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Economics

The natural gas and petrochemical industry has not provided economic benefits to Ohio Valley residents.

JobsOhio, Ohio's economic development arm, has granted PTTG over $70 million for site cleaning and preparation. The plant is not even guaranteed to be built or last long. The company's financial partner - Daelim Chemical USA of South Korea - withdrew their investment in July 2020 and in February 2021, PTTG announced an indefinite delay on construction until they secure more funding. Economists and financial analysts warn in this report, and also here, that there are many forces currently working against PTT Global, including the current economic slow-down, the tanking oil and gas industry, and the world-wide decrease in demand for plastic products.

 

A 2017 economic impact study from the American Chemistry Council paints a glowing picture of jobs growth and economic development accompanying a buildout of petrochemical facilities in Appalachia. But, we’ve been here before. We were told the same thing about the Appalachian natural gas fracking boom, which has been a mixed bag at best. Counties such as Belmont and Jefferson in Ohio have seen employment losses of greater than 10 percent. In most places touched by the fracking boom, the game hasn’t changed and, in some cases, it’s gotten noticeably worse. A recent report from the Ohio River Valley Institute explains the faulty economic studies the industry peddles in order to convince political officials to invest in a dying industry.

Other recent studies have outlined the long-term economic impact of the fracking industry in the Ohio Valley (see "Ohio River Valley Institute Reports"). In sum, the region has suffered an economic downturn as residents flee and job growth declines, all while out-of-state companies make record profits. Our leaders should be investing in renewable, sustainable technologies and industries and putting support towards small businesses, education, health care and agriculture -- not this boom-bust industry that is not guaranteed to last.

Ohio River Valley Institute Reports

The Institute for Energy Economics and Financial Analysis explains how fracking has been an economic "bust" and how  "green" energy infrastructure can supersede it.

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Read More:

INSTITUTE FOR ENERGY ECONOMICS AND FINANCIAL ANALYSIS

INSTITUTE FOR ENERGY ECONOMICS AND FINANCIAL ANALYSIS

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