Economic Benefits of Fracking
From Americans for Tax Reform:
Marcellus Shale Economic Impact, Bigger Than We Thought
Penn State recently finished its third study documenting the development of the Marcellus Shale and its economic impacts on Pennsylvania and the United States. The report shows that the Keystone State is on track to be adequately prepared with enough natural gas to power everything from a home, to an office building, to consumers in other states. A summary of the report’s findings are as follows:
A Lucrative Investment – private companies are on track to continue investing billions of dollars in Pennsylvania’s Marcellus natural gas. According to the study, $5.3 billion was spent on drilling activities in 2009, an estimated $11.5 billion will be spent in 2010, and on pace to $12.7 billion in 2011.
Increases GDP, Jobs, and Revenue - $11.5 billion spent in 2010 generated $11.2 billion in additional value. The employment in the state jumps to +336,000 jobs for 2011-2012. And $2.6 billion generated in additional tax revenues during 2011-2012.
This dramatic increase in Marcellus drilling greatly surpasses conventional gas wells. Penn State found that natural gas production from the Pennsylvania Marcellus will average 3.5 billion cubic feet (BCF) per day during 2011 and will most likely surpass 6 BCF during 2012. When at the same time approximately 0.5 BCF per day of production is generated from conventional gas wells.
That’s not all. This study projects that Marcellus gas production could expand to over 17 BCF a day by 2020. Lastly, the study finds Marcellus Shale will greatly increase domestic energy production, and reduce government deficits.
Despite the good news, gas development costs in Pennsylvania are relatively higher than other regions due to more regulations. We all must do our part to make sure the natural gas industry in Pennsylvania lives up to the expectation s cited in this study. So, please contact Pennsylvania’s legislative leaders to let them know you support the production of Marcellus Shale and that overregulation is severely holding back an industry that matters to us all and that calls for a punitive tax on the industry need to be rejected.