EID's Shawn:

"Banks are becoming the newest industry forecasting the significant, positive impact that Utica Shale/Point Pleasant development has had – and will continue to have- in Ohio.

These impacts range from growing Ohio’s Gross Domestic Product over $100 billion in two years, to being responsible for dropping Ohio’s unemployment rate at a faster pace than the national average.  Any way you look at it, oil and gas development is on pace to revitalize Ohio’s economy.

As many know, shale development is responsible for employing nearly 39,000 people since it’s inception.  Not only has there been significant growth in the employment sector, with considerable growth on sales tax receipts in the shale-producing region, banks are starting to look at Ohio as the new hot prospect for investment.

Recently, at the Ohio Bankers League’s annual economic summit in Columbus, U.S. Bancorp Regional Investment Director Jim Russell told the audience that Utica Shale/ Point Pleasant development has the potential to be an economic home run for Ohio if legislators and the administration can remain rational in their regulatory and tax proposals to keep Ohio attractive for development.

I think we’re in a pretty good position here to move the ball forward just a little bit – U.S. Bancorp Regional Investment Director Jim Russell- 2/13/13, Columbus Business First

Sun Trust Bank reported that its confidence has grown in the Utica/ Point Pleasant after finding that wells in the region experienced high initial production rates, limited expected depletion, improved spacing, and declining wells costs.  Although the well costs are declining, they are still costing operators around $10 million per a single lateral well.  The report concluded that infrastructure is still a bottleneck in Ohio, but progress is noticeable.

While Sun Trust makes a good point that the development in the Utica/Point Pleasant remains bottle necked due to lack of infrastructure put into place, it remains a very promising play if the economics continue to work out.

As both of these banks make strong statements about the prolific potential of oil and gas development in Ohio, Seeking Alpha, a financial analysis website, echoes their sentiments and increases the excitement Ohioans should have about development."

READ THE REST: http://www.eidohio.org/banks-bullish-on-utica/