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A Longshot Again: What Gov. Kasich's Gas and Oil Tax Could Mean To The Industry

photo of natural gas drilling pad
DAVID GAYLOR
/
SHUTTERSTOCK
The Ohio Oil and Gas Association's Shawn Bennett said that simply suggesting a severance tax increase could be a bad idea.

Leaders in the Ohio House have already said they’re not interested in . But Gov. John Kasich is still .

Gov. John Kasich’s budget would to 6.5 percent. That’s a significant increase from the current rate of a few cents per 1,000 cubic feet.

says Ohio is competing with other states to attract drillers and simply suggesting a tax increase can be detrimental.

“You have to look at where you’re getting the best return on your investment right now; we have to recognize that the Utica is a shale play it is not the only shale play. So you can’t treat as if this is the only game in town,” he said.

As they have for years, opponents argue now is not the time to raise the severance tax, given the low prices on oil and gas.

Gov. John Kasich has said he’s worried that raising the severance tax will become a voter-initiated ballot issue if lawmakers don’t act. 

Andy Chow is a general assignment state government reporter who focuses on environmental, energy, agriculture, and education-related issues. He started his journalism career as an associate producer with ABC 6/FOX 28 in Columbus before becoming a producer with WBNS 10TV.