New Research Details the Positive Economic Impacts from Marcellus Shale Drilling in PA

Some empirical data on the positive economic impacts of Marcellus Shale gas drilling in Pennsylvania:

Timothy W. Kelsey, a professor of agricultural economics at Penn State University in State College, Pa., recently presented data to the Progress Authority that spells out some of the economic and traffic impacts the drilling has had on counties where the highest amount of drilling has taken place, including Bradford County.

For example, between 2007 and 2009, the total amount of wages and salaries paid out to construction workers increased by 10 percent in counties where 90 or more Marcellus wells were drilled, while the total compensation paid to workers in the construction industry statewide declined by 6 percent, he said.

Also, between 2007 and 2009, the total amount of wages and salaries paid out to people working in the arts, entertainment and recreation sector of the economy increased by 17 percent in counties where 90 or more Marcellus wells were drilled, while the total compensation for workers in that sector of the economy increased statewide by only 1 percent, he said.

In Bradford County, which has the highest amount of Marcellus Shale drilling activity in the state, collection of the state sales tax increased by 21 percent from July 2007 to June 2010, while the sales tax collection dropped 3.8 percent statewide over that time, he said.*

*The Daily Review (Apr 19, 2011) – Data released on economic impacts of Marcellus drilling in Bradford County