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OhiO ShaleQuarterly economic trends for ohio oil and Gas industries

January 2016

CONTENTSA Message from Director Dungey ............................... 2

Executive Summary ...................................................... 3

Background Information .............................................. 4Data Sources ............................................................... 4Data Limitations ......................................................... 4Snapshot of Ohio’s Economy .................................... 5Mining and Logging Jobs vs. Total Jobs in Ohio ... 5

Statewide Shale-Related Industries ............................ 6

JobsOhio Network Regions .......................................... 7

Regional Shale-Related Industries .............................. 8

Wages for Ohio Shale-Related Core and Ancillary Industries ........................................................................ 9

Ohio Shale-Related Online Job Postings ................... 10

Well Activity Status ...................................................... 11

Key Occupations in Core Shale-Related Industries .. 12 In-Demand Shale-Related Occupations ..................... 13 Statewide Shale-Related Employment Data ............. 14

JobsOhio Network Shale-Related Employment ....... 15

County Unemployment Rates in December 2015 .... 16

County Unemployment Rates in December 2014 .... 17

Definitions ..................................................................... 18

2

A Message from Director Dungey

Oil and gas drilling has only recently begun to accelerate in Ohio, and already many families and communities have begun to see a positive impact. As you’ll see in the pages that follow, core shale-related employment, which includes such things as pipeline construction and well drilling, increased 96 percent from the second quarter of 2011 to the second quarter of 2015. Ancillary employment – for example, freight trucking and environmental consulting – also increased. We expect non-shale industries, such as food and retail businesses near drilling sites and the surrounding communities, to benefit from increasing shale activity, as well. Ohio is fortunate to have this natural resource that can provide good jobs for families and reinvigorate many of our communities, especially those in the eastern part of the state. The average wages of shale-related jobs are excellent; $75,071 in core industries and $63,147 in ancillary industries. In both cases, this is higher than the average wage in all Ohio industries: $46,393. At the Ohio Department of Job and Family Services (ODJFS), we have been working hard to help more Ohioans take advantage of these opportunities. We’ve been working closely with local workforce investment areas, community colleges, other post-secondary educational institutions, and employers to identify the occupations most in need of workers and to make sure that appropriate training programs are in place. In any given month, thousands of shale-related job openings are posted online, at www.OhioMeansJobs.com. The Ohio Board of Regents also provides an overview of shale-related employment opportunities and information about education and training at www.OhioEnergyPathways.org. Individuals can sign up for on-the-job training opportunities at any of the state’s local OhioMeansJobs Centers, which provide free job training and other services to Ohioans looking for work and employers looking for workers. Individuals can post their resumes, and employers can post job openings at www.OhioMeansJobs.com.

We encourage any Ohioans in need of work or who may be considering new careers to explore these opportunities. We’re committed to improving the well-being of Ohio’s workforce and families, and are excited about the potential shale holds to make a significant difference in so many families’ lives.

Cynthia C. Dungey, Director Ohio Department of Job and Family Services

3

EXECUTIVE SUMMARY

Wages (2014 Q3 through 2015 Q2) See page 9.• The four-quarter average wage across all industries was $46,393.

• The four-quarter average wage in core shale-related industries was $75,071, which was $28,678 greater than the average for all industries.

• The four-quarter average wage in ancillary shale-related industries was $63,147, which was $16,754 higher than the average for all industries.

Online Job Postings (2015 Q4) See page 10.• Ohio had 5,432 online job postings in core and ancillary shale-related industries.

Stable Employment, All Hires and Separations (2011 Q4 to 2014 Q4) See page 14.• Stable jobs, those present at the beginning and end of a quarter, increased in three core shale-related

industries: support activities for mining, utility system construction, and pipeline transportation of natural gas.

13,300

13,500

13,700

13,900

2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015 Q2

13,455 13,439 13,452

13,640

13,798

Shale-Related Establishments by Year

155,000

165,000

175,000

185,000

195,000

2011 Q2 2012 Q2 2013 Q2 2014 Q2 2015 Q2

173,786

179,414182,575

190,153193,755

Shale-Related Employment by YearEmployment (2011 Q2 to 2015 Q2) See page 6. • Core shale-related industry employment (such as

pipeline construction and well drilling) was up 6,600 (96.0 percent).

• Ancillary shale-related industry employment (such as freight trucking and environmental consulting) increased 13,369 (8.0 percent).

• All industry employment was up 294,711 (5.9 percent).

Business Establishments (2011 Q2 to 2015 Q2) See page 6.• Core shale-related business establishments increased

by 246 (41.6 percent).

• Ancillary shale-related establishments increased by 97 (0.8 percent).

• Over the same time period, Ohio experienced an increase of 1,868 business establishments in all industries.

• Shale-related business establishments totaled 13,798 during the second quarter of 2015.

These data are meant to provide a barometer of shale-related economic activity and employment trends. While the vast majority of shale-related employment can be found in certain industries, not all business establishments in those industries are involved in shale activity. For those that are, not all of their products and services and, therefore, their employment, are necessarily linked to shale-related economic activity.

4

BACKGROUND INFORMATION

Data Sources

The purpose of this quarterly publication is to provide the most current available data on shale-related economic activity in Ohio as compared to the base year of 2011. Although several data sources are cited in this publication, the primary source is the Quarterly Census of Employment and Wages (QCEW).

