David Mustine Managing Director
The Ohio Advantage Competitive Business Climate • Budget surplus • 3rd in U.S. for lowest tax rates on new capital investment (E&Y study) • Most improved business climate in the U.S. (Chief Executive’s 2013 CEO Survey) Logistical Advantage • Get your people and product where you need them quickly and efficiently • Within 600 miles of 60% of all U.S. and Canadian manufacturing • World-class transportation infrastructure (road, rail, water, and air) Productive Workforce & Targeted Training • 6 million labor force • Focused on education and training initiatives • Aligning supply of talent to forecasted demand
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Ohio’s Strong Business Climate • 7th most populous U.S. state with 11.5 million Ohioans • 8th largest Gross State Product in the U.S. ($484 Billion GSP)
Strong Financial Position
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Utica Shale Update
Current YE 2012
Horizontal Permits Issued: 927 Total Wells Drilled: Wells Producing: Rigs in State*:
577
485 199
164
45
33
30 *Baker Hughes As of 20 October 2013
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Pipeline & Midstream Projects: Ohio Utica Shale Company
Location
Operations
Estimated Investments
MarkWest
Harrison & Noble counties
G, P, & F
$1.5 Billion
M3 Midstream Partnership
Columbiana & Harrison counties
G, P, & F
$1.2 Billion
NiSource
Eastern Ohio
G&P
$390 Million
Dominion/C aiman*
Eastern Ohio
G&P
$800 Million
Spectra*
Northern & Eastern Ohio
Natural Gas Pipeline
$430 Million - plus
Enterprise*
Eastern, Central, & Southwestern Ohio
Ethane Pipeline
$1 Billion-plus
*Announced Gathering/pipeline – Processing – Fractionation 5
Pipeline & Midstream Projects: Ohio Utica Shale Company
Location
Operations
Estimated Investments
Kinder Morgan & MarkWest
Tuscarawas processor
G&P
TBD
Bluegrass/ Williams and Boardwalk
16 Ohio counties
G
$ 1 Billion
PVR Partners
Belmont, Jefferson and Harrison
G – lean
$125 - $150 million
Total of $6.5 billion of projects. *Announced Gathering/pipeline – Processing – Fractionation 6
Midstream Map
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Ohio’s Downstream Advantage • Global polymer industry leader • World class university-based research and strong engineering programs • Four refineries in Ohio • Utica shale provides low-cost and reliable supply of natural gas and natural gas liquids • Possible links to specialty chemicals
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Ohio’s Engineering Advantage Ohio Ranks 8th nationally in total Engineering degrees
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The Value Chain Natural Gas Liquids Ethane/Propane/Butane Ethylene/Propylene/Butadie ne Plastics/Synthetic Rubber
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JobsOhio’s Downstream Strategy
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Focus on opportunities that build on our existing strengths of adding value to base chemicals and polymers. Link to other sectors such as automotive and aviation.
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Recruit companies that add value to gas streams. Target major chemical and products companies, boiler conversions, CNG/LNG vehicles and gas-fired generation.
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Former BASF executive providing technical advice.
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Workforce development – OC&TC. Partnership with Ohio’s Engineering Deans.
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