Shale gas production in our region continues to shatter records. And as safe natural gas production climbs to new heights, it brings with it opportunities for our local workforce, a manufacturing renaissance, sharply improved air quality for our region’s economy. As CNBC’s Jim Cramer noted this week, “we’re in the middle of a domestic energy renaissance.”
Here’s what they are saying about shale’s benefits:
Record-Shattering Gas Production
- Responsible Pa. shale production hits 1.9 trillion cubic feet: Pennsylvania’s shale-gas wells produced 1.9 trillion cubic feet of natural gas during the first half of this year, according to data released Monday by the Pa. Department of Environmental Protection. … Production is up from roughly 1.7 trillion cubic feet over the second half of last year, and from about 1.4 trillion cubic feet over the first six months of 2013. In the current six-month reporting period, wells in Greene and Washington counties were the biggest contributors to the total among the southwestern counties. (Pittsburgh Business Times, 8/18/14)
- “Gas production from Marcellus shale sets record”: Pennsylvania drillers are pulling record amounts of natural gas from the Marcellus shale even as they bring fewer new wells online, according to state data released on Monday. About 5,400 shale wells produced nearly 2 trillion cubic feet of gas during the first six months of the year, a 14 percent increase in production over the past six months of 2013, the data from the state DEP show. Energy companies accomplished the record despite connecting fewer than 500 new wells during the period. … “We’re seeing the results of technical developments that allow much greater efficiency,” said Kent Moors, executive chair of the global energy symposium at the World Affairs Council of Pittsburgh. … “Our efficiencies are wonderful. The laterals are longer. We’re drilling wells in shorter timeframes,” said David Spigelmyer, president of the Marcellus Shale Coalition. (Pittsburgh Tribune-Review, 8/18/14)
- “Pennsylvania gas production continues to break records”: Drillers in Pennsylvania continue to produce record-breaking amounts of natural gas, according to new numbers released this week from the state DEP. Companies operating in Pennsylvania produced nearly 2 trillion cubic feet of gas in the first half of 2014. If they continue at this pace, Pennsylvania is on track to produce 4 trillion cubic feet this year– or about 16 percent of what the entire United States consumes annually. (StateImpact, 8/19/14)
- MSC members leading the way in Pa.: Gas production in Pennsylvania continued to hit records, with 1.9 trillion cubic feet of gas coming out of the ground during the first half of the year, according to new data released from DEP on Monday. That’s a 14 percent increase over the previous six-month period when operators pulled 1.7 trillion cubic feet of gas out of the ground. A year ago it was closer to 1.4 trillion. … Washington County was once again the leader in liquids production in the state by a large margin, with 1.8 million barrels of condensate, most of that coming from Range Resources, and 204,316 barrels of oil, all from Chesapeake Energy. … Five Cabot Oil & Gas wells in Susquehanna County were the most productive during the past six months … The top five producers in the state — Chesapeake Energy, Cabot Oil & Gas, Range Resources, Southwestern Energy, and EQT Corp, in that order — accounted for nearly half of the state’s gas supply for the first half of the year. (Pittsburgh Post-Gazette, 8/19/14)
Enhancing our Environment, Air Quality
- Compressed Natural Gas Makes Environmental, Economic Sense: Northern Virginia is getting its only public natural gas fueling station adjacent to Washington Dulles International Airport. … There were around 120,000 natural gas vehicles in use in the United States as of 2011, according to the Transportation Energy Data Book. Most of those vehicles are shuttle buses, garbage and refuse fleets and tractors, according to Alleyn Harned, executive director of Virginia Clean Cities, a clean air nonprofit. Because of the proximity to Dulles Airport and the heavy use of buses and tractors, the location of the refueling station near the airport makes sense, according to Harned. … Natural gas vehicles are less toxic for the air, according to Harned. Natural gas cars make economic sense to buy only if the user will be driving hundreds of thousands of miles in the car. (Loudoun Times, 8/18/14)
- Petroleum geologist: Shale has “Game-Changing” environmental benefits: The shale revolution has contributed greatly to America’s energy supply, produced a lot of revenue and jobs in Pennsylvania and other states, spurred a comeback in manufacturing, provided clean-burning fuel for transportation and bolstered our nation geopolitically. But don’t lose sight of its environmental benefits, which in less than a decade have been game-changing. The shale revolution is generating real-world consequences in the battle against climate change. … Those who question whether the expanded use of gas for power production in the United States is sustainable, given the multiple demands on its use, should consider that natural gas resources in the United States are virtually inexhaustible. (Pittsburgh Post-Gazette op-ed, 8/17/14)
Providing Economic “Salvation” for our Region
