While the Marcellus Shale – considered to potentially be the world’s second largest natural gas – does not underlie southeastern Pennsylvania, safe, tightly-regulated natural gas production continues to have a cascading impact across the entire Commonwealth – and beyond.

For small businesses and consumers – struggling in the face of continued economic hardships and historic unemployment – expanded American natural gas development from the Marcellus Shale means more jobs, lower energy costs and a stronger economy.

A series of additional proof points are laid out in a Lehigh Valley Business story today, highlighting the undeniable benefits tied to responsible American natural gas development:

  • The impact of the Marcellus Shale revolution is beginning to spread throughout the plastics and specialty chemicals manufacturing industry. … Other businesses that have been using natural gas all along are flourishing with an increased workforce, cost savings across the board, and a newfound confidence that they will be able to stay competitive in the market well into the future.
  • Last December, Geo Specialty Chemicals Inc. … made the conversion from #6 low-sulfur fuel oil to natural gas and, according to plant manager Brad Osborne, the $1.5 million project has created a cost-savings to the Indiana-based company of $2.5 million to $3 million a year. “The energy savings realized from the conversion from #6 low-sulfur fuel oil to natural gas has allowed us to remain in business and secure the jobs of over 50 employees,” Osborne said. “Given the global competition in the paints and coatings industry, without this timely conversion to natural gas, we would not be here today. It is that significant.”
  • At Remcon Plastics Inc. in Reading, Chief Operating Officer Rich Maguire said that the revenue picture at the plastics plant has been significantly improved in the last few years – and it’s mainly due to the Marcellus Shale project and natural gas drilling.
  • He said that 2009 was one of the company’s toughest years, but when the Marcellus Shale project took off, it kept the Berks County plant operating. And that meant that employees could keep their jobs. “I feel that the project is an extremely good thing,” said Maguire. “It has dropped our company’s purchasing expense by 30 percent, which was not a possibility back in 2009…it has definitely enabled us to maintain our facility here and to remain competitive among our rivals.”
  • Remcon manufactures plastics that are created as a byproduct of extracting natural gas. All machines at the Reading plant use natural gas as their largest component. Maguire sees natural gas as a cleaner energy and hopes that the future brings natural gas that can be converted to diesel fuel.
  • Remcon President Pete Connors confirmed that his company’s costs have “dramatically gone down due to the Marcellus Shale and my raw material costs in the next couple of years are going to continue to drop.” … He said Marcellus Shale gas will create a “cascading effect.” For instance, as the cost to make plastic decreases, so will the price of a milk container or detergent bottle at the grocery store.
  • “Natural gas drilling will impact the whole country,” said Connors, adding that as people begin seeing more money in their wallets because of cheap natural gas, the economy will take off and jobs will be saved and/or created.
  • Joe Swope, communications manager at Reading-based UGI Utilities Inc., which also has an office in the Lehigh Valley, reported that the natural gas utility is prospering with a 70 percent increase this year in commercial customers throughout Lehigh Valley and Berks County switching to natural gas and a 60 percent increase in commercial natural gas conversions last year. One of the utility’s most recent projects in the Lehigh Valley was for Geo Specialty Chemicals. Swope said that the cost savings for commercial customers can range from $10,000 a year to $100,000 or more, and natural gas conversions are happening more frequently due to the fact that the supply is local and the method is hurricane proof.
  • He reported that when Altadis USA, a maker of cigar wrappers located in the McAdoo Industrial Park in Schuylkill County, converted to natural gas this past spring it anticipated saving $1 million annually. “Basically, the commercial business we are getting is price driven and most definitely related to Marcellus Shale,” said Swope. “The natural gas price has lowered about 40 percent in some cases and this trend does not look to be temporary…our customers are not likely to have buyers regret.”