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OP-ED: Natural gas: A catalyst for economic growth

4 min read
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A dozen years ago, as our economy began to heal from the depths of the Great Recession, natural gas development lifted our region’s economy, creating good-paying jobs, filling union halls, and getting Western Pennsylvanians working again. Today, as we begin our gradual pandemic recovery, natural gas will be there again, serving as a catalyst for growth.

Like many businesses and industries, energy producers are facing tough headwinds. The count of active U.S. drilling rigs hit the lowest level since 1949 and, in Pennsylvania, quarter-over-quarter natural gas production declined, representing a slowdown in activity.

As we look ahead, though, modern society demands reliable, affordable, clean energy – and that’s exactly what Pennsylvania-produced natural gas provides.

As the nation’s second largest natural gas producing state, behind only Texas, Pennsylvania is well-positioned to continue creating economic, environmental, and national security benefits tied to responsible natural gas development.

Natural gas “has resulted in a growing population, low taxes, and more job opportunities for our county,” Washington County Chamber of Commerce President and CEO Jeff Kotula recently said. “Now we are in a growth position again with the cracker plant and the petrochemical businesses that will follow and want to take full advantage of those opportunities.”

Mr. Kotula’s perspective – that natural gas is a critical key to unlocking our economy and manufacturing growth – is shared broadly across our region.

Thousands of workers, mostly union, are getting back to work constructing Shell’s petrochemical facility in Beaver County, along with many other small businesses along the plant’s supply chain. Once complete, that facility will transform locally produced natural gas liquids into the building blocks for durable plastic goods and supplies.

In fact, this pandemic – as challenging and as painful as it has been – would be even worse if it were not for the medical supplies produced from American oil and natural gas. When the demand for personal protective equipment soared in response to the spread of COVID-19, brave men and women stepped up at the Braskem America manufacturing facility in Marcus Hook, Pa., and voluntarily lived at the plant for 28 days to produce critical medical supplies.

Hospitals in the commonwealth have also turned to affordable, locally produced natural gas to reliably power and heat facilities. In Wexford, Allegheny Health Network partnered with Peoples Natural Gas for on-site natural gas heat and power generation. In the northeastern part of Pennsylvania, natural gas produced on the site of Procter & Gamble’s largest U.S. manufacturing facility, is responsible for the development of critical household supplies.

The affordability of natural gas is also responsible for a potential natural gas fertilizer plant in Clinton County. That facility will tap into Marcellus gas and employ hundreds of Pennsylvanians to produce product for the commonwealth’s agriculture and farming community.

Those are just several of the many ways that natural gas is a catalyst for growth, economic progress and a stronger, more prosperous future.

However, these shared and positive opportunities are not guaranteed. Misguided policies and regulatory overreach threaten this progress. Recently, it was disappointing to see Governor Wolf’s veto of legislation that would have driven manufacturing growth, particularly in rural parts of the central Pennsylvania. Strongly supported by area labor unions, this legislation would leverage our abundant natural gas and help create good-paying, family wage sustaining jobs by encouraging manufacturers to locate in the commonwealth.

As lawmakers negotiate short- and long-term budgets, it should not be lost on anyone that additional and even higher energy taxes would undermine this engine of growth by threatening investments and jobs, not to mention burdening Pennsylvanians with higher energy costs at a time when unemployment is soaring to historic levels.

Natural gas is key to unlocking the future of manufacturing and economic growth, and we must seize this opportunity to work together to find solutions that leverage this resource for generations to come.

Dave Spigelmyer is president of the Pittsburgh-based Marcellus Shale Coalition.

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