The QCEW program derives its data from quarterly tax reports of employers subject to state and federal unemploy-ment insurance laws. This includes 95 percent or more of all wage and salary employment in Ohio. Under the QCEW program, employment data represent the number of covered workers who worked during, or received pay for, the pay period including the 12th of the month. Excluded are members of the armed forces, the self-employed, unpaid family workers and railroad workers covered by the railroad unemployment insurance system. Data is published approximately six months after the quarter ends.

Also included in this publication are several additional data sources that capture Ohio’s most current overall eco-nomic situation (Local Area Unemployment Statistics and Current Employment Statistics), employer demand (The Conference Board Help Wanted OnLine™Data Set) and hiring activity (Quarterly Workforce Indicators). For an explanation of all data sources, please refer to the “Definitions” section on page 18.

In this edition, most current data from the QCEW program are for the second quarter of 2015. Because the data are not seasonally adjusted, the same quarter of a given year must be used when analyzing growth over time. This will ensure that seasonal factors are not influencing employment change. Therefore, second quarter 2015 QCEW data are compared to second quarter 2011 QCEW data.

Data Limitations

The North American Industry Classification System (NAICS) was used to define shale-related industries. Much of the information included in this publication reflects data on a group of six industries identified as “core” and a group of 30 industries identified as “ancillary.” These data are meant to provide a barometer of shale-related economic activity and employment trends. While the vast majority of shale-related employment can be found in these industries, not all business establishments in these industries are involved in shale activity. For those that are, not all of their products and services and, therefore, their employment are necessarily linked to shale-related economic activity. This is particularly true for the ancillary industries.

The data in this publication include government employment (federal, state and local) in all shale-related industries because significant non-private employment is present in a number of these industries, most notably: highway, street and bridge construction; engineering services; water supply and irrigation systems; and sewage treatment facilities.

As shale-related activity develops further in Ohio, additional industries may be added to the ancillary group, based on such factors as significant employment gains in an industry in a geographic region or the identification of a group of companies in the same industry involved in shale-related activity.

5

• Ohio’s seasonally adjusted unemployment rate for December 2015 was 4.7 percent. • The rate was 0.4 percentage points lower than the December 2014 rate.

• Ohio had 5,451,500 seasonally adjusted nonfarm jobs in December 2015. • Compared to December 2014, employment increased by 82,700 jobs.

• Ohio’s hiring activity increased from the fourth quarter of 2011 to the fourth quarter of 2014. • Across all industries, an estimated 870,191 workers started new jobs (new hires and rehires)

during the fourth quarter of 2014, an increase of 15,102 hires from the fourth quarter of 2011.

• Employer demand increased in Ohio. • Ohio had 277,416 job ads posted online in the fourth quarter of 2015, an increase of 24,424 from the

fourth quarter of 2014.

• Ohio’s supply/demand rate, which is the ratio of the number of unemployed people to advertised job vacancies, is lower than the U.S. rate (The Conference Board).

• The seasonally adjusted supply/demand rate for Ohio was 1.08 in November, which was below the U.S. rate of 1.40. A lower rate is better.

Source: Current Employment Statistics (CES) survey. Estimates represent nonagricultural wage and salary jobs by place of work. Data for the latest month are preliminary, although other months are subject to revision.

Snapshot of Ohio’s Economy

Mining and Logging Jobs vs. Total Jobs in Ohio

4,700,000

4,800,000

4,900,000

5,000,000

5,100,000

5,200,000

5,300,000

5,400,000

5,500,000

5,600,000

5,700,000

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Mining and Logging (left axis)

Total Nonfarm Employment (right axis)

Total Mining and Logging Employment from January 2001 (Seasonally Adjusted)

• In December 2015, 13,800 workers were employed in the mining and logging industries. • From December 2011 to December 2015, employment in the mining and logging industries increased

by 2,300 jobs.

6

STATEWIDE SHALE-RELATED INDUSTRIES• From 2011 Q2 to 2015 Q2, employment in core industries increased by 6,600 (96.0 percent). Over the same

period, employment in ancillary industries increased by 13,369 (8.0 percent).

• From2011Q2to2015Q2,thenumberofbusinessestablishmentsinthecoreindustriesgrewby246(41.6percent), while establishments in ancillary industries increased by 97 (0.8 percent).

Number of Business Establishments and Employment in Shale-Related Industries (2011 Q2 - 2015 Q2)

Source: Quarterly Census of Employment and Wages.

NAICS Title Estab. Empl. Estab. Empl. Estab. Empl.211111 Crude petroleum and natural gas extraction 194 2,863 191 1,601 -3 -1,262211112 Natural gas liquid extraction 3 24 20 465 17 441213111 Drilling oil and gas wells 79 525 108 1,436 29 911213112 Support activities for oil and gas operations 181 1,292 309 4,252 128 2,960237120 Oil and gas pipeline construction 98 1,862 166 5,321 68 3,459486210 Pipeline transportation of natural gas 36 307 43 398 7 91

