PITTSBURGH, PA – September 27, 2023 – Natural gas development is fundamental to the health and strength of Pennsylvania’s economy, supporting well over 100,000 family sustaining careers, boosting state tax revenues, and generating billions in economic benefits, according to a new economic impact analysis commissioned by the Marcellus Shale Coalition (MSC).
The analysis, released at the kickoff of the SHALE INSIGHTTM conference, underscores the economic benefits of natural gas development across the entire Commonwealth as well as the sector’s projected impacts through 2050.
Pennsylvania’s natural gas sector supports ~123,000 statewide jobs and contributed more than $41 billion in 2022 state economic activity, according to the report conducted by energy economists at FTI Consulting, Inc., a global business advisory firm. Additionally, natural gas production royalties paid to private and government entities reached $6.3 billion in 2022 alone.
“Energy is the lifeblood of Pennsylvania’s economy, and our sector works hard every day to safely deliver affordable, clean and reliable energy for our country and the world,” MSC president David Callahan said. “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.”
The MSC’s study analyzes the impacts of natural gas development solely within Pennsylvania’s borders. As the report highlights, in 2022, the industry:
Supported 123,000 jobs, with an average wage of ~$97,000. That’s 113% higher than the average median wage in the state and part of the over $12 billion provided in labor income.
Contributed more than $41 billion in economic activity. This boosted the state’s gross domestic product (GDP) by nearly $25 billion.
Generated $3.2 billion in state and local tax revenues, $279 million of which supported the Impact Fee that is distributed to communities in all 67 Pennsylvania counties, as well as various environmental and conservation programs.
Contributed $2.6 billion in federal tax revenues.
Paid $6.3 billion in royalties to private and government entities.
“Pennsylvania is blessed with world-class energy resources as well as a talented and diverse workforce, especially our partners in the building trade unions who are vital to the sector’s continued growth. 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,” Callahan added.
Source: Marcelluscoalition.org
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