Pittsburgh, Pa. – America’s abundant, clean-burning shale gas resources are rebalancing longstanding global energy trends, shifting more economic and geopolitical power to the United States. And while affordable supplies of homegrown natural gas are helping to create local jobs, many European manufacturing jobs are relocating to the United States. Here’s what they’re saying:

FAR-REACHING GLOBAL IMPACT

  • NBC News: A “Dramatic Shift” on America’s Energy Horizon: Without fanfare, China passed the United States in December to become the world’s leading importer of oil – the first time in nearly 40 years that the U.S. didn’t own that dubious distinction. That same month, North Dakota, Ohio and Pennsylvania together produced 1.5 million barrels of oil a day — more than Iran exported. As those data points demonstrate, a dramatic shift is occurring in how energy is being produced and consumed around the world – one that could lead to far-reaching changes in the geopolitical order. … Many experts say the U.S. would be the big winner, in position to reshape its foreign policy and boost its global influence. … The United States is reaping the benefits of an energy boom created by new drilling technologies that have unlocked vast domestic oil and natural gas reserves. … An increasing number of experts believe the U.S. could achieve energy independence by the end of the decade – realizing a dream born during the gas crisis of 1973. (NBC News, 4/1/13)
  • House Majorty Leader Steny Hoyer: Md. LNG Project Key to “Job Creation”: The benefits of this [Dominion LNG] project are expected to be far-reaching in terms of creating jobs and supporting the local, state and national economy. A study has shown that up to 4,000 jobs would be produced in the state of Maryland during the construction phase. Benefits to the natural gas and other industries would support another 14,600 jobs once the facility enters service. The project would produce an estimated $9.8 billion in royalty payments to mineral owners over 25 years. And, about $1 billion annually of additional federal, state and local government revenues would be generated directly and indirectly. U.S. House of Representatives Democratic Whip Steny Hoyer (5-MD) said, “I am pleased Dominion has moved forward to secure terminal agreements with two important trading partners. The proposed Cove Point LNG liquefaction project has the potential to make a significant contribution to Southern Maryland’s economy. Today’s announcement helps to ensure the project’s viability and moves us closer to the job creation.” (Release, 4/1/13)
  • Congressman Charles Boustany: America “Should Seize This Opportunity”: LNG continues to serve as an attractive energy source to companies and governments in Europe and Asia. … LNG can become a valuable trade export providing reliable energy sources to markets otherwise unreachable. … Exporting LNG to these areas ofthe world is a win-win for all parties involved. … LNG leads to job creation at home, a reduction in the national trade deficit, and in increase in revenues for the federal government. As a Member of the House Ways and Means Subcommittee on Trade, I believe these are all value-added benefits for our nation. … The primary beneficiary of such actions would be countries with surplus supplies of the product, specifically the United States. … The domestic natural gas boom presents the U.S. with an opportunity to become a global energy player. Our nation should seize this opportunity and not let it pass by. It’s in the public’s interest. (The Hill op-ed, 4/2/13)
  • Economist: Natural Gas “Exports Grow Our Economy: With one decision, policymakers in Washington could grow our economy by nearly $50 billion over the next seven years. The question before them: whether to continue blocking the export of liquefied natural gas (LNG). The United States is experiencing an energy boom. Because of improved technology, vast reserves of natural gas once inaccessible are becoming available. … LNG exports will benefit the entire U.S. economy, and there will still be plenty of gas available for homegrown consumption at historically low prices. … The U.S. should capitalize on the comparative advantage it has over other countries with natural gas. In fact, respected economic consulting firm NERA recently analyzed LNG exports for the Energy Department and found that across every market scenario, increased exports would benefit the U.S. economy. (Gilmer Mirror op-ed, 4/3/13)

