Facts about the Natural Gas Impact Tax

If you guessed $830 million, you are correct! The impact tax is on track to generate nearly $830 million by April of this year. These enormous tax revenues go directly into the communities where natural gas production takes place as well as each and every one of our 67 counties. To view how much revenue your county […]

What are the job opportunities for residents of this region who are unable or unwilling to relocate?

While jobs in engineering, construction, and equipment operations are most plentiful, there are professional services and support positions being filled by firms located in southeastern Pennsylvania. Additionally, many of the jobs at the South Philadelphia and Delaware County refineries are directly tied to Marcellus development. For additional information on employment opportunities in the natural gas […]

What is the economic impact of the development on SEPA?

While the Marcellus Shale formation does not extend beneath SEPA, that doesn’t mean those in the Philadelphia area aren’t benefiting. The most obvious impact is the utility rate savings that everyone, including those in the greater Philadelphia region, have received as a result of this development. Researchers recently found that in 2012, because of reduced […]

How do our energy prices compare to other states that do not have natural gas and how can we use low pricing to attract manufacturing?

Great question. Cheap natural gas certainly provides a competitive advantage to manufacturers, and the proximity to that gas provides yet another advantage – the closer you are to the resource, the less you have to pay in pipeline transportation costs. As for energy prices, that’s a bit trickier to answer. As you probably know, crude […]

Are price dynamics for Marcellus different from gas from non-shale sources (early production rate fall-off) and will price be more or less stable?

Natural gas prices — like virtually every commodity — will ebb and flow over time. It is quite clear, though, that our abundant and growing resource base will help keep energy prices affordable for American consumers and businesses for decades to come. In fact, President Obama said this during his 2013 State of the Union […]

Which would be more economically responsible, finding more fossil fuels or a new alternative?

Access to affordable, reliable forms of energy are key to a strong, growing and prosperous economy. From manufacturing to transportation to providing a reliable and efficient means to power our homes and businesses, natural gas is a key and growingly important component of our domestic energy portfolio. Wind and solar also play a critical role, […]

Is it true that Act 13 provides for money that can be used for conservation to go to the municipalities?

Absolutely. And just recently, the Pa. Public Utility Commission (PUC) allocated $202.4 million – which is in addition to $1.8 billion paid in natural gas-related taxes and last year’s impact fees of more than $200 million – to various programs, including conservation efforts. Impact fee revenues – generated by the safe, job-creating shale development – […]

What happens when drilling companies go bankrupt?

If a natural gas operator does in fact go bankrupt, the same process holds true for their business as it would for any other business.  Natural gas operators are also required to have a bond on their well pads in the event something should occur and the company is no longer in existence to address […]

How can I get a job in the Marcellus Shale industry?

While there are a number of online resources for employment opportunities in the natural gas industry, we would direct you to the Marcellus Shale Coalition’s Job Portal, which links to the employment sections of our 300+ member companies websites.

How come you don’t hire local residents in the areas where you drill? I’ve seen the places you drill and they’re usually poor economic areas. It would help the local economy.

In line with our Guiding Principles, the MSC works to attract and retain a talented local workforce: the development of clean-burning, reliable, and abundant natural gas resources that will improve our energy security and national security for generations to come. Indeed, safe shale development is providing new opportunities for family-sustaining employment in a variety of […]

How does the MSC support the secondary businesses in this?

Our Marcellus on Main Street initiative connects the industry with local vendors, suppliers and services throughout the Marcellus Shale play. The coalition’s associate members include a host of businesses that are serving the industry and benefiting from the rewards of natural gas exploration. We work to ensure all our members have resources to succeed and […]

What can the gas industry do to connect low prices of gas with what is happening in development?

Thanks to new technologies, natural gas companies are able to bring cheap, clean-burning American natural gas to consumers. Horizontal drilling coupled with hydraulic fracturing allows us to safely produce our abundant, domestic supplies of clean-burning natural gas, further strengthening our nation’s energy security. The more energy that is safely produced here at home is helping consumers […]

Are there opportunities for construction and construction management [from SEPA] given the distance?

The safe development of clean-burning natural gas from the Marcellus Shale continues to benefit literally every square inch of Pennsylvania. And while many natural gas companies have offices in the Marcellus “fairway,” where production activities occur, there are others along the growing supply chain that are based in southeastern Pennsylvania. The MSC also has a […]

What types of industries are well-suited for the [SEPA] region?

