IHS Markit’s Yergin: Shale Revolution a “Major Stimulus” to U.S. & Pa. Economy

Domestic natural gas production, particularly from the Appalachian Basin, continues to be a “major economic stimulus” and key driver of environmental progress, IHS Markit’s Dr. Daniel Yergin and U.S. Department of Energy Secretary Rick Perry said this week.

Testifying before the U.S. House Energy & Commerce subcommittee on energy yesterday, Dr. Yergin explored how the Shale Gale, the surge in domestic gas production resulting from horizontal drilling and hydraulic fracturing as IHS terms it, has bolstered America’s status internationally and strengthened it domestically.

Striking a similar tone, Sec. Perry – during remarks at the World Gas Conference and in a Washington Examiner column – discussed the role of U.S. natural gas production in in making the world safer, cleaner, and more prosperous. Sec. Perry’s vision stems from recognition of the nation-wide economic and security benefits that have accompanied record natural gas production over the last decade.

Here are the highlights:

IHS Markit Dr. Daniel Yergin’s Testimony:

The shale revolution has been a major stimulus to the U.S. economy – not just in the oil and gas sector but across the entire economy because of the long supply chains. Industries that were expected to flee the United States because of high cost energy are now spending tens of billions to build new plants in the United States because of the availability and moderate cost of energy

The shift to natural gas has, because of falling natural gas prices and confidence in long-term gas supply, along with the addition of renewables, contributed to the reduction in US carbon dioxide (CO2) emissions from power generation…

Appalachia’s vast economic resource base comprises the massive and prolific Marcellus and Utica plays, each of which is now estimated to be able to supply the United States with two decades of natural gas... But this monumental growth will require more infrastructure to move gas production from supply basins to consuming markets within North America and to LNG terminals for export.

The development of the Marcellus play provided major economic stimulus in Pennsylvania, including such support industries as real estate, lodging, food, vehicle sales, construction, and local commerce.

Sec. Perry’s World Gas Conference Remarks:

In some quarters… at home and abroad… there is still stubborn opposition to natural gas and other fossil fuels.

The opposition exists even as fossil fuels become cleaner and low-emissions natural gas increases its share of total fossil production and use. …

For the sake of energy security…for the sake of economic security…for the sake of national security….for the sake of environmental progress…and for the sake of our fellow human beings, we must honor the right of every nation to responsibly use every fuel at its disposal.

And yes, that includes the cleanest fossil fuel and one of the most abundant energy sources on the planet — natural gas.

Sec. Perry’s Washington Examiner Column:

It is through low-emission natural gas and other fuel sources that we are expanding our economy, igniting job creation, and protecting our environment. What’s more, United States energy-related carbon emissions hit a 25-year low in 2017, a fact that can be directly linked to increased natural gas use for power generation.

We now have such an abundance of natural gas that, for the first time in six decades, we have become a net natural gas exporter… Yes, America is sharing its energy bounty with the world. And in so doing, we are empowering our friends, allies, and trading partners economically and energy-wise as well.

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