Pa. Energy Producers Hold ‘Cautiously Optimistic’ Outlook

With rig counts steadily rising, key infrastructure projects coming online, and production increasing, Pennsylvania’s energy producers have a cautiously optimistic outlook, MSC president David Spigelmyer told reporters recently.

During a swing through local papers across the north central and eastern parts of the state, Spigelmyer provided a state of the industry update for the second-half of the year and discussed policies that will help grow jobs and attract long-term energy investment.

“Now we’ve got supply, a long-term supply, because we’re very much in the early innings of a nine-inning game here in terms of development, and what we’re able to do globally with this energy is incredible,” Spigelmyer told the Rocket-Courier.

Here’s what they’re saying:

BC BIZ: A sit-down with David Spigelmyer

“I think it’s fair to say the Marcellus and Utica Shale play could be the granddaddy for shale plays in the United States for natural gas. It really has become that kind of play,” said Spigelmyer. “If you think about it, a third of the natural gas used in the U.S. is coming out of this play. That’s an enormous feat in such a short period of time.” (8/27/18)

‘Period of cautious optimism’

“‘We are a bit of a victim of our own success,’ said Spigelmyer. ‘… We are in a period of abundance and affordability.’ Pennsylvania’s Marcellus Shale play is “world class” and has made the state the second-biggest natural gas producer, just behind Texas, in the U.S. It will ‘drive our future for generations … (and) is just getting started,’ he said.” (8/8/18)

Natural Gas Industry “Key to Future in State”

“The industry is productive, its presence keeps natural gas prices relatively low for local consumers, the impact fees it pays fund infrastructure and other important local projects and it receives no state funding to do its business. Pennsylvania could do a lot worse for an industry that is one of its most important economic calling cards. (8/5/18 editorial)

MSC President talks about issues facing industry

“Spigelmyer also pushed back against the governor’s call to institute a severance tax on natural gas drillers. Since the Act 13 Impact Fee was put into place, the state has received about $90 million in Impact fee revenue to the general fund. … Spigelmyer said the state’s pension crisis should not “be laid on the back” of the gas industry. Neighboring states Ohio and West Virginia both have a severance tax, but the Impact Fee has generated more revenue than those states combined. ‘Our version collectively beat those,’ Spigelmyer said. ‘It’s callous (of the governor) to make the statement that companies do not pay their fair share.’” (8/3/18)

Shale gas is saving Pennsylvanians on their energy costs

“Shale gas has been a clear winner for our environment, too. The United States continues to lead the world in carbon emission reductions, and emissions from electricity generation are at 30-year lows, according to EIA data, as clean, reliable natural gas meets a greater share of our electricity needs. …Natural gas is part of the solution and this region is uniquely positioned, if we get the policy equation right, to ensure that all Pennsylvanians have reliable, affordable and clean energy.” (8/1/18 column)

An air of cautious optimism for natural gas development

Capital goes to the path of least resistance. We’ve seen with aggressive policies that we can lose capital with the depressed price…My point is that policies matter, and if we think we can pancake a tax on top of a tax that passed in 2012 without there being harm to this industry, without there being harm to this community, we’re sadly mistaken,” said Spigelmyer.” (7/26/18)