Given the geographic and geologic footprint of the Marcellus Shale, there will never be active development of this resource in southeastern Pennsylvania. But that doesn’t mean there aren’t opportunities in the region. There are many companies in the region—ranging from environmental, engineering and law firms to manufacturing facilities building drilling rigs—that are actively supporting Marcellus […]

There are costs for infrastructure – what is the break point to say that natural gas is cheaper to use after the infrastructure investment?

The natural gas industry’s midstream sector moves, stores and markets natural gas through pipelines and other means of transportation. According to recent analysis, pipeline expansions have helped the Marcellus Shale reach higher production rates to become the largest U.S. gas-producing play. And shale production is at an all-time high, with the use of fewer drilling […]

Are price dynamics for Marcellus different from gas from non-shale sources (early production rate fall-off) and will price be more or less stable?

Natural gas prices — like virtually every commodity — will ebb and flow over time, based on a host of factors, principally supply and demand. It is clear, though, that our abundant and growing resource base will help keep energy prices affordable for American consumers and businesses for decades to come. In fact, President Obama […]

Will the people living in shale areas/have drilling on their land get the option of having drilling companies convert their home systems to natural gas for heating and cooking at a low/free cost?

In a recent speech, President Obama said: “The bottom line is natural gas is creating jobs.  It’s lowering many families’ heat and power bills.” He’s absolutely right. In fact, according a TD Bank study, “American residential consumers can expect to save around $75 billion in utility costs in 2013 — equivalent to about $650 per […]

Is the industry looking at both short term and long term positive impacts of the gas drilling and transportation activity?

Absolutely, our industry consistently evaluates and sees both long- and short-term positive impacts associated with clean-burning natural gas production and use. As more clean-burning American natural gas is safely produced here at home, tens of thousands of jobs are being created, especially in the manufacturing sector. Likewise, responsible and tightly-regulated shale development is bringing about […]

In a high unemployment rate city with low education rates, what are the opportunities for these parts of the underserved population?

The short answer is, there are boundless opportunities across the supply chain for those who are willing to be flexible and aren’t opposed to long-hours and hard work. Most, if not all jobs in the natural gas industry require a high school diploma and some level of additional technical training. ShaleNET, a regional programs funded […]

What is the industry’s commitment to STEM education?

The Marcellus Shale Coalition (MSC) is a huge supporter of expanding STEM programs in high schools across the commonwealth. In order to train the workforce of tomorrow for careers in the natural gas industry, a solid technical foundation in the sciences is critical. In fact, one of the biggest challenges for MSC member companies is […]

For people who jump onto (or want to) the natural gas ‘bandwagon’, how long will it take for them to be significantly and directly affected (neg vs. pos)?

On or off the bandwagon, every Pennsylvanian is currently benefiting from Marcellus Shale natural gas development in a number of ways. Whether it’s through more affordable utility bills, the $1.8 billion in state tax revenue or the more than $400 million in impact fees generated for local communities and state agencies, Pennsylvanians are seeing the […]

Given the 11 county, 3 state nature of the region, what benefits will we see as a tri-state region?

The first benefit, regardless of where you reside, is more affordable utility rates. Given the increased production of natural gas, specifically from the Marcellus Shale, prices have come down to a fraction of cost than just a few short years ago. Here in Pennsylvania, utility companies are required to pass that commodity savings along to […]

What is the scale? How much $ are we talking about? What is the size of this?

We’ll take this question a few different ways. From a resource standpoint, the Marcellus Shale is the second largest natural gas field in the world and the largest shale producing formation in the United States, accounting for a full 10 percent of our domestic natural gas production and 25 percent of shale gas production. From […]

What are the pricing dynamics and stability of Marcellus gas?

Natural gas, unlike oil, is not traded on the global commodities market. It’s a regionally priced commodity and the Marcellus is well situated to take advantage of its strategic geographic location. As you may know, with the northeastern population centers at the Marcellus’ doorstep, there are no shortages of markets for the gas produced here […]

Given the refinery and port capacity here – will products from around the state flow through this region?

