Consumer Energy Alliance Mid-Atlantic Director Writes to Patch

In response to Marcellus Shale discussions on this website, the Baldwin-Whitehall Patch received the following email on March 27. Other than addressing some minor grammatical issues, the wording seen below was written as is.

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The new, energy-based economy that is emerging in Pennsylvania and several other neighboring states is seen as a form of life support for some of the most economically depressed areas of the country. For the Rust Belt region, which lies atop an abundant formation of natural gas known as the Marcellus Shale, the jobs supported by production of this clean, cost-efficient fossil fuel are reversing a decades-long economic downturn. Though unemployment still hasn't come down to its pre-recession levels, the economic benefits already seen in many areas of the state have spotlighted the Keystone State's ability to become a national energy producer.

Already, shale gas has had a transformative impact across the nation by creating tens of thousands of jobs across numerous sectors. In fact, industry analysts predict that shale gas currently supports more than 600,000 American jobs today, and by 2015, shale gas is predicted to support nearly 870,000 jobs and contribute $118.2 billion to the United States' gross domestic product. Additionally, a recent study by PricewaterhouseCoopers predicts that responsible shale-gas development could add approximately one million jobs by 2025, encourage greater investments in U.S. plants and reduce U.S. manufacturers' natural-gas expenses by as much as $11.6 billion annually through 2025.

Since the Marcellus Shale is considered the largest shale deposit in the United States—and the second-largest natural-gas field in the world—it is good news that Pennsylvania's share of the Marcellus Shale formation is nearly 60 percent. In fact, a Natural Resource Economics, Inc., study found that, if the formation were aggressively developed, its production could generate nearly $25 billion per year and create more than 280,000 jobs by 2020. This is in addition to approximately 214,000 direct and indirect existing jobs the Pennsylvania Department of Labor & Industry calculated as part of Marcellus Shale-related industries.

With recent announcements of new manufacturing plants opening up across the state and the news that Shell is looking at building the first petrochemical plant in the region, it is no wonder that many see the responsible development of shale-gas resources as a "game-changer" for the Keystone State that will boost economic output and create high-wage, high-skilled jobs in Pennsylvania and throughout North America. 

Fortunately for Pennsylvanians, this good fortune is widespread and multifold.  From shale gas creating double-digit growth in the Pennsylvania hotel industry to formerly cash-strapped family farmers emerging as entrepreneurs, the growth observed in Pennsylvania is largely attributable to the production of this resource. Our steelmakers—an industry formerly nearing extinction—are now thriving thanks to a steady increase of pipeline and other equipment orders to support the growing natural-gas industry. And on the supply side, struggling consumers and small businesses are enjoying much-needed relief with more affordable and stable energy. Pennsylvanians have paid 70-percent less for natural gas since 2008, and last year, Marcellus-gas production saved residents an estimated $633 million in utility costs, or about $200 for every family of four. This is particularly welcome news for low-income families that spend nearly a quarter of their after-tax income on energy. 

Given this extraordinary news, it is no wonder that a poll of Pennsylvania voters conducted by Quinnipiac University found 62 percent believe the economic benefits of drilling for natural gas in the Marcellus Shale outweigh environmental concerns.

Unfortunately, if Pennsylvania gets bogged down with too much red tape, much of the aforementioned progress would be slowed through reduced investment in the state, lower wages and reduction in job growth, or a reduction in spending on things like road improvements. President Barack Obama himself has paved the way for bipartisan action to ensure the continued responsible development of these resources, noting the "enormous potential" of "the shale under our feet" in a speech earlier this year.

Let's hope Pennsylvania lawmakers follow suit and arrive at a sensible Marcellus Shale drilling policy so the Keystone State can lead the way for an American energy revolution that creates jobs, fuels economic growth and meaningfully reduces our dependence on energy imported from overseas.

Mike Mikus (mmikus@consumerenergyalliance.org), Director, Consumer Energy Alliance Mid-Atlantic

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