Baker Hughes Inc. is planning to open a regional headquarters in Massillon, OH, in 2013 to take advantage of the business opportunities generated by the growing shale gas resources in the Utica and Marcellus formations.
The Houston-based oilfield services provider said it plans to hire about 700 people, including scientists, engineers and mechanics, to staff labs and workshops. The $64 million facility would have an estimated annual payroll of about $46 million.
Baker is taking advantage of a newly created 65% state tax credit, which is to extend over a seven-year period, to build the facility, said the Ohio Department of Development. The tax credit was approved late last month.
During a conference call in January, Baker CEO Martin Craighead said the company planned to invest in "seven new major facilities within our North American land operations, each in unconventional basins [see Shale Daily, Jan. 25]. In addition, we plan to accelerate our investments in the pressure pumping supply chain to lower the high costs associated with freight, etc."
A study published by energy, economics and geology experts from Cleveland State University, Ohio State University and Marietta College's Department of Petroleum said gas and oil drilling in Ohio alone could create 65,000 jobs and add nearly $5 billion to state coffers by 2014 (see Shale Daily, Feb. 29).