Full Title: Risks for New Natural Gas Development in Appalachia
Author(s): Eric de Place
Publisher(s): Ohio River Valley Institute
Publication Date: March 9, 2021
Full Text: Download Resource
Description (excerpt):
New gas field developments in Appalachia are unlikely to be profitable as the US energy system undergoes rapid decarbonization, according to a report from the Stockholm Environment Institute’s US Center (SEI) and the Ohio River Valley Institute. Rosy industry projections of a gas-fueled petrochemical buildout led many Appalachian communities to bank on job growth that never arrived and now may never materialize.
The report, “Risks for New Natural Gas Development in Appalachia” is the first quantitative assessment of how Appalachia’s gas industry would fare in a low carbon future, and it spells trouble for an already troubled industry. The report is also the most detailed publicly-available analysis of the future prospects for natural gas development in the region. The authors analyzed 200 prospective gas projects in Pennsylvania, Ohio, and West Virginia, using data from Rystad Energy, a leading energy research and business intelligence agency. By assessing each field’s capital and operating costs — as well as the gas prices necessary to keep such fields profitable — the authors found that the gas industry in Appalachia is vulnerable to sustained, low prices of domestic gas and natural gas liquids.