591 6,873 837 13,473 246 6,600Ancillary Industries

NAICS Title Estab. Empl. Estab. Empl. Estab. Empl.221112 Fossil fuel electric power generation 83 5,292 72 4,198 -11 -1,094221210 Natural gas distribution 142 3,723 149 5,263 7 1,540221310 Water supply and irrigation systems 248 6,049 267 5,912 19 -137221320 Sewage treatment facilities 212 3,846 211 3,815 -1 -31237110 Water and sewer system construction 390 5,029 364 5,369 -26 340237310 Highway, street, and bridge construction 724 15,156 723 16,764 -1 1,608238912 Nonresidential site preparation contractors 628 5,117 626 6,231 -2 1,114325110 Petrochemical manufacturing 5 357 5 326 0 -31325120 Industrial gas manufacturing 47 748 42 717 -5 -31331110 Iron and steel mills and ferroalloy manufacturing 58 9,982 59 8,618 1 -1,364331210 Iron, steel pipe and tube from purchase steel 53 3,122 38 2,764 -15 -358333131 Mining machinery and equipment manufacturing 12 453 12 438 0 -15333132 Oil and gas field machinery and equipment 6 137 10 252 4 115423810 Construction equipment merchant wholesalers 200 2,575 201 3,558 1 983423830 Industrial machinery merchant wholesalers 1,693 15,287 1,594 17,353 -99 2,066423840 Industrial supplies merchant wholesalers 503 4,803 490 5,651 -13 848484110 General freight trucking, local 1,361 12,206 1,387 12,803 26 597484220 Other specialized trucking, local 1,008 7,094 1,050 8,314 42 1,220484230 Other specialized trucking, long-distance 284 4,540 344 6,052 60 1,512531190 Lessors of other real estate property 291 949 278 973 -13 24532412 Other heavy machinery rental and leasing 167 1,318 192 2,353 25 1,035541330 Engineering services 2,285 27,611 2,387 29,215 102 1,604541360 Geophysical surveying and mapping services 51 257 59 406 8 149541380 Testing laboratories 359 6,535 379 6,296 20 -239541620 Environmental consulting services 299 1,676 317 1,919 18 243562910 Remediation services 178 2,394 203 3,667 25 1,273811310 Commercial machinery repair and maintenance 1,102 7,328 1,042 8,117 -60 789924110 Air, water, and waste program administration 165 6,259 159 6,261 -6 2924120 Administration of conservation programs 281 6,586 269 6,237 -12 -349926130 Utility regulation and administration 29 484 32 440 3 -44

12,864 166,913 12,961 180,282 97 13,36913,455 173,786 13,798 193,755 343 19,969

All Industry Totals 288,288 4,987,972 290,156 5,282,683 1,868 294,711

Change

2011 Q2 2015 Q2 Change

Core Industries and Ancillary Industries TotalsAncillary Industry Totals

Core Industry Totals

2011 Q2 2015 Q2Core Industries

7

JOBSOHIO NETWORK REGIONS

Southeast Ohio

Southwest Ohio

Central Ohio

West Ohio

Northwest Ohio

Northeast Ohio

Regions

8

REGIONAL SHALE-RELATED INDUSTRIESThe JobsOhio Network is a partnership of statewide economic development organizations with deep ties to their business communities. The following charts show trends in shale-related employment for each of the six JobsOhio regions.

Large percentage increases and decreases in employment may be the result of a change in industry classification following a routine NAICS assignment review. Changes in NAICS assignments are typically done with the publication of the first-quarter data.

-100.0%

-50.0%

0.0%

50.0%

100.0%

150.0%

200.0%

250.0%

300.0%

Southwest13.1%

Northeast117.7%

Central1.5%

West218.4%

Southeast205.7%

Northwest-81.9%

Core Shale-Related IndustriesPercent Employment Change (2011 Q2 - 2015 Q2)

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Southwest-2.4%

Northeast5.0%

Central20.1%

West5.7%

Southeast15.3%

Northwest6.3%

Ancillary Shale-Related IndustriesPercent Employment Change (2011 Q2 - 2015 Q2)

Source: Quarterly Census of Employment and Wages program, Enhanced Quarterly Unemployment Insurance file.

• The largest percent growth in employment for the core shale-related industries was in the West region (218.4 percent), followed by the Southeast region (205.7 percent).

• For the ancillary shale-related industries, the largest percent growth in employment was in the Central region (20.1 percent), followed by the Southeast region (15.3 percent).

9

WaGeS FOR OhiO Shale-RelaTeD CORe aND aNCillaRY iNDUSTRieS

• Thefour-quarteraveragewageacrossallindustriesfor2014Q3 through 2015 Q2 was $46,393.

• Thefour-quarteraveragewageinthecoreindustrieswas$28,678 greater than the average wage for all industries.

• Thefour-quarteraveragewageintheancillaryindustrieswas $16,754 higher than the average wage for all industries.

Four-Quarter Average Wage by Industry

Core Shale-Related Industries (2014 Q3 - 2015 Q2)

$75,071

Ancillary Shale-Related Industries (2014 Q3 - 2015 Q2)

$63,147All Ohio Industries (2014 Q3 - 2015 Q2)

$46,393Large changes in average wages may be the result of a change in industry classification following a routine NAICS assignment review.

Core Industries

$66,713

$70,760

$71,597

$73,359

$79,828

$84,114

$0 $20,000 $40,000 $60,000 $80,000 $100,000

Natural gas liquid extraction

Crude petroleum and natural gas extraction

Support activities for oil and gas operations

Drilling oil and gas wells

Oil and gas pipeline construction

Pipeline transportation of natural gas

$28,326

$39,334

$41,704

$43,986

$51,702

$53,954

$54,251

$55,269

$55,607

$55,860

$56,195

$56,421

$57,266

$60,587

$62,077

$62,112

$62,658

$63,924

$64,728

$64,816

$65,395

$65,484

$66,251

$70,231

$74,973

$77,433

$82,294

$89,138

$100,786

$110,396

Lessors of other real estate property

Administration of conservation programs

General freight trucking, local

Other specialized trucking, local

Commercial machinery repair and maintenance

Other specialized trucking, long-distance

Water supply and irrigation systems

Testing laboratories

Geophysical surveying and mapping services

Nonresidential site preparation contractors

Mining machinery and equipment manufacturing

Sewage treatment facilities

Air, water, and waste program administration

Construction equipment merchant wholesalers

Other heavy machinery rental and leasing

Oil and gas field machinery and equipment

Water and sewer system construction

Highway, street, and bridge construction

Iron, steel pipe and tube from purchase steel

Environmental consulting services

Utility regulation and administration

Industrial supplies merchant wholesalers

Remediation services

Industrial machinery merchant wholesalers

Engineering services

Industrial gas manufacturing

Iron and Steel Mills and Ferroalloy Manufacturing

Natural gas distribution

Fossil fuel electric power generation

Petrochemical manufacturing

Source: Quarterly Census of Employment and Wages.

