New Penn State Study on Economic Impacts of Marcellus Drilling
A new 62-page study (embedded below) conducted by Penn State and the Pennsylvania College of Technology looks at the economic impact of natural gas drilling in PA. The study, titled “Economic Impacts of Marcellus Shale in Pennsylvania: Employment and Income in 2009,” uses a new (and according to the authors more accurate) methodology to calculate gas drilling’s economic impacts on local communities. The authors suggest the economic impacts of Marcellus drilling for local communities are not as big as previously reported.
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Chesapeake Energy CEO Aubrey McClendon on Monday appeared on Jim Cramer’s Mad Money show on CNBC to talk about the company’s new, oil-rich discovery in the Utica Shale of eastern Ohio. He had some fascinating things to say, including that he expects there to be some 25,000 wells drilled in the Ohio Utica Shale, and that there will be $10 billion per year for at least 20 years (or $200 billion) of investments in the Ohio Utica Shale alone. Yikes! No wonder Gov. John Kasich is “gushing” about Chesapeake’s discovery. An investment of 1/5 of a trillion dollars is a major big deal for Ohio—not only for landowners but also for businesses and for those who will be employed by drilling and associated industries. You cannot overstate how important this discovery is.
One of the favorite arguments used as a smokescreen by those opposed to Marcellus drilling is the classic class warfare argument. But it takes a lot of mental gymnastics to make it work in this case as the people who are supposedly the “fat cats” and the “lucky few winners of life’s lottery” are typically family farmers who have been scraping by for generations, just trying to hold on to the land they love. The fact that some of them “get rich” from gas drilling just doesn’t sit right with the elite city-dwellers. Kind of invokes images of the Beverly Hillbillies.