This week, the U.S. Energy Information Administration (EIA) released its Natural Gas Annual report, reflecting the unquestionable benefits tied to the shale revolution well underway across America, including the fact that record amounts of natural gas were both produced and consumed across the nation and regionally. As we know, increased production and use of clean-burning natural gas means more good-paying jobs – especially for labor and building trades – are being created; enhanced air quality; more affordable energy for consumers; and our nation’s energy security is strengthened.
Here are key highlights from EIA’s report [Pa.-specific data HERE]:
- The 2013 Natural Gas Annual shows record natural gas production and consumption levels in the U.S. In 2013, domestic dry production of 24.3 trillion cubic feet (Tcf), or 66.7 billion cubic feet per day, (Bcf/d) rose just over 1 percent over 2012, with Ohio increasing the most, percentage-wise, of any state. Dry production in Ohio more than doubled from 0.2 Bcf/d in 2012 to 0.5 Bcf/d in 2013. once again saw the biggest total gains, however, increasing almost 3 Bcf/d from 6.13 Bcf/d in 2012 to 8.86 Bcf/d in 2013.
- Record levels of consumer deliveries were 23.8 Tcf, or 65.2 Bcf/d; while electric power deliveries dropped for the first time since 2008, the other four sectors each showed an increase from 2012 deliveries, led by residential, which rose from 11.3 Bcf/d in 2012 to 13.5 Bcf/d in 2013.
- Continuing a trend, production gains enabled a decline in natural gas imports in 2013 for the sixth straight year. Total imports of natural gas for 2013 were 2,883,355 Mcf (million cubic feet), the lowest since 1995.
In addition, a new Duke University report was released a report this week – titled Oil and Gas Revenue Allocation to Local Governments in Eight States – which examines the economic and tax revenue benefits tied to oil and gas production in key energy-producing states, including Pennsylvania. The Duke researchers determined that Pennsylvania is the “state with the highest municipal revenue share” and that, overall, local governments have “experienced positive fiscal outcomes” because of the Commonwealth’s impact fee tax.
Here are highlights from the report:
- The state with the highest municipal revenue share is Pa., which directs a substantial portion of its impact fee to municipal authorities known as townships.
- imposes an “impact fee” [tax] on each unconventional well drilled in the state. This fee raised roughly $202 million in FY 2012, and roughly 60% of those [tax] revenues are allocated to local governments, with counties receiving roughly $37 million (18%), municipalities including townships receiving roughly $62 million (31%), and state grant programs for local governments receiving roughly $27 million (13%).
- Although local governments in Pa. receive a small share of production value relative to other states in this survey, our previous research indicates that most have experienced net positive fiscal impacts from Marcellus shale development. Municipalities, however, collect a larger share of revenue in Pa. than in any other state in our survey due to allocations of the impact fee [tax].
- Road repair costs have also been substantially limited in Pa. through widespread agreements between local authorities and operators, who typically repair any damage they cause to township roads. County governments…have generally experienced positive fiscal outcomes associated with Marcellus development.
- Overall, it appears that local governments in Pa. are receiving adequate revenue to manage increased service demands associated with Marcellus development.
This report certainly underscores the fact that new job-crushing energy taxes would harm Pennsylvania’s economy, especially local governments, small businesses and our region’s growing union workforce.
To learn more about the local and statewide benefits of the impact fee tax, which overwhelmingly benefits Pennsylvania, visit MarcellusCoalition.org, follow us on Twitter and like us on Facebook
