  natural impediments such as bottle necks due to the lack of an energy infrastructure and trouble hiring specialized help have retarded job growth.
The 20% rise in sales tax revenues logically comes from a similar rise in consumer disposable income. Royalty checks to land owners don't create direct employment but prosperity is contagious. Retailers in those lucky counties saw a 20% rise in sales and one can imagine the exuberance a retailer feels when his top line grows by one fifth in a single year.

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