Ancillary Industries

10

OHIO SHALE-RELATED ONLINE JOB POSTINGS

Statewide Online Job Postings2014 Q4 2015 Q4 % Change

Core Industries 89 177 98.9%

Ancillary Industries 2,961 5,255 77.5%

Total: ALL Industries 252,992 277,416 9.7%

Regional Online Job PostingsCore and Ancillary Combined 2014 Q4 2015 Q4 % ChangeSouthwest Ohio 509 966 89.8%

Northeast Ohio 1,038 1,741 67.7%

Central Ohio 594 972 63.6%

West Ohio 395 640 62.0%

Southeast Ohio 176 445 152.8%

Northwest Ohio 228 623 173.2%

Total* 3,050 5,432 78.1%

Statewide Online Job Postings• Job postings across all Ohio industries were 9.7 percent higher in the fourth quarter of 2015 compared to the

fourth quarter of 2014.

• Overall, job postings increased in core (98.9 percent) and ancillary (77.5 percent) shale-related industries.

Regional Online Job Postings• Job postings increased in the Southwest Ohio (89.8 percent), Northeast Ohio (67.7 percent), Central Ohio

(63.6 percent), West Ohio (62.0 percent), Southeast Ohio (152.8 percent), and Northwest Ohio (173.2 percent) regions in fourth quarter 2015 compared to fourth quarter 2014.

Source: The Conference Board Help Wanted Online® (HWOL). Data are subject to revision. Not seasonally adjusted.

Data are not comparable to previous Ohio Shale Quarterly Economic Trends for Ohio Oil and Gas Industries reports due to HWOL 2015 methodological revisions.

*The total includes job ads that may have listed the entire state as the geographical area. As a result, the sum of the job ads for the regions may be lower, since it does not include ads without a city or metropolitan statistical area specification.

11

WELL ACTIVITY STATUS AS OF JANUARY 16, 2016

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Wayne NationalWayne NationalForestForest

National Forest FSNational Forest FS

Wayne National ForestWayne National ForestNational Forest FSNational Forest FS

Mosquito Creek LakeMosquito Creek LakeArmy Corps of Engineers DODArmy Corps of Engineers DOD

Cuyahoga Valley NationalCuyahoga Valley NationalPark National Park NPSPark National Park NPS

Ravenna ArsenalRavenna ArsenalArmy DODArmy DOD

Michael J. Kirwan ReservoirMichael J. Kirwan ReservoirArmy Corps of Engineers DODArmy Corps of Engineers DOD

Berlin LakeBerlin LakeArmy Corps of Engineers DODArmy Corps of Engineers DOD

Charles Mill LakeCharles Mill LakeArmy Corps of Engineers DODArmy Corps of Engineers DOD

Pleasant Hill LakePleasant Hill LakeArmy Corps of Engineers DODArmy Corps of Engineers DOD

Beach City LakeBeach City LakeArmy Corps of Engineers DODArmy Corps of Engineers DOD

Atwood LakeAtwood LakeArmy Corps of Engineers DODArmy Corps of Engineers DOD

Leesville LakeLeesville LakeArmy Corps of Engineers DODArmy Corps of Engineers DOD

Mohawk ReservoirMohawk ReservoirArmy Corps of Engineers DODArmy Corps of Engineers DOD Tappan LakeTappan Lake

Army Corps of Engineers DODArmy Corps of Engineers DOD

Clendening LakeClendening LakeArmy Corps of Engineers DODArmy Corps of Engineers DOD

Piedmont LakePiedmont LakeArmy Corps of Engineers DODArmy Corps of Engineers DOD

Wills Creek LakeWills Creek LakeArmy Corps of Engineers DODArmy Corps of Engineers DOD

Dillon LakeDillon LakeArmy Corps of Engineers DODArmy Corps of Engineers DOD

Senecaville LakeSenecaville LakeArmy Corps of Engineers DODArmy Corps of Engineers DOD

Burr Oak LakeBurr Oak LakeArmy Corps of Engineers DODArmy Corps of Engineers DOD

Wayne National Forest PurchaseWayne National Forest PurchaseUnit Purchase Unit Block FSUnit Purchase Unit Block FS

213

258183

3 322186

37652 65

320

501

1331 13130

115

15

1

1

Well Head Count by County1 - 10

11 - 50

51 - 100

101 - 200

201 - 400

401 - 600

Horizontal Wells Activity Statusat end of Saturday 01/16/2016:

ODNR LandsODNR LandsODNR LandsDivision of Forestry

Department

Division of Parks

Division of Watercraft

Division of Wildlife

Natural Areas and Preserves

Utica/Point Pleasant Well Heads

Marcellus Well Heads

Horizontal Wellbores

Utica/Point Pleasant Bottom HoleXW PERMITTED-(Permitted; Not Drilled; Canceled)