The ports and refineries in the Philadelphia region are certainly benefiting from Marcellus development. In fact, the three refineries in the region are sourcing their natural gas needs from the Marcellus and some companies are shipping natural gas liquids from the ports. So to answer your question more directly, yes, Marcellus Shale natural gas is […]

What are the new technologies that are being spawned by the industry?

New technologies are researched, tested and developed on a daily basis across the natural gas industry. From emission control technologies to water management to advanced  drilling rigs, computer software and spill containment systems – processes are refined and new products are developed to further reduce the industry’s environmental footprint that also increase efficiencies. On water […]

What investments are being made to ensure that it can be delivered to areas where it can be utilized?

The midstream sector of the natural gas industry has invested billions of dollars in infrastructure to get this clean-burning energy resource to market. As additional wells are development, additional pipeline will be laid to get the resource to market.

What are you (MSC Member cos.) doing to diversity your supply chain and workforce, especially in terms of race & gender?

Thank you for the question. The Marcellus Shale Coalition, and our member companies are committed to diversifying the natural gas supply chain. We have partnered with the African American Chamber of Commerce in both Pittsburgh and Philadelphia, as well as regional business groups to host supply chain forums to inform minority owned companies of the […]

Does it create jobs?

According to the Pennsylvania Department of Labor and Industry (L&I), more than 240,000 jobs are supported by the natural gas industry here in Pennsylvania. Nationally,  IHS Global Insight recently found that natural gas development generated 600,000 jobs in 2010 and projected that to grow to 870,000 by 2015 and 1.2 million jobs by 2035. Recently, […]

Why would you think we want it?

Individual landowners make a decision on whether or not lease their land for energy development. More broadly speaking, 96 percent of all goods used and consumed each day are touched by chemistry, which natural gas serves as a foundational feedstock. Without natural gas, computers, clothing, consumers electronics and other everyday household goods would not be […]

Why do we need to disturb the Marcellus shale?

As you may know, the Marcellus Shale is considered to be the world’s second largest natural gas field – behind one in Iran. These enormous amounts of clean-burning American natural gas, which are being safely and responsibly developed, are fostering job creation, bolstering energy security, generating hundreds of millions of dollars through taxes and fees, […]

Given that the US already provides most of its energy needs from North American and western hemisphere sources, and given that there is an excess of supply, why is it so important to continue development at this time?

The safe development of clean-burning American natural gas has been, and continues to be, a catalyst for economic growth across the U.S., especially for energy-intensive sectors like manufacturing. White House National Security Advisor Tom Donilon underscored this important fact in a recent speech at Columbia University: “America’s natural gas boom is helping to spark a […]

What kind of financial security (e.g., escrow fund) will the natural gas industry provide to remedy ecological accidents/ensuring taxpayers will not carry the burden for environmental hazards?

We’ll take this question in a few parts. Natural gas operators are required to have a bond prior to development commencing. This bond is held by the state in the event an issue arises and the operators does not have the financial resources to remedy the situation. Additionally, a portion of the well permit fee […]

What are the opportunities to replace diesel in trucking fleets?

The opportunities are immense, and are already in motion. In March of this year, Fed-Ex Chairman Frederick Smith told the Wall Street Journal that they are in the process of testing two trucks using liquefied natural gas and two other trucks using compressed natural gas.  If successful, they expect to convert 90,000 vehicles to natural […]

How can we use more NG in PA to create jobs and business opportunities?

It’s a matter of economics. Once natural gas prices rebound a bit, drilling activity will increase. When activity increases, economic activity in communities where development takes place increases.  Increased natural gas powered electric generation capacity will also create added opportunity as will building out the natural gas vehicle infrastructure. 

How many taxes they will pay for it and what are consumers (non-drillers) getting out of all of this?

The natural gas industry is taxed like every other industry doing business in the Commonwealth of Pennsylvania. In addition to those standard taxes – more than $1.6 billion since 2006 – operators pay what is called an impact fee. This fee, which is paid annually on a per-well basis, has generated more than $400 million […]

Could environmentally friendly housing be sent to the region?

We don’t see why not, however that’s a decision that will be made by regional developers and county housing agencies. One (of 13) permitted use(s) of Pennsylvania’s natural gas impact fee revenue is the construction of affordable housing, so it might be worthwhile contacting your local housing agency to inquire about who they plan to […]

Discuss the tax structure and implications of that tax structure knowing there is $1.65 billion tax credits being offered to Shell.

