Business Leadership to Build a Better Ohio

Energy

Energy Competitiveness

The BRT believes energy can have a transformative impact on Ohio's economy and quality of life, and has identified energy competitiveness as the Roundtable's top priority for 2016-17. Under the leadership of BRT Chairman and Marathon Petroleum Corporation Chairman, President and CEO, Gary Hemminger, and the BRT's CEO-led Energy Steering Committee, with support from McKinsey & Company, the BRT engaged in a year-long effort to improve Ohio's energy competitiveness.


The resulting report, "Improving Ohio Energy Competitiveness", considers energy in a comprehensive way – from natural gas, liquids and oil to Utica shale and power and renewables. Consistent with the BRT's approach to any major policy issue on which it engages, our energy competitiveness work is supported by a comprehensive fact base, benchmarking, analysis and scenario modeling.


Improving Ohio Energy Competitiveness report

click here to view

Technical Fact Base for the Energy Competitiveness report

click here to view


Energy competitiveness is determined by the supply of natural resources and the methods used to generate and distribute electricity and gas to consumers. With new forces and opportunities reshaping our energy landscape, BRT CEOs came together to understand what these changes mean for the state and how we can work together to ensure that Ohio is energy competitive as we move forward.


Regarding natural gas resources, Ohio has an enormous opportunity in the deep Utica basin, as well as a portion of the Marcellus shale. Ohio's shale gas reserves can generate tremendous economic value and significantly boost the economy, much like has occurred in Pennsylvania's Marcellus basin, Louisiana's Haynesville basin and Texas' Eagle Ford basin.


Across the nation, the electric power landscape is changing rapidly, as states generate electricity from more diverse sources and rely more on natural gas and renewables than on traditional coal plants. Renewables in particular have grown dramatically in capacity and output, in part due to regulations and subsidies, but also as their costs have declined and made them a competitive alternative to conventional technologies in many parts of the nation. In Ohio, we expect renewables to continue to grow as a source of power generation, equal to nuclear by 2030. As the energy landscape continues to change, opportunities will develop in shale gas, and shifts will occur in power demand, reshaping the generation, transmission and distribution of electricity.


In Ohio, shifts in the structure of the electric power market magnify the challenges and opportunities. Ohio has moved from a regulated state to a restructured state, allowing great customer choice. Simultaneously, Ohio has PJM, a regional energy system that regulates generation and transmission across 13 states.


The evolution of both the power and gas sectors in Ohio will bring market, infrastructure and regulatory challenges that Ohio must address to capture the full value of energy-related opportunities.


The "Improving Ohio Energy Competitiveness" report outlines the actions we believe Ohio business leaders, policymakers and stakeholders must take to move our state forward. To respond to the changing the energy landscape and position our state as an energy leader, Ohio will need to act on six fronts:


  • Maximize Ohio's natural gas advantage
  • Meet the evolving needs of the power market
  • Build the required support infrastructure
  • Improve the ease of doing business in the energy sector
  • Ensure adoption of market-based renewables and advanced energy technologies
  • Drive economic benefits from energy competitiveness


The BRT's energy competitiveness report serves as a beginning framework for serious, fact-based dialogue that will bring progress, change and, ultimately, economic growth and improved quality of life in Ohio.

Ohio Business Roundtable MEMBER COMPANIES

View All