DRILLED-(Drilling; Well Drilled)

PRODUCING-(Producing; Plugged Back)

INACTIVE-(Drilled Inactive; Shut in)

Lost Hole or Final Restoration

Dry and Abandoned

Plugged and Abandoned

Marcellus Bottom HoleXW PERMITTED-(Permitted; Not Drilled; Canceled)

DRILLED-(Drilling; Well Drilled)

PRODUCING-(Producing; Plugged Back)

Inactive

Wells Permitted To Date: Utica: 2117 Marcellus: 44(1 Utica-Permitted well is not mapped due to bad locational coordinates.)(1 Utica-Permitted well is not mapped due to well length >= 15000 feet.)Wells Drilled To Date: Utica: 1669 Marcellus: 29Wells Producing To Date: Utica: 1125 Marcellus: 20

STATE OF OHIOJohn R. Kasich, Governor

DEPARTMENT OF NATURAL RESOURCESJames Zehringer, Director

OFFICE OF INFORMATION TECHNOLOGYJeff Rowley, Chief

HORIZONTAL OIL AND GAS WELLS IN THEUTICA/POINT PLEASANT AND MARCELLUS FORMATIONS

ODNR OFFICE OF INFORMATION TECHNOLOGYJanuary, 2016

OHIO DEPARTMENT OF NATURAL RESOURCES2016

Text

Data source: The ODNR Division of Oil and Gas Resources provided the Well data from RBDMS; The ODNR Division of Geological Survey provided the S<SUB1</SUB> data; The ODNR Office of Information Technology provided the ODNR lands data; The NationalAtlas.gov provided the federal lands; Ohio Department ofTransportation provided the city boundaries, roads, and lakes data.

Projection is Ohio state plane coordinate system, south zoneNorth American Datum 1983.

³SCALE 1:300,000

5 0 5 102.5 Miles

5 0 5 10 152.5 Kilometers

Utica/Point Pleasant and MarcellusHorizontal Well Head Counts by County

12

KEY OCCUPATIONS IN CORESHALE-RELATED INDUSTRIES

The occupations listed in the table below are found within the national staffing patterns of core shale-related industries. While these occupations are not exclusive to the core shale-related industries, all are in the top 20 of one or more of these industries.

A standard occupation classification (SOC) code is provided for each occupation. For a complete list of terms and definitions, please refer to the Staffing Patterns definition on page 19.

SOC Code SOC Title

Median Annual Wage

Typical Education, Work Experience, On-the-Job Training (OJT)

17-2171 Petroleum engineers $107,940 Bachelor's degree

19-2042 Geoscientists, except hydrologists and geographers $68,210 Bachelor's degree

19-4041 Geological and petroleum technicians $55,620 Associate's degree; Moderate-term OJT

47-2011 Boilermakers $55,370 HS/GED; Apprenticeship

47-2051 Cement masons and concrete finishers $39,260 Less than HS; Moderate-term OJT

47-2151 Pipelayers $42,820 Less than HS; Short-term OJT

47-2221 Structural iron and steel workers $57,490 HS/GED; Apprenticeship

47-3015 Helpers--pipelayers, plumbers, pipefitters, and steamfitters $24,350 HS/GED; Short-term OJT

47-5011 Derrick Operators, oil and gas $36,780 Less than HS; Short-term OJT

47-5012 Rotary drill operators, oil and gas $33,430 Less than HS; Moderate-term OJT

47-5021 Earth drillers, except oil and gas $39,450 HS/GED; Moderate-term OJT

47-5071 Roustabouts, oil and gas $29,150 Less than HS; Moderate-term OJT

47-5081 Helpers--extraction workers $28,610 HS/GED; Moderate-term OJT

49-9098 Helpers--installation, maintenance, and repair workers $24,710 HS/GED; Moderate-term OJT

53-7021 Crane and tower operators $37,450 HS/GED; 1-5 years experience; Moderate-term OJT

53-7032 Excavating and loading machine and dragline operators $37,330 HS/GED; 1-5 years experience; Moderate-term OJT

53-7062 Laborers and freight, stock, and material movers, hand $23,310 Less than HS; Short-term OJT

Source: U.S. Bureau of Labor Statistics, Occupational Employment Statistics, May 2014.

13

IN-DEMAND SHALE-RELATED OCCUPATIONSThe occupations listed below have 2014 employment levels above 80 in the core shale-related industries and have been identified as in-demand occupations through the Ohio Workforce Information Exchange — Job Forecast initiative as of November 2015. This initiative works directly with employers with at least one Ohio location to identify employers’ most in-demand occupations over the next one, three and five years.

For more information on the Workforce Information Exchange, please refer to page 20.

SOC Code SOC Title

Median Annual Wage

Typical Education, Work Experience, On-the-Job Training (OJT)

11-1021 General and Operations Managers $90,180 Bachelor's degree, 1-5 Years Experience

11-9021 Construction Managers $82,170 Bachelor's degree, Moderate-Term OJT

11-9041 Architectural and engineering managers $116,640 Bachelor's degree; 5+ years experience

13-1051 Cost Estimators $55,890 Bachelor's degree

13-1071 Human resources specialists $53,860 Bachelor's degree

13-2011 Accountants and auditors $61,740 Bachelor's degree

13-2051 Financial Analysts $71,110 Bachelor's degree

13-1199 Business Operations Specialists, All Other $62,030 HS/GED, Long-Term OJT

15-1199 Computer Occupations, All Other $79,040 Bachelor's degree

17-2051 Civil Engineers $73,940 Bachelor's degree

43-3031 Bookkeeping, Accounting, and Auditing Clerks $35,600 HS/GED, Moderate-Term OJT