- Marcellus Shale industry holds “significant growth” opportunities: Having spent 29 years as a construction worker, John Hagan switched four years ago to working for Rex Energy. … Hagan, 53, of Cranberry and other construction workers moving to natural gas companies represent one of the shifts in the regional economy that don’t show up in typical job reports. … The development of the Marcellus shale and related manufacturing could change that, he said. “We’ll certainly see a significant growth in the construction field in the next five years as the gas industry takes off,” Burd said. … Christian Quarles, 38, of Homer City started his own construction company while getting a nursing degree from Indiana University of Pennsylvania. He spent six years doing home improvement work, then took a job with Halliburton in 2009. He coordinates resources for the company’s cement department, which cements gas wells once they are drilled. … Looking around, natural gas “was the only thing that looked like it would be a career move for me,” he said. “That was on the one industry that had been here for a while and certainly was going to stay.” (Pittsburgh Tribune-Review, 8/16/14)
- Natural gas boosting regional schools: During the 2013-14 school year, the four schools whose wells are currently in production received almost $111,000 altogether in royalties. And when it comes to upfront money – bonus payments per acre of leased land – eight schools received nearly $2.2 million after signing leases between 2008 and 2014. … Fort Cherry School District, which has a lease with Range Resources, is touting itself as the latest success story. … [The] money will likely be used to help offset the deficit and pay for pension and medical care costs for employees. … Range Resources alone has paid almost $2 million to six of the schools it has leases with. … Several school administrators said natural gas royalties are especially helpful during a time when public education funding is on the decline. Scott Martin, superintendent of Bentworth School District, said the board was considering drastic measures to cut costs for the 2011-12 school year, but a bonus payment of more than $200,000 from Range helped the district get back on its feet. (Washington Observer-Reporter, 8/16/14)
- Natural gas impact fees “enhance the quality of living” in local counties: Municipal officials in Fayette and Greene counties plan to use their Marcellus shale impact fee funds on a numerous projects — from road repairs to an emergency center, and from funding police services to offsetting the cost of a new sewage treatment plant. With $3.8 million headed to Fayette’s municipalities and $9.5 million going to Greene’s, most area leaders said the funds have been a boon. … According to documents … the township last year used $254,000 for township police, $70,000 for gas and diesel and $60,000 for heating and air conditioning at a senior citizen center. … The township has received more than $2.7 million in funding over the last three years, with nearly $1 million of that going towards the township’s emergency services … Center Township Supervisor Seann McCollum said the money received this year has been deposited into the township’s capital reserve fund. “We want to look out for our long-term goals for ways that we can better the community,” said McCollum. … Morris Township received a slight increase over last year’s funds, collecting $515,100 in disbursement money this year. Supervisor Bob Keller said $250,000 will be put toward updating the township’s community center to add an emergency center. … Keller said he hopes that sinking disbursement money into long-term projects that will enhance the quality of living in the county will help to increase the county’s population. (Herald Standard, 8/19/14)
- Impact fee tax revenues improving roads: Thanks to Marcellus shale drilling impact fee money, Washington Township is able to catch up on bills and projects this summer. The township’s paving projects were completed with $85,000 of the $310,000 impact fee money. “The projects are finished,” said Rich Gardner, chairman of the township supervisors. “That was just what we needed to pay the final bills.” Gardner said the impact fee money was more than officials expected or budgeted for, which allowed them to catch up on paving that had been put off. … Gardner said the rest of the natural gas drilling impact fee money hasn’t been spent, but it will likely go into other funds including the equipment fund. (Pittsburgh Tribune-Review, 8/15/14)
- Pittsburgh airport looks to natural gas for “salvation”: Pittsburgh’s airport is struggling financially and mired in debt, with sharply lower traffic ever since US Airways began phasing it out as a bustling hub in 2004. … For salvation, airport officials are looking down — about 6,000 feet. The quiet runways, it turns out, are sitting on enough natural gas to run the whole state of Pennsylvania for a year and a half, and this month, Consol Energy will drill its first well here to tap the gas, which county officials say will bring them nearly half a billion dollars over the next 20 years. … Natural gas deposits should provide welcome revenue for Pittsburgh’s airport, which is struggling with debt and declining traffic. … “It’s like finding money,” said Rich Fitzgerald, the county executive of Allegheny County, which owns the airport. “Suddenly you’ve got this valuable asset that nobody knew was there.” The discovery could not have come at a better time for the airport, which devotes 42 percent of its annual budget to pay off its large debt, much of it incurred to build out the gates it no longer uses. … The airport will receive about $20 million a year, a hefty portion of an operating budget currently below $91 million. … Mr. Fitzgerald and others have recognized for a while that their chunk of southwestern Pennsylvania lies atop the vast Marcellus Shale, a fracker’s paradise that is among the most productive in the world. (New York Times, 8/11/14)
And because of these game-changing benefits, that are boosting small businesses and helping consumers, Pennsylvanians continue to overwhelmingly support increased production. In fact, 82% of voters “support increased development of the country’s energy infrastructure,” according to a new poll.
Are you a shale advocate? Visit UnitedShaleAdvocates.com to learn more about supporting safe, job-creating shale development.
