Single County, In Single U.S. State, Expected to Generate 16K Jobs, $15.3 Billion in Output Thanks to Hydraulic Fracturing
New report details staggering economic impact that Marcellus Shale natural gas development can have on Broome County, New York
WASHINGTON – A single rural county in a single U.S. state holds enough clean-burning natural gas to leverage the creation of 16,000 good-paying jobs, $793 million in wages, and $15.3 billion in total economic output according to a study commissioned at the request of legislators in Broome Co., New York, and released this week.
The report, compiled by researchers from the University of North Texas, who had previously studied the Barnett Shale, comes on the heels of a Penn State study also released this week finding that for every Marcellus Shale well developed in the Pennsylvania, $6.2 million in economic impact could be realized.
The Broome Co. report suggests the figure may be even higher in the state of New York, with gross revenues exceeding $9.3 million per well.
Energy In Depth policy director Lee Fuller issued the following statement:
“Natural gas helped transform the economic landscape of New York in the 19th century, and as this report makes plain, natural gas from the Marcellus Shale is poised to transform the state’s economy once again in the 21st century.
“At the center of this all this excitement stands a critical energy technology known as hydraulic fracturing. With it, opportunities for new jobs, new revenues, and greater security abound. Without it, those opportunities will be lost. It’s our hope that regulators and legislators in New York do their homework on this critical technology, and put forth a plan that allows it to be safely deployed for the benefit of their constituents.”
Among the report’s key findings:
- “Assuming well completion in 2009 and production commencing in 2010, we estimate gross revenues at about $9.3 million per well during the first 10 years of production.”
- “If the number of developed gas wells in Broome County reaches 4,000 … drilling expenditures will total $14 billion and total local economic activity will rise to $15.3 billion.”
- “Labor income from salaries, wages and benefits will increase by almost $793 million from the creation of over 16,000 person-years of employment.”
- “Property income related to gas well drilling activities will rise by $1.2 billion and tax revenues will increase by $44 million and $41 million during the period of drilling activity for state and local taxing entities, respectively.”
- “[B]ecause the Millennium Pipeline passes through Broome County, local producers will receive a ‘premium’ when delivering gas to the New York City Gate.”