Oil and Gas Industry

Kasich Still Fighting To Get 'Fracking' Tax Approved This Year

Jun 2, 2015
Lawmakers scrapped Gov. Kasich's proposal that would have given schools less money.
Flickr Creative Commons User Thoth188

Senate leaders are talking about possibly creating a so-called "fracking" tax through this year’s budget plan. The fight over increasing the oil and natural gas tax has been a long battle on many fronts.

The Senate plans on releasing a revised budget any day now and it might include an increase to what’s known as the severance tax—this is a tax on the oil and gas extracted from Ohio’s shale. 

If that happens, it could be Gov. John Kasich’s closest shot at getting an increase to pass in three years.

Ohio's high court recent ruling limits local power over gas drilling.
WCPN

State statistics show oil production has more than doubled and natural gas has tripled in Ohio in the past year.

The Department of Natural Resources said Wednesday that more than 3.5 million barrels of oil and 164 billion cubic feet of natural gas were produced during the last three months of 2014. During the same quarter in 2013, Ohio wells produced 1.4 million barrels of oil and 43 billion cubic feet of natural gas.

The increase was fueled by a building boom of wells.

Ohio's high court recent ruling limits local power over gas drilling.
WCPN

The Ohio Supreme Court has ruled that cities can’t enforce local laws banning fracking if the state has issued a permit to a driller. 

Towards the end of the year in 2008, gas prices dipped to a similar low.  oil gas pump price
Nicholas Eckhart / Flickr/Creative Commons

The price of gas is at a new low this week, with Ohio’s average around $1.99 per gallon, down about 80 cents from last month and down about $1.38 from the 2013 average.

A Pennsylvania gas well.  fracking drilling
Gerry Dincher / Flickr/Creative Commons

COLUMBUS, Ohio (AP) — A new study suggests that fracking triggered hundreds of too-small-to-be-felt earthquakes in eastern Ohio late last year, months before the state first linked seismic activity to the oil-and-gas extraction technique.

The study, in the journal Seismological Research Letters, identified nearly 400 tremors on a previously unmapped fault in Harrison County between Oct. 1 and Dec. 13, 2013. That included 10 quakes of magnitudes of 1.7 to 2.2 — significantly more intense than expected, though still minor.

Corn harvest
United Soybean Board / Flickr/Creative Commons

The Midwestern corn harvest is just getting underway, and the region is predicting record corn crops. That means depressed prices for producers—and possibly, trouble with getting that corn where it needs to go.

Is Energy Independence Likely For The US?

May 20, 2014
gas pump
futureatlas.com / Flickr Creative Commons

There has been a buzz in the media over the past couple of years about impending US energy independence. University of Dayton professor Bob Brecha has some thoughts on how likely this scenario is.

Many of us have seen or heard news stories predicting that the U.S. will become the world’s leading oil producer within a decade, and that North America as a whole could become a net exporter of oil in two decades’ time. Energy independence — a goal of U.S. administrations since the energy crises of the 1970s — may be within reach.

Kasich, Republicans Differ On Oil & Gas Tax

Mar 28, 2014

Governor Kasich’s proposal in his mid-biennium budget to raise taxes on oil and gas drillers in Ohio is being met with resistance from Republicans in the Ohio legislature. In this week’s PoliticsOhio, the Statehouse News Bureau’s Andy Chow tells Emily McCord that two different proposals are being debated.

Chow reports that the current tax rate on oil and gas drillers is very low compared to other states. Governor Kasich’s proposal would raise the tax to 2.75 percent. Matt Huffman (R-Lima) has a different proposal that would raise the tax to 2.25 percent.

An environmental group has discovered a controversial playbook that a state department drew up to tackle oil and gas drilling issues. The plan calls into question the relationship between a state agency and the industry it’s supposed to regulate. Now, two state lawmakers are asking for legislative hearings to further investigate hearings.