47-1011First-Line Supervisors of Construction Trades and Extraction Workers

$59,450 HS/GED, 5+ Years Experience

47-2031 Carpenters $42,640 HS/GED; Apprenticeship

47-2061 Construction Laborers $36,080 Less than HS, Short-term OJT

47-2073 Operating Engineers and Other Construction Equipment Operators $47,470 HS/GED, Moderate-Term OJT

47-2111 Electricians $50,190 HS/GED, Apprenticeship

47-2152 Plumbers, Pipefitters, and Steamfitters $52,010 HS/GED, Apprenticeship

47-5013 Service unit operators, oil, gas, and mining $33,190 Less than HS, Moderate-term OJT

49-1011 First-line supervisors of mechanics, installers, and repairers $58,770 HS/GED, 1-5 Years Experience

49-3031 Bus and Truck Mechanics and Diesel Engine Specialists $43,340 HS/GED, Long-Term OJT

49-3042 Mobile heavy equipment mechanics, except engines $44,020 HS/GED; Long-term OJT

49-9012 Control and valve installers and repairers, except mechanical door $55,020 HS/GED, Moderate-term OJT

49-9041 Industrial machinery mechanics $46,590 HS/GED, Long-term OJT

49-9071 Maintenance and Repair Workers, General $37,120 HS/GED, Long-Term OJT

51-1011 First-line supervisors of production and operating workers $53,570 Post-HS cert, 1-5 Years Experience

51-4121 Welders, Cutters, Solderers and Brazers $35,890 HS/GED, Moderate-Term OJT

51-8093 Petroleum pump system operators, refinery operators, and gaugers $63,830 HS/GED, Long-term OJT

51-9199 Production workers, all other $32,300 HS/GED, Moderate-Term OJT

53-3032 Heavy and Tractor-Trailer Truck Drivers $39,860 HS/GED, Short-Term OJT

53-7073 Wellhead Pumpers $31,780 Less than HS, Moderate-Term OJT

Source: U.S. Bureau of Labor Statistics, Occupational Employment Statistics, May 2014.

14

STATEWIDE SHALE-RELATED EMPLOYMENT DATA

The Quarterly Workforce Indicators (QWI) are a set of economic indicators derived from state administrative records and basic demographic information from the Census Bureau. They can be examined based on geography, industry, gender and age of workers. Data presented are the most recent available. Because QWI data are not seasonally adjusted, the same quarter must be used when analyzing changes over time. This will ensure that seasonal factors are not influencing employment change. Therefore, in the table below and on the following page, fourth quarter data from 2011 is presented with fourth quarter data from 2014.

The tables below and on the following page show Ohio shale-related employment. “Stable Employment” is an estimate of the number of jobs that were present at the beginning and end of a quarter. “All Hires” is the estimated number of workers who started a job during the quarter; it includes new and recalled employees. “Separations” is the estimated number of workers whose jobs with a given employer ended during a quarter.

Ohio

2011 Q4 2014 Q4

Stable Employment All Hires Separations


All industry groups 4,408,362 855,089 792,493 4,543,630 870,191 906,184

2111 Oil and Gas Extraction 2,867 188 185 2,039 637 521

2131 Support Activities for Mining 2,570 746 871 5,982 1,981 1,846

2371 Utility System Construction 9,418 2,212 3,458 11,941 5,812 8,654

4862 Pipeline Transportation of Natural Gas 337 14 3 402 17 3

Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Quarterly Workforce Indicators.

QWI are available only at the four-digit NAICS level. Consequently, although these industry groups contain some employment from non-shale-related core industries, they provide an indication of labor activity for these shale-related industries.

• Stable jobs, those present at the beginning and end of a quarter, increased in three core shale-related industries from fourth quarter 2011 to fourth quarter 2014: support activities for mining, utility system construction, and pipeline transportation of natural gas.

• The job market has significant turnover as demonstrated by the number of hires and separations.

15

JOBSOHIO NETWORK SHALE-RELATED EMPLOYMENT

Central Ohio

2011 Q4 2014 Q4



All industry groups 878,059 180,970 161,328 910,345 198,579 197,654

2111 Oil and Gas Extraction 183 6 11 170 14 12

2131 Support Activities for Mining 203 52 141 272 39 60

2371 Utility System Construction 1,840 279 420 2,354 527 1,043

4862 Pipeline Transportation of Natural Gas 123 6 *** 128 4 ***

Northeast Ohio

All industry groups 1,658,490 327,101 296,181 1,704,670 304,636 325,690

2111 Oil and Gas Extraction 663 79 75 1,104 299 207

2131 Support Activities for Mining 653 148 222 1,883 653 444

2371 Utility System Construction 3,324 858 1,485 3,866 1,501 2,155

4862 Pipeline Transportation of Natural Gas 94 3 0 139 12 0

Northwest Ohio


2111 Oil and Gas Extraction 1,584 38 48 13 17 27


2371 Utility System Construction 1,282 365 770 1,517 2,335 2,855

4862 Pipeline Transportation of Natural Gas 27 *** 0 31 0 0

Southeast Ohio


2111 Oil and Gas Extraction 407 61 46 753 307 275

2131 Support Activities for Mining 1,689 533 487 3,749 1,250 1,310

2371 Utility System Construction 687 259 220 1,396 920 1,661

4862 Pipeline Transportation of Natural Gas 78 *** 0 86 *** ***

Southwest Ohio


2111 Oil and Gas Extraction *** *** *** *** *** ***

2131 Support Activities for Mining 5 4 4 *** *** ***

2371 Utility System Construction 1,556 335 391 1,911 382 721

4862 Pipeline Transportation of Natural Gas *** *** 0 *** 0 0

West Ohio


2111 Oil and Gas Extraction *** 0 0 *** *** ***


2371 Utility System Construction 731 116 172 898 147 219

4862 Pipeline Transportation of Natural Gas *** 0 0 *** 0 0

Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Quarterly Workforce Indicators. ***Indicates data cannot be disclosed due to confidentiality restrictions or data quality standards.

