Oil and Gas as a Driver of the Regional Economy: Updates

The economic trends in Northeast Ohio (NEO) over the last 20 years are typical of the Midwest region, with a positive increase in output outpaced by the state of Ohio, and the United States. The double recessions of 2001 and 2007-2009 show a deeper output decline in NEO than in comparable Midwest regions and the United States. Traditionally, industries with high regional specialization that have a competitive advantage and drive regional economies are called economic base industries. Groups of Regional Industry Drivers (GRIDs) are part of the economic base of a region. The Oil & Gas GRID accounts for less than 1% of total NEO employment but 3% of overall output & 7% of GRIDs output ($6 billion). It is a fast-growing and emerging economic base, with double-digit growth in output, growing specialization, and one of the highest employment multipliers. However, the industry cluster needs to increase in size and scale to impact overall regional performance.