Full Title: The Economic Impacts of the Pennsylvania Marcellus Shale Natural Gas Play: An Update
Author(s): Timothy J. Considine, Ph.D. et all
Publisher(s): Penn State
Publication Date: May 1, 2010
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Description (excerpt):
Natural gas development stimulates the economy in two major ways: business-to- business spending and payments to land owners. Exploring, drilling, processing, and transporting natural gas requires goods and services from many sectors of the economy, such as construction, trucking, steelmaking, and engineering services. Gas companies also pay lease and royalty payments to land owners, who also spend and pay taxes on this income. Higher energy production stimulates employment, income, and tax revenues. This study estimates these economic impacts using an input-output model developed by the Minnesota IMPLAN Group, Inc., which is the same model used by the Pennsylvania Department of Labor (2010) in their study of green jobs. During 2009, Marcellus gas producers spent a total of $4.5 billion to develop Marcellus shale gas resources. Using the IMPLAN modeling system, we estimate that this spending generated $3.9 billion in value added, $389 million in state and local tax revenues, and more than 44,000 jobs (see Table ES1). During 2009, natural gas output averaged 327 million cubic feet per day of natural gas equivalents, which includes dry natural gas and petroleum liquids. Output at year-end 2009 was over 500 million cubic feet per day.