POWERFUL SOURCE OF JOB CREATION

  • Marcellus Shale Preserves Pittsburgh Area Employment Ratings: Hospitals, financial services and the Marcellus Shale industry in southwestern Pennsylvania are expanding employment, but the rest of the area’s economy has slowed hiring, according to Pittsburgh TODAY. The Pittsburgh Metropolitan Statistical Area includes Allegheny, Armstrong, Beaver, Butler, Fayette, Washington and Westmoreland counties. According the U.S. Bureau of Labor Statistics, in January 2013, the unemployment rate in Pittsburgh was 7.5 percent compared to the nation’s 7.9 percent. (WESA, 4/2/13)
  • Penn State Natural Gas Training Program Generates New Careers: Penn State DuBois has partnered with several organizations connected to the Natural Gas Industry through ShaleNET to offer training that will prepare individuals for careers in the Marcellus Shale boom at very little cost. The Floor Hand Training Program provides all of the training and certifications the students in the program need to enter the workforce on a gas well drilling site as a floor hand. … Before graduation for the Floor Hand Training Program event took place, Mike Disney and his classmates were getting job offers. He’s now deciding which one to take. “If I was going to title my life, I’d title it ‘The Man That Lost All Hope’. But, I have hope again now. I went from no job offers in a year and a half to already having gas and oil companies knocking on my door. It blows me away.” (Release, 4/1/13)
  • Washington Post: “European Industry Flocks to U.S. to Take Advantage of Cheaper Gas”: The plunging price of natural gas in the United States has European companies setting sail across the Atlantic to stay competitive. German chemicals giant BASF, which operates the plant here, has announced plans for wide-ranging expansion in the United States, where natural gas prices have fallen to a quarter of those in Europe, largely because of American innovations in unlocking shale gas. Among those most affected are energy-intensive industries such as steel and chemicals, because they use natural gas as a raw material and power source. With Europe lagging in energy production, manufacturers on the continent warn that a chain reaction could shift more and more investment to U.S. shores. … Many people view the U.S. as the land of the future. Since 2009, BASF has channeled more than $5.7 billion into new investments in North America. … “Over time, you see a self-accelerating process, which will move production into the U.S.” (Washington Post, 4/1/13)
  • NY Landowner President: Job-Creating Marcellus Shale Provides “Energy Independence, Cleaner Air and Economic Prosperity”: With more than 1,800 Marcellus wells drilled to date and no safety or health risks, Bradford County is enjoying unprecedented prosperity. … $1.5 billion was put into the general fund in Pennsylvania, which will benefit all Pennsylvanians. … New York shares the same geology as Pennsylvania; yet, as business and families flourish in Bradford County, it’s a different story in New York’s Southern Tier. … Unemployment is more than 10 percent. The population loss is significant because key businesses have closed. Property rates are significantly higher, creating more financial burden on taxpayers. … It also will create hundreds of construction jobs and keep these plants open. But, in New York, we only see one delay after another while we starve New Yorkers by cutting off opportunity. Pennsylvania prospers while New York is paralyzed. (Press & Sun Bulletin, 4/1/13)

ENERGY SECURITY DRIVEN BY TECHNOLOGY

  • GE Chairman & CEO Jeff Immelt: “Game On: Shale Gas Can Ignite Manufacturing, Lead to Energy Independence”: “All in.” That’s how a lot of people talk about how we should approach our energy challenges. But what does it mean? Part of it means making the most of any country’s natural resources to spur economic growth. Today, that means expanding the production of unconventional resources – fuels like shale gas. … It’s exciting; the availability of shale in the United States and around the world has to be one of the biggest game-changers I’ve seen in my career. … We’ll have cheaper energy. We will power a manufacturing renewal. We will enable trains, trucks and cars to run cleaner and at lower cost. The impact is so profound that it could even lead to energy independence in North America. That’s why every citizen should be very interested how we develop these resources. And it is incumbent on innovators and businesses to develop technologies that ensure reliable, safe and efficient extraction and use of unconventional oil and gas. We’ll do our part! But “all in” doesn’t mean “either/or.” Too often that’s premise of the energy debate. And it’s counter-productive. Instead, we should be looking for ways to use different energy sources in concert. (LinkedIn, 4/3/13)
  • GE Chief: Shale Gas “One of the Biggest Productivity Drivers of our Lifetime”: “Unconventional resources, and shale gas in particular, may be one of the biggest productivity drivers of our lifetime,” said GE Chairman and CEO Jeff Immelt. “At GE, we see a tremendous opportunity in the oil and gas space. Since 2007, we have invested $11 billion to build broad technical capabilities that can deliver productivity gains and foster innovation for our customers.” … Gov. Mary Fallin said, “In Oklahoma, we know that America’s energy security and economic well-being demand more domestic energy production. Technology continues to be the key to unlocking new energy resources and effectively utilizing those we have already discovered.” (Release, 4/3/13)
  • Innovation Increasing Access to Job-Creating Natural Gas Supplies: The massive scale of the global drilling sector, combined with its technological prowess, gives us every reason to believe that we will have cheap, abundant, reliable supplies of oil and gas for many years to come. … Despite more than a century of claims that the world is running out of oil and gas, estimates of available resources continue rising because of innovation. In 2009, the IEA more than doubled its prior-year estimate of global gas resources, to some 30,000 trillion cubic feet—enough gas to last for nearly three centuries at current rates of consumption. Cheap, abundant, reliable energy supplies are essential for economic development. (Manhattan Institute, 3/13)
  • Brookings: U.S. Natural Gas Liquids Offer “Profound Economic and Geopolitical Implications”: While such commodities do not attract the attention that is shown to crude oil, gasoline, or natural gas, [NGLs] are a critical component of the industrial sector’s ability to take advantage of the U.S. hydrocarbon resurgence, and will play a large role in the country’s ambitions for energy “self-sufficiency.” The increase in NGL production is a boon for the U.S. economy. … The petrochemical industry is a major consumer of NGLs. Liquids such as ethane are central ingredients in many industrial processes, such as the production of ethylene, which is a critical component in the production of plastics and other goods. Owing to a surge in domestic NGL production, petrochemical producers are now benefitting from the availability of cheap NGLs, giving the U.S.-based petrochemical producers a significant competitive advantage. … If the U.S. is to realize the full potential in its resurgence as a major hydrocarbon producer, NGLs will play a major role. NGLs production will have a direct impact on the competitiveness of U.S. manufacturers and petrochemical producers and play a significant role in any scenario of domestic self-sufficiency in hydrocarbon liquids. (Brookings Institution, 3/13)

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