Quarterly Workforce Indicators are available only at the four-digit NAICS level. Consequently, although these industry groups contain some employment from non-shale-related core industries, they help provide an indication of labor activity for these shale-related industries.

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Source: Ohio Department of Job and Family Services Office of Workforce Development Bureau of Labor Market Information*Data are preliminary and subject to revision.

COUNTY UNEMPLOYMENT RATES IN DECEMBER 2015(Not Seasonally Adjusted)

Unemployment Rates

Not Seasonally Adjusted Seasonally Adjusted

United States 4.8% 5.0%

Ohio 4.6% 4.7%

4.6% or Lower

4.7% to 4.8%

4.9% to 7.9%

8.0% or Higher

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Source: Ohio Department of Job and Family Services Office of Workforce Development Bureau of Labor Market Information*Data based on 2014 benchmark.

COUNTY UNEMPLOYMENT RATES IN DECEMBER 2014(Not Seasonally Adjusted)

Unemployment Rates

Not Seasonally Adjusted Seasonally Adjusted

United States 5.4% 5.6%

Ohio 4.7% 5.1%

4.7% or Lower

4.8% to 5.4%

5.5% to 6.9%

7.0% or Higher

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DEFINITIONS

OHIO LABOR FORCE STATISTICS*

Source: Ohio Department of Job and Family Services’ Bureau of Labor Market Information, Local Area Unemployment Statistics (LAUS)

The labor force and unemployment data are based on the same concepts and definitions as those used for the official national estimates obtained from the Current Population Survey (CPS). The LAUS program measures employment and unemployment on a place-of-residence basis and produces estimates using equations based on regression techniques. This method uses data from several sources, including the CPS, the Current Employment Statistics (CES) program and state unemployment insurance programs. The LAUS program does not produce estimates for any demographic groups.

Employment − A count of all persons who, during the week that includes the 12th day of the month, (a) did any work as paid employees, worked in their own businesses or professions or on their own farm, or worked 15 hours or more as unpaid workers in enterprises operated by members of their families, or (b) were not working but who had jobs from which they were temporarily absent. Each employed person is counted only once, even if the person holds more than one job. Included are the self-employed, unpaid family workers, agricultural workers and private household workers, who are excluded by the CES survey.

Labor Force − The population of people either working or looking for work, or classified as employed or unemployed.

Unemployment − A count of all persons age 16 and older who had no employment during the reference week (the week containing the 12th day of the month), who were available for work (except for temporary illness), and who had made specific efforts to find employment sometime during the four-week period ending with the reference week. This includes those waiting to be recalled to jobs from which they had been laid off.

Unemployment Rate − The number of unemployed workers as a percent of the labor force.

JOB DATA*

Source: Ohio Department of Job and Family Services’ Bureau of Labor Market Information, Current Employment Statistics

Each month the CES program surveys about 140,000 national businesses and government agencies to provide detailed industry data on employment, hours and earnings of workers on non-farm payrolls. This is a collaborative effort between the U.S. Bureau of Labor Statistics (BLS) and the states. CES produces a count of jobs, not of people.

Nonfarm Jobs − The total number of persons on established payrolls employed full- or part-time who received pay for any part of the pay period that includes the 12th day of the month. Temporary and intermittent employees are included, as are any employees who are on paid sick leave, on paid holiday, or who worked during only part of the specified pay period. A striking employee who works only a small portion of the survey period, and is paid, is included as employed. Those on payrolls of more than one establishment are counted in each establishment. Data exclude proprietors, self-employed workers, unpaid family or volunteer workers, farm workers, and domestic workers. Those on layoff, strike or leave without pay for the entire pay period, or who have not yet reported for work, are not counted as employed. Government employment covers only civilian employees.

QUARTERLY WORKFORCE INDICATORS

Source: U.S. Census Bureau

The Quarterly Workforce Indicators are data that can be examined by region, industry, gender and age of workers. These indicators are built on wage records in the unemployment insurance system and information from state Quarterly Census of Employment and Wages (QCEW) data.

*THESE DATA ARE SEASONALLY ADJUSTED. Seasonal adjustment removes changes in employment due to normal seasonal hiring or layoffs (such as holidays, weather, etc.).

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DEFINITIONS

QUARTERLY CENSUS OF EMPLOYMENT AND WAGES

Source: Ohio Department of Job and Family Services’ Bureau of Labor Market Information, Quarterly Census of Employment and Wages

Business Establishment − An establishment is the location of a certain economic activity, such as a factory, store, office or mine, which produces goods or services. It is typically at a single physical location and engaged in one, or predominantly one, type of economic activity. An employer may have one or more establishments.

Employment − Employment data include all employment covered under federal and Ohio unemployment insurance laws for each of the three months in a quarter. The employment count represents the number of full- and part-time employees who worked during or received pay for the payroll period including the 12th day of the month. The employment totals for each month are averaged for the quarter employment count. Those on paid vacations or paid sick leave are included. Workers temporarily earning no wages due to labor-management disputes, layoffs or other reasons are not reported as employed. Those on the payroll of more than one employer during the same reference week are reported more than once.

