New Study Sheds Light on the Massive Amounts of Clean-Burning, Job-Creating Natural Gas in the Keystone State
Tuesday, July 28th, 2009 | 0 Comments
Marcellus Shale production has created 29,000 PA jobs, $140 million in taxes in 2008 alone; Economic benefits, jobs threatened by U.S. Sen. Bob Casey, others
This week, researchers at Pennsylvania State University’s College of Earth & Mineral Sciences energy department released a study highlighted the overwhelmingly positive economic benefits of safe, environmentally-sound natural gas production in the Marcellus Shale region. While the study focused on the tens of thousands of jobs created in the Commonwealth from safe energy production, and the massive amounts of revue generated to state and local governments as a result, the report also drew attention to legislative threats that would obstruct this process.
The researches laid this out in their study:
- “Marcellus Shale development will pump $14.17 billion into the state’s economy in 2010 and create more than 98,000 jobs, while generating $800 million in state and local tax revenues, according to an economic study completed by the Pennsylvania State University for the Marcellus Shale Committee and the Pennsylvania House Natural Gas Caucus. The study notes a consistent increase in annual drilling and projects a $25 billion contribution to the Commonwealth’s economy in the year 2020. This level of activity would generate almost $1.4 billion in state and local tax revenue and create more than 176,000 new jobs.”
News-outlets from around the state were sure to take notice.
- Pittsburgh Tribune-Review: “Marcellus Shale estimated natural gas yield rises to nearly 500 trillion cubic feet … Penn State University geosciences professor Terry Engelder projects nearly 500 trillion cubic feet of natural gas could be produced from the entire formation, which is found in portions of five states, including most of Pennsylvania. Engelder published his latest estimate in the August issue of Fort Worth Oil and Gas Basin magazine. “If the natural gas from the Marcellus could be extracted on demand, the Marcellus alone would last the U.S.A. more than 19 years, producing 489 trillion cubic feet of gas,” Engelder said Monday. … The Penn State report found that all Marcellus Shale-related development statewide in 2008 generated $2.3 billion in economic impact, created more than 29,000 jobs and paid $140 million in state and local taxes.”
- Washington Observer Reporter: “Study: Marcellus Shale to be major economic generator … Marcellus Shale development will pump $14.17 billion into the state’s economy in 2010 and create more than 98,000 jobs, while generating $800 million in state and local tax revenues, according to an economic study completed by Pennsylvania State University for the Marcellus Shale Committee and the Pennsylvania House Natural Gas Caucus. According to a news release issued Monday, the study notes a consistent increase in annual drilling and projects a $25 billion contribution to Pennsylvania’s economy in the year 2020. This level of activity would generate almost $1.4 billion in state and local tax revenue and create more than 176,000 new jobs.”
- Pittsburgh Post Gazette: “A Penn State University study released yesterday said Mr. Rendell’s proposed tax on the extraction of natural gas would hurt development of the natural gas industry in the state. … “The high level of drilling activity in Pennsylvania is partially a result of relatively lower taxes” compared to other states, said [Rep. Tim Solobay, D-Canonsburg], who has much natural gas drilling under way in his home county of Washington. “This report sends a strong warning that if we impose a severance tax on natural gas production, we will miss out on this opportunity.” The two legislators are part of a 60-member House Oil and Gas Caucus, which opposes the proposed tax at the wellhead on natural gas extracted from areas of Marcellus shale, which cover up to three-fourths of the state. … Mr. Solobay claimed that by next year, up to 98,000 new jobs in the gas industry could be created.”
The independent Penn State academics concluded this about legislation that the state’s junior U.S. senator, Bob Casey, and Congressman Pat Murphy (D-PA), are advancing:
- “Proposals to regulate hydraulic fracturing under the federal Safe Drinking Water Act pose yet another serious threat to the development of the Marcellus Shale and other unconventional gas sources.“
- “An even more ominous proposal to the development of the Marcellus Shale and for that matter the domestic oil and gas industry is the proposal that hydraulic fracturing be regulated under the federal Safe Drinking Water Act. A study by HIS Global Insight, found that this policy would reduce gas production by 4.4 TCF, or 22 percent, and reduce oil production by 400,000-b/d, or 8 percent, by 2014. There is little question that this type of legislation would accomplish little in terms of protecting potable freshwater but would be disastrous in terms of the domestic oil and gas industry, raise prices for gasoline and natural gas, and ultimately derail any efforts to address the need to reduce carbon emissions.“
With more than 8 percent of Pennsylvanians out of work, and with the state facing a massive budget shortfall that may well leave more than 30,000 state employments without a paycheck, why would Messrs. Casey and Murphy want to threaten the top job-creating and tax revenue generating industry in their state? Write them, and other members of Congress, and tell them to not stand in the way of environmentally-safe energy production that will create good-paying jobs here at home.
Tags:
