Appalachian Basin

Marcellus Shale Brings Billions to Pennsylvania GDP While New York’s Oil and Gas Contributions Decline


The Marcellus Shale represents an invaluable source of natural gas, stimulating state and national economies, creating jobs, and significantly reducing the United States’ dependence on foreign oil.

As the above graphic shows, development in the Marcellus Shale has provided enormous contributions to the state Gross Domestic Product (GDP) in Pennsylvania.  Meanwhile, New York Governor Andrew Cuomo’s decision to ban shale development in his state is having a negative economic impact.

According to data from the U.S. Bureau of Economic Analysis, since the first well was hydraulically fractured in Pennsylvania in October 2004, oil and gas contributions to the state’s GDP have increased over 900 percent as of 2013. Over that same period of time, New York’s GDP contribution from oil and gas decreased more than 20 percent. While Pennsylvania received over $5.5 billion worth of GDP contribution from oil and gas in 2013, New York only collected $70 million.

New York’s ban on development is even more confounding considering just how much the state relies on natural gas as an energy source. Energy In Depth previously reported that, according to the state’s 2015 energy plan, “Natural gas represents 1,247 TBtu, or about 34 percent of New York’s total primary energy use.” The U.S. Energy Information Administration found that as of 2013, New York ranked fourth among all states in natural gas consumption.  It’s no surprise that New York City has had the cleanest air in decades, as their natural gas consumption increases.

Hydraulic fracturing has been praised by President Obama as he described in his 2013 State of the Union address,

“We produce more natural gas than ever before – and nearly everyone’s energy bill is lower because of it.”

The president has also called for increased natural gas production,

“I would rather us, with all the safeguards and standards that we have, be producing our oil and gas rather than importing it, which is bad for our people, but also potentially purchased from places that have much lower environmental standards than we do.”

States like Pennsylvania are simultaneously boosting their economies, all while reducing our national dependence on foreign oil. States that oppose hydraulic fracturing like New York must weigh whether continued bans on the production of natural gas, are worth forgoing all the economic advantages.


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