Pennsylvania natural gas is the engine of Pennsylvania’s economy, supporting hundreds of thousands of workers and injecting billions in annual economic activity, a new report commissioned by the Marcellus Shale Coalition (MSC) finds.
The report, which details economic activity in 2022, also forecasts sustained job growth, economic contributions, and tax revenues through 2050, indicating the steady, long-term opportunity ahead.
“This new economic data, focused specifically on the natural gas sector within Pennsylvania’s borders,
not only demonstrates the essential role of the natural gas industry but also the urgency to prioritize infrastructure development and permitting reform to maximize these job-creating benefits,” MSC President David Callahan said of the report’s release.
In 2022, the natural gas sector supported ~123,000 jobs with family-sustaining wages, paying an average of $97,000 annually. That’s 113% higher than the average median wage in the state, and part of the overall $12 billion contributed in labor income.
These jobs and the investment that supports them directly underpin the health of Pennsylvania’s economy. In 2022, the industry generated more than $41 billion in economic activity, increasing Pennsylvania’s GDP by an additional $25 billion.
In addition, royalty and impact fee payments directly benefit all four corners of the Commonwealth. Landowners and government entities received $6.3 billion in royalty payments last year, while the sector contributed $3.2 billion in state and local taxes, including a record $279 million in impact fees (or the state’s unique tax on natural gas) and $2.6 billion in federal taxes.
That money is reinvested in family farms and small businesses, critical municipal emergency, economic development, and conservation projects, or even outdoor recreational facilities such as state game lands.
Looking to the future, Pennsylvania shale will continue to economically benefit our state and nation. According to the study, between now and 2050 Pennsylvania will see cumulative economic activity from $1.09 trillion to $1.156 trillion. Yet, this economic boost is reliant upon pro-energy, pro-American worker policies that prioritize domestic energy and infrastructure development.
“Our energy future is bright, and with the right policies in place, we will continue to resiliently lead from the front by achieving energy affordability and reliability, manufacturing, environmental protection and emissions reduction, as well as national security goals that benefit all Pennsylvanians and Americans,” said Callahan.
The facts are clear: Our world will continue to count on Pennsylvania’s natural gas industry, which is committed to providing the energy fundamental to human life.
Read the full report HERE.
Download the fact sheet HERE.
