Draft Energy Plan Released by Gov. Paterson a Step In the Right Direction for New York
State’s Democratic Governor Puts Forth New Blueprint for Leveraging Hydraulic Fracturing Technology to Generate Jobs, Revenue, Opportunity for NY
Washington, DC – As the state of New York gets set to release a series of new rules aimed at promoting a comprehensive, commonsense energy policy for its residents, the Marcellus Shale formation — and the trillions of cubic feet of clean-burning natural gas it holds — remains at the forefront of the debate. Earlier this week, Gov. David Paterson (D) released a draft energy plan highlighting, among many things, the economic importance of safely developing the abundant natural gas resources along the state’s Southern Tier.
Energy In Depth policy director Lee Fuller issued the following statement:
“Governor Paterson’s initial energy proposal is a step in the right direction. He rightly acknowledges that the Marcellus region offers enormous economic opportunity for his state and its citizens at a time when it’s needed most, and also notes the important role that hydraulic fracturing will play in safely and responsibly delivering those natural gas resources to the people who need them.
“The governor also highlighted the fact that New York has lost more than 200,000 jobs over the last year, producing an unemployment rate higher now than it’s been in 15 years. His report comes just weeks after a study found that natural gas production in Broome County could create 16,000 new jobs, nearly $800 million in wages, and more than $15 billion in economic activity – every bit of it made possible thanks to the safe and steady deployment of hydraulic fracturing technology.”
“It cannot be overstated; the Marcellus Shale formation holds tremendous economic potential for New York. Increasing the production of this clean-burning and abundant natural resource will improve the economy, result in increased tax revenues and jobs, and improve New York’s and America’s energy independence.”
Key excerpts from Governor Patterson’s 2009 draft energy plan:
- The State’s natural gas production is expected to more than double from 55 billion cubic feet in 2007 to about 146 billion cubic feet, representing about eight percent of the State’s natural gas requirements by 2020. Although the addition of Marcellus Shale production is expected to result in a significant increase in New York production over the planning period, the natural gas model reflects a conservative Marcellus Shale natural gas production level to account for potential permitting and production difficulties related to horizontal drilling, and hydraulic fracturing. If these difficulties are minimized, Marcellus production levels could potentially be much higher.
- This resource presents an opportunity for the State to unlock substantial economic value while helping to achieve a key energy policy objective of importance to the State’s energy security. Natural gas extraction would create jobs, create wealth for upstate land-owners, and increase State revenue from taxes and land-owner leases and royalties. Development of State-owned lands could provide much needed revenue relief to the State and spur economic development and job creation in economically depressed regions of the State. Furthermore, the increased supplies of natural gas…will place downward pressure on natural gas prices, thereby potentially lowering the cost of energy for New Yorkers.
- Horizontal well completions combined with hydraulic fracturing are likely to provide the best means for producing economic volumes of natural gas.
- EID Blog: PA Congressman Explains Critical Role Hydraulic Fracturing Can Play in State’s, Nation’s, Economic Future
- EID Blog: Regulators, County Govt. Chiefs, The Voice of Business: Fracking is Well-Regulated, Should be Left to States
- Report: Potential Economic and Fiscal Impacts from Natural Gas Production in Broome County, New York
- Report: An Emerging Giant: Prospects and Economic Impacts of Developing the Marcellus Shale Play (Penn State University)
- GWPC Study: State Oil and Natural Gas Regulations Designed to Protect Water Resources