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FOR IMMEDIATE RELEASE |
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State
Rep. Tim Solobay |
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Solobay releases study on development of Marcellus Shale
HARRISBURG, July 27 – At a news conference at the state Capitol today, state Rep. Tim Solobay, D-Washington, released the findings of a Pennsylvania State University economic study of the Marcellus Shale.
The study estimated that in 2010, the industry will generate 98,000 new jobs, provide an economic impact of $14.17 billion, and generate $800 million in state and local tax revenue, more than 30 percent of which will remain at the local level. By 2020, the Marcellus industry would provide almost 175,000 jobs, provide a $25 billion economic impact, and generate almost $1.4 billion in state and local tax revenues.
"The high level of drilling activity in Pennsylvania is partially a result of relatively lower taxes. And the growth of the Marcellus industry this report projects shows its importance to the state's economy," Solobay said. "But this report sends a strong warning that if we impose a severance tax on natural gas production, we will miss out on this opportunity. Pennsylvania has the hardest-working job force in America and the Marcellus represents an opportunity to prove that we’re up for the challenge of developing the largest natural gas field in the United States."
The report said with imposition of a natural gas severance tax, drilling activity would decline more than 30 percent and result in an estimated $1.4 billion net loss in the present value of tax revenue between now and 2020. Other states are currently examining methods of reducing tax impacts on the energy industry to attract highly competitive capital investments that create new jobs.
The study estimated that the Marcellus Shale may contain 2,445 trillion cubic feet of natural gas reserves in place with recoverable resources amounting to 489 trillion cubic feet – or enough natural gas to last the entire United States for more than 20 years. The study also said the Marcellus Shale could support Pennsylvania's economy for more than 100 years.
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