Energy Environmental Blog

Shale Development? Politics Matter.

Written by Greg Russell | Jul 28, 2011 11:17:49 AM

The WSJ has a good article on the substantial impact environmental politics can have on a state's oil and gas - and job - development.  Comparing Pennsylvania and New York, it observes:  "More than 2,000 wells have been drilled in the Keystone State since 2008, and gas production surged to 81 billion cubic feet in 2009 from five billion in 2007. A new Manhattan Institute report *** estimates that a typical Marcellus well generates some $2.8 million in direct economic benefits from natural gas company purchases; $1.2 million in indirect benefits from companies engaged along the supply chain; another $1.5 million from workers spending their wages, or landowners spending their royalty payments; plus $2 million in federal, state and local taxes. Oh, and 62 jobs."

But, consider Pennsylvania's northern neighbor, which has in effect imposed a moratorium on Marcellus drilling:  "Consider New York's Broome County, which borders Pennsylvania and from which you can spot nearby rigs. The county seat of Binghamton ought to be a hub for shale commerce, but instead its population is falling as its young people leave for jobs elsewhere."  (Emphasis is ours.)

Read it all.  Especially if you're a policymaker.