It’s our understanding that the tax credit you are referring to is available to any petro-chemical company that locates in the Commonwealth, not just the one you reference. As you know, there is immense competition among states to attract these sizable projects, with state governments often competing among each other to attract these investments.  Providing companies […]

How will greater productivity in well drilling and production affect gas-based employment?

Natural gas development is a highly technical process that continues to evolve as new technologies are developed. Some of these technologies improve efficiencies along the supply chain, while others create new opportunities for skilled workers to further their careers. There are some areas of the development, pipeline construction in particular, that will continue to provide […]

Does it impact my career?

There’s good chance that it does, or could in the future. With more than 239,000 Pennsylvanians working directly or indirectly to support this development, there’s a good chance that someone you know works in the natural gas industry. If you work in the manufacturing sector, then yes, your career is impacted by Marcellus development. If […]

What is the total tax burden that companies are paying? All of the attention has been to the severance tax, but we should do a better job describing what taxes are being paid.

Natural gas development is responsible for more than $1.8 billion in state tax revenue since 2006. These companies paid $420 million in corporate, sales and employee withholding taxes in 2011 – a 77% increase from 2010 ($237 million). In addition, over $200 million in personal income taxes were paid from bonus lease and royalty payments […]

How much of the sourcing material will come from overseas?

While some material is sourced from overseas, like Guar Gum which is used in the hydraulic fracturing fluid, the vast majority of the materials required to develop and process natural gas is sourced from the United States. The best example of this is steel. Thanks to an increased development of oil and natural gas here […]

Given lower price of natural gas, is there a benefit for being close to the development?

Absolutely. Historically, local utilities had to transport natural gas from the Gulf coast of the United States and the Midwest to serve their customers. With that transportation, comes added costs. By sourcing gas locally, some utilities no longer have to transport gas from hundreds of miles away, in turn saving ont eh transportation costs. Ove […]

How do we train our workforce appropriate for the region’s role?

Given the geographic and geologic footprint of the Marcellus Shale, there will never be active development of this resource in southeastern Pennsylvania. But that doesn’t mean there aren’t opportunities in the region. There is a host of companies in the region that are actively supporting this development. From environmental, engineering and law firms, to manufacturing […]

What vertical job opportunities are there for this region to service the industry or to train and relocate?

Every step in the process of finding, producing, and bringing oil and gas to market involves many people working to complete a wide variety of tasks. No matter your skills and interests, no matter the level of education and training you aspire to, there is likely a career for you in Pennsylvania’s oil and gas […]

Describe supply and demand and the economics resulting from decreased prices for natural gas?

When there is a scarsity of a given commodity or product and high demand from consumers, prices increase. Conversly, when there is an over supply of a given product or commodity and not enough demand, prices decrease. Today, given the prolific volumes of natural gas being produced in the Marcellus Shale and other shale formations […]

How can I get a job within this industry?

This is by far one of the more popular questions we received from our Ask About Shale initiative. While the Marcellus Shale Coalition (MSC) is not hiring at this point in time, our nearly 300 member companies have dozens of employment opportunities available here in Pennsylvania. We would encourage you to visit the MSC’s Job […]

What is more cost effective, build new refineries or repurpose existing oil refineries?

For a period of time, several Philadelphia-area refineries – a tremendous source jobs and economic activity – were in jeopardy of closing permanently for various reasons. But thanks to shale development, these regional institutions have been revitalized. MSC CEO Kathryn Klaber, in a Philadelphia Inquirer column, writes this about this positive progress underway: Philadelphia’s refinery […]

What grassroots plans does the shale project have in supporting and developing growth in the regional areas effected by the drilling?

MSC member companies are committed to creating strong working relationships with mineral- and land-owners, as well as the broader communities where we operate, with the shared goal of making positive and impactful contributions while meeting local needs. The tens of thousands of employees, who work each day to responsibly develop this clean-burning resource, overwhelmingly live […]

How do outside companies partner up with the Marcellus Shale industry?

 The natural gas industry’s robust supply chain is creating countless opportunities for small- and medium-sized businesses across our region. For its part, the MSC hosts frequent Supply Chain Forums, aimed at providing local businesses with important insight as to how best to capitalize on these opportunities. In fact, the MSC has also published a Supply […]