Natural gas is a winner for Pennsylvania and the whole country
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By Dan Weaver
Walking into a warm house on a blustery cold day. Turning a knob and having a working stove. Flipping the switch to turn on the lights. Having water when you turn on the tap.
These are just a few of the actions we go through every day without even thinking about the energy required to make these tasks possible. Like it or not, we live in an energy-dependent world. Our energy needs are not going to go away, plain and simple. In fact, with the increasing population and our global interconnectedness, energy demands are only expected to go up.
Luckily, Pennsylvania is located over top of a crucial component to meeting our energy needs – natural gas.
Natural gas is more abundant, reliable, and affordable than many other energy sources. This trifecta of benefits has helped to grow the natural gas industry in Pennsylvania and is bringing generational economic opportunities in the process.
Thanks to the prolific Marcellus and Utica shale plays, our state is one of the highest natural gas producers in the country – second only to Texas. As a result, the commonwealth plays a crucial role in powering our country. But this shouldn’t come as a surprise. Our region has a history of being rich in natural resources. From the days of the first oil discovery to providing the coal and steam that helped to power the industrial revolution to today, where we are at the forefront of natural gas production and innovation. Pennsylvania is a major player when it comes to energy production.
This status as an energy leader has also helped to grow the Commonwealth’s economy. According to a report released last fall, in 2022 alone, the energy sector generated more than $41 billion in economic activity for the state. When looking at the natural gas industry specifically as it relates to Pennsylvania, in 2022, more than $3 billion was paid in state and local taxes, with an additional $2.6 billion in federal taxes.
The industry has also helped to grow private sector jobs in Pennsylvania. This includes those positions directly tied to the industry and the numerous downstream and indirect jobs and opportunities that have been created as a result of natural gas drilling in the state. In fact, more than 123,000 jobs within the commonwealth are supported by the natural gas industry. These are good-paying jobs that in turn help to promote thriving communities. In some cases, the industry has breathed new life into areas that had been stagnant for decades – presenting new opportunities for growth and revitalization.
But the benefits of natural gas don’t end there. Natural gas has proven to be a cleaner energy source. The data from government resources shows that there is a direct correlation between lower emissions and the use of natural gas. Pennsylvania is the perfect case study. As natural gas usage has increased, the state’s greenhouse gas emissions have gone down. Between 2005 and 2018, there was a 40% reduction in volatile organic compounds and an 81% reduction in nitrogen oxides.
So, in addition to being abundant, affordable and reliable, we can also add environmentally beneficial to the list of why natural gas is a win for Pennsylvania and our country as a whole.
Our energy needs are real. And our energy solutions need to be realistic as well. We need to be strategic, forward-thinking and innovative in our approach. We need to efficiently and effectively utilize the resources that are at our fingertips – or as it pertains to natural gas, are literally under our feet.
Natural gas has cemented Pennsylvania’s role as a global energy leader. And natural gas is the key to our country’s energy future. As our energy needs increase, we need pragmatic policies that support Pennsylvania’s natural gas and oil industry, such as permitting reform, to help build and maintain critical infrastructure and to ensure access to energy by bridging the gap between where energy is produced and where it is used.
Dan Weaver is president and executive director the Pennsylvania Independent Oil and Gas Association (PIOGA).