PA $2.1B Tax Credit Bill for H2, Natural Gas Passes & Goes to Gov
As we mentioned yesterday, House Bill (HB) 1059, legislation to provide $142 million annually in state tax credits for several purposes, including clean hydrogen hubs, use of natural gas, semiconductor manufacturing, and milk processors, was approved by a Senate committee and is on a fast track to becoming signed into law (see PA Senate Ctte Approves Tax Credit for Hydrogen, Natural Gas). Not long after a Senate committee approved it, the full Senate voted to pass it with a large bipartisan majority (41-8), followed by the House voting to concur with the Senate’s changes (139 to 59). The bill is now on Gov. Tom Wolf’s desk for his signature, which is expected (maybe even today).
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Last Thursday, representatives from manufacturing and the energy sectors delivered their thoughts on the future of the national and local economies at the 2022 Economic Outlook Conference sponsored by the Wheeling Area Chamber of Commerce. Front and center at the event was talk about the role of shale energy in revitalizing West Virginia and making it THE go-to place to set up new manufacturing operations. One speaker pointed out: “(West Virginia) is the only place in the world where you can build your manufacturing facility on top of your natural resources, your energy, and your raw materials in the middle of the biggest market in the world.”
Yesterday the Pennsylvania Independent Oil & Gas Association (PIOGA) held its annual Marcellus to Market conference at Hollywood Casino at The Meadows in Washington, PA. The event explored efforts to promote manufacturing in Pennsylvania, natural gas as a transportation fuel, the future of the long-rumored Appalachian Storage Hub, and the latest regarding pipelines and other means of delivering natural gas to market. A key focus for the event and topic for a panel discussion in the morning was workforce recruiting, development, and retention. MDN friend Charlie Schliebs, Chairman of the Energy Innovation Center Institute and Managing Director of Stone Pier Capital Advisors, moderated this lively panel.
On Monday, local business leaders in Jefferson County, OH, were treated to an update on the Utica Shale and how local manufacturers can benefit from the growth in the shale industry. According to Robert Naylor, executive director for the Jefferson County Port Authority, “the (purpose) of the workshop was to stress or demonstrate how the business community — vendors and manufacturers — could enter the energy supply chain to create jobs, workforce development and overall economic game for our region.” Two powerhouse speakers from 
Fool me once, shame on you. Fool me every time, shame on me. This is the trap that trade unions have fallen into by backing Democrat candidates like Josh Shapiro for Governor in Pennsylvania. On one level, it makes no sense. Why would unions back someone who will, as soon as he takes office, begin to enact policies that kill union jobs (pipeline workers, construction workers, welders, plumbers, etc.)? Shapiro has done nothing but attack the shale industry since he took office as Attorney General. Yet a number of trade unions whose members work on shale jobs have backed Shapiro–to the tune of $3 million. Why?
It finally seems as if economic activity is picking up once again in the Marcellus/Utica. And we don’t mean just shale drillers and pipeline companies. The companies that supply those companies–the supply chain–is seeing an uptick in business, according to an article appearing in the Pittsburgh Business Times. Companies like U.S. Steel, MSA, and Steel Nation are reporting strong increases in sales in 2022.
There’s no way for the Bidenistas to put lipstick on this pig–but they tried anyway. The Biden administration’s Dept. of Energy published its annual U.S. Energy and Employment Report (USEER) yesterday. The report shows HUGE fossil fuel industry job losses in 2021. The report finds the fuels technology sector experienced job losses totaling 29,271 jobs in 2021, down 3.1% from 2020, with the majority of losses coming from the fossil fuel industry.
The largest private investment in the state of West Virginia in history, not to mention the largest investment for the company making it, Nucor Steel, is happening because of abundant, cheap, Marcellus/Utica natural gas. Nucor is building a $2.7 billion new sheet steel mill in Mason County, WV, largely due to locally sourced and affordable energy.
As we told you last week, Energy Transfer, during its first quarter update, spoke about the now-completed Mariner East pipeline system that flows NGLs, including ethane, propane, and butane, from eastern Ohio and southwestern Pennsylvania all the way to southeastern PA and the Marcus Hook terminal (see 
Last week the Energy Workforce & Technology Council, a national trade association for the energy technology and services sector representing those who work in the technology-driven energy value chain, released data from the Bureau of Labor Statistics that show March employment in the U.S. oilfield services and equipment sector rose by an estimated 2,698 jobs to 608,702. We’re still almost 100,000 jobs down from a pre-pandemic high of 706,528, but the numbers are moving in the right direction.
In the early days of the Marcellus and Utica Shale, a number of studies and predictions were made about how the industry would bring tens of thousands of jobs and inject billions of dollars into state economies. In Ohio, a Cleveland State University (CSU) report issued in 2012 predicted that Ohio’s then-growing fracking industry would add 66,000 direct and indirect jobs and $5 billion a year to the state’s economy by the end of 2014 (see