With the potential to infuse more than $14 billion into Pennsylvania’s economy in 2010 and creating more than 98,000 jobs, Rep. Brian Ellis (R-Butler), co-chairman of the House Oil and Gas Caucus, today touted a study conducted by the Pennsylvania State University that indicates the tremendous financial benefit that natural gas drilling in the Marcellus Shale formation will provide to Pennsylvania.

 

“At a time when people are facing layoffs as a result of the recession, the natural gas industry is standing by ready to provide thousands of family sustaining jobs for the people of Pennsylvania,” Ellis said. “We have an opportunity to put thousands of people back to work in a field that will grow exponentially over the next decade.”

 

The study indicates a consistent increase in annual drilling and projects a $25 billion contribution to the Commonwealth’s economy in 2020. This level of activity would generate nearly $1.4 billion in state and local tax revenue and would create more than 176,000 new jobs during this period.

 

“The findings from Penn State bring exciting news that will positively impact nearly every sector of Pennsylvania’s economy,” Ellis said. “We have a once-in-a-generation opportunity to improve the Commonwealth’s economy and our nation’s energy future by embracing and supporting the development of clean-burning natural gas.”

 

Ellis noted that according to the study, natural gas production had a $2.3 billion direct impact on Pennsylvania’s economy in 2008 – adding more than 29,000 new jobs and $240 million in state and local tax revenue. More than 30 percent of these revenues have remained at the local level.

 

In addition, by 2020 the industry will contribute a cumulative economic impact to the Commonwealth of $265 billion along with nearly $15 billion in state and local tax revenue.

 

Ellis pointed out though, with the governor’s proposal to impose a natural gas severance tax on natural gas drilling companies, this would result in the loss of $1.4 billion in total tax revenue between now and 2020.

 

“This industry is already being taxed by the state government,” Ellis said. “The governor’s plan would put the brakes on the growth of the natural gas industry resulting in a negative impact our economic standing.”

 

The Penn State study estimates that the Marcellus Shale formation may contain 2,445 trillion cubic feet of natural gas reserves – enough to provide the country with natural gas for more than 20 years.

 

The study was conducted by Dr. Timothy Considine, School of Energy Resources professor of Energy Economics with the Department of Economics and Finance at the University of Wyoming; Dr. Robert Watson, associate professor emeritus of Petroleum and Natural Gas Engineering and of Environmental Systems Engineering at the Pennsylvania State University, and chairman of the Technical Advisory Board for the Bureau of Oil and Gas Management of the Pennsylvania Department of Environmental Protection.

 

“I applaud both of these gentlemen for their work on compiling data and studying this issue,” Ellis said. “Their research proves to me, and to the members who support expansion of the natural gas drilling industry, that Pennsylvania stands ready to be the leader in natural gas extraction.”

 

(724) 283-5852

(717) 787-7686

Contact: Tim Eller

House Republican Public Relations

teller@pahousegop.com

(717) 260-6242

Member site: RepEllis.com

Caucus site: PAHouseGOP.com