Wages − Wages include total compensation paid during a calendar quarter, including bonuses. Average wages are calculated by dividing total wages for a quarter by average employment in that quarter.

STAFFING PATTERNS

Source: Ohio Department of Job and Family Services’ Bureau of Labor Market Information

A staffing pattern is a list of the occupations most commonly found within a particular industry. This information comes from the biennial Long-Term Occupational Employment Projections data.

Annual Median Wage − The annual median wage earned by workers in an occupation, assuming 40 hours of work per week, 52 weeks a year. Wage data is derived from the annual Occupational Employment Statistics survey.

Typical Education, Training and Experience − To assist with career planning, the BLS has determined the typical education needed for entry into an occupation, years of commonly needed work experience in a related occupation, and typical on-the-job training needed to attain competency in the occupation. For definitions of available categories, see www.bls.gov/emp/ep_definitions_edtrain.pdf.

Typical Education Levels

• Lessthanhighschool• Highschooldiplomaorequivalent(HS/GED)

• Postsecondarynon-degreeaward(Post-HSCert.)

• Associate’sdegree

• Bachelor’sdegree

• Master’sdegree

• Doctoralorprofessionaldegree

Work Experience in a Related Occupation

• Fiveyearsormore• Onetofiveyears• Lessthanoneyear

Typical On-The-Job (OJT) Training

• Long-termOJT–Morethan12monthsOJTorcombined work experience and formal classroom instruction

• Moderate-termOJT–Oneto12monthsOJTandinformal training

• Short-termOJT–LessthanonemonthOJT

ONLINE JOB POSTINGS

Source: The Conference Board Help Wanted OnLine™ Data Set

The Conference Board HWOL data set provides real-time insight into the employment marketplace through the world’s largest database of online job ads. Job ads can be classified by industry, occupation, employer and geographic area. Data are analyzed for employment trends and to forecast economic conditions. The underlying data for The Conference Board HWOL are provided by Wanted Technologies Corporation.

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DEFINITIONS

NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS) CHANGES

NAICS, established in 1997, is reviewed for potential revisions every five years. The latest revision, in 2012, was implemented by BLS in the QCEW program with the release of first quarter 2011 data. As part of this revision, the NAICS code of only one shale-related industry was impacted: NAICS 331111 (Iron & Steel Mills). The NAICS 2012 structure eliminated NAICS 331111, combining it with NAICS 331112 (Electrometallurgical Ferroalloy Product Manufacturing) to form NAICS 331110 (Iron & Steel Mills and Ferroalloy Manufacturing).

Core Shale-Related Industries (NAICS):

Crude Petroleum & Natural Gas Extraction (211111); Natural Gas Liquid Extraction (211112); Drilling Oil & Gas Wells (213111); Support Activities for Oil & Gas Operations (213112); Oil & Gas Pipeline & Related Structures Construction (237120); and Pipeline Transportation of Natural Gas (486210).

Ancillary Shale-Related Industries (NAICS):

Fossil Fuel Electric Power Generation (221112); Natural Gas Distribution (221210); Water Supply & Irrigation Systems (221310); Sewage Treatment Facilities (221320); Water & Sewer Line & Related Structures Construction (237110); Highway, Street, and Bridge Construction (237310); Nonresidential Site Preparation Contractors (238912); Petrochemical Manufacturing (325110); Industrial Gas Manufacturing (325120); Iron & Steel Mills & Ferroalloy Manufacturing (3311101); Iron & Steel Pipe & Tube Manufacturing from Purchased Steel (331210); Mining Machinery & Equipment Manufacturing (333131); Oil & Gas Field Machinery & Equipment Manufacturing (333132); Construction and Mining (except Oil Well) Machinery and Equipment Merchant Wholesalers (423810); Industrial Machinery and Equipment Merchant Wholesalers (423830); Industrial Supplies Merchant Wholesalers (423840); General Freight Trucking, Local (484110); Specialized Freight Trucking, Local (484220); Specialized Freight Trucking, Long-Distance (484230); Lessors of Other Real Property (531190); Construction, Mining & Forestry Machinery & Equipment Rental & Leasing (532412); Engineering Services (541330); Geophysical Surveying & Mapping Services (541360); Testing Laboratories (541380); Environmental Consulting Services (541620); Remediation Services (562910); Commercial & Industrial Machinery & Equipment

Repair & Maintenance (811310); Administration of Air and Water Resource and Solid Waste Management Programs (924110); Administration of Conservation Programs (924120); and Regulation and Administration of Communications, Electric, Gas, and Other Utilities (926130).

WORKFORCE INFORMATION EXCHANGE

Source: Governor’s Office of Workforce Transformation

(http://workforce.ohio.gov/)

The Governor’s Office of Workforce Transformation deployed a statewide jobs forecasting tool to the top companies of predefined industry clusters. These companies represent small, medium and large businesses with at least 10 employees and at least one Ohio location. Through the forecasting tool, businesses identify the top five critical, difficult-to-fill job needs over the next one, three and five years. The information from the forecast tool is aggregated with current job postings and occupation projections from ODJFS to better align the in-demand jobs with education and training providers and Ohio’s workforce development system.

John R. Kasich, Governor State of Ohio

Cynthia C. Dungey, Director Ohio Department of Job and Family Services

January 2016

An Equal Opportunity Employer and Service Provider

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