.png){kind=small}
The new president of the Marcellus Shale Coalition outlined the multiple benefits of the natural gas industry in Pennsylvania and the Southwest region during the recent State of the Economy event, held annually by the Washington County Chamber of Commerce.
Jim Welty, who assumed leadership of the MSC in January following the retirement of David Callahan, highlighted the importance of unconventional natural gas development to the state and region’s economy. He noted that Pennsylvania is the second-largest natural gas producer, behind only Texas, and provides 18% of the country’s natural gas.
The state has 11,500 producing wells in 36 of its 67 counties, and Welty noted that one-third of Pennsylvania’s gas production comes from Washington and Greene counties. A MSC study conducted in 2022 noted that 123,000 jobs are supported by the industry, resulting in $41 billion in economic activity. The industry also has paid more than $6.3 billion in royalties to landowners, more than $5.8 billion in taxes, and impact fees to the state and local governments that totaled $179 million in 2023 alone.
He also said that the increasing use of natural gas for electric generation has produced environmental benefits, including a 46% reduction in CO2 emissions, as well as lower volatile organic compound emissions. Natural gas produces only about half the emissions that coal does, however some environmental groups are still critical of its use, pushing for a transition to clean, renewable sources of energy. In addition, Appalachian Basin operators have to lowest methane intensity, which gauges how much methane gets into the atmosphere, in the U.S.
Welty also noted that Pennsylvania is the largest exporter of electricity in the nation, providing power to neighboring states through the PJM Interconnection regional grid. He spoke about the challenges PJM is facing in bringing new generation online to replace retiring, coal-fired plants at the same time demand for electricity is spiking. He said that no new natural gas-fired power plants have been built since 2018 and attributed that to state policy efforts to cap carbon emissions that would make them more expensive to operate. He noted that there are almost no proposed natural gas projects in PJM’s queue for approval.
He also pointed to continuing challenges for the natural gas industry that include delays in permitting of pipelines to take gas from the Marcellus to other parts of the country, and renewed interest in increased setback distances from unconventional wells to buildings, which he said could remove the vast majority of acreage from development.
The event also featured Russell Mills, Pittsburgh Branch regional director of the Federal Reserve Bank of Cleveland, who spoke about the economic conditions facing the U.S., state, and Southwest Pa. region. He noted that Washington County is one of the “success stories” in the region, seeing a slight population gain at the same time the population in the entire Pittsburgh metropolitan area is dropping due to more deaths than births. He also noted that unemployment is low in the region, and Washington County has shown 1.4% growth in employment since 2020.
The speakers indicated that Washington County continues to have a positive future in the region, and that the robust energy industry is a part of that strength.
Comments