Binghamton City Council Must Weigh Economic Benefits of Safe, Responsible Natural Gas Drilling

Posted on December 21, 2011 by admin

Drilling ban would deny residents of economic opportunity.

Hamburg – The Independent Oil & Gas Association of New York (IOGA of NY) today urged the Binghamton City Council to withdraw a scheduled vote to ban hydraulic fracturing in the city limits.

IOGA of NY called on the council to not follow the path of other misinformed communities and act in the best interests of Binghamton, its residents, the local economy and the unemployed.

Natural gas drilling and hydraulic fracturing is a proven, trusted and highly scientific technology used to extract water, oil or natural gas from deep below the Earth’s surface. It has been performed 1.1 million times nationwide over the past 60 years. In Broome County, one gas well could yield an average of $385,000 annually in county revenue alone, according to a recently released IOGA of NY tax calculator, which is available at www.iogany.org.

“These proposals ignore the reality of our industry’s work and history in New York; these proposals have no basis in fact,” said Brad Gill, IOGA of NY executive director. “There is no hazard or risk facing Binghamton, but rather hope and opportunity waiting at the door. The council has the opportunity to get this right – to create a new prosperity for a great city.”

IOGA of NY urges the Binghamton City Council to consider the following:

• In 2005, approximately $53 million was paid to primarily rural landowners in New York, in the form of royalties on oil and gas production. Royalties will increase tremendously with Marcellus Shale exploration;
• In 2010 Pennsylvania’s Marcellus Shale industry “triggered $11.2 billion in economic activity, generated $1.1 billion in state and local taxes, and supported nearly 140,000 jobs,” according to the state’s Department of Labor and Industry. Also in 2010, natural gas companies paid out more than $1.6 billion in lease and bonus payments to landowners, the department reported;
• A December 2011 report by IHS Global Insight showed natural gas production in the United States will support 870,000 jobs and result in an additional $118 billion in economic impact over the next four years;
• A June 2011 study by the Massachusetts Institute of Technology’s Energy Initiative (MITei) concluded that natural gas is abundant and can be produced at low cost. Researchers also found that natural gas will continue to grow as a transportation fuel and will play a major role in the economy in that less expensive fuel will bolster manufacturing and other industries.

While oil and natural gas companies in New York have operated responsibly and with strict adherence to all local, state and federal regulations – and have achieved an enviable safety record – an inaccurate and unfair portrait has been painted about the companies and people who have worked for years to help power New York’s economy by exploring for clean-burning natural gas.

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Shale boom could create a million manufacturing jobs

Posted on December 15, 2011 by admin

By Joe Napsha
PITTSBURGH TRIBUNE-REVIEW
Thursday, December 15, 2011

Developing the nation’s vast natural gas shale reserves could create 1 million manufacturing jobs by the year 2025 and save manufacturers $11.6 billion a year because of a low-priced and stable gas supply, according to a report released on Wednesday.

The amount of gas in the Marcellus shale reserves in Pennsylvania, New York and West Virginia, and about 25 other shale plays in the United States, estimated at 862 trillion cubic feet, is sufficient to be “absolutely a game-changer for the U.S. economy,” said Jay Timmons, president of the National Association of Manufacturers, a D.C.-based trade group.

The annual savings that manufacturers could experience were determined by combining gas consumption levels with potentially lower gas prices if a large amount of shale gas is produced.

The job creation projected in the 16-page report, “Shale Gas: A Renaissance in U.S. Manufacturing,” is based on a high level of shale gas production. The jobs would be created by companies expanding or building new plants, as well as companies bringing manufacturing jobs back to the United States, said Robert McCutcheon, U.S. industrial products leader for PricewaterhouseCoopers LLC, which produced the report with the manufacturer’s association.

Development of the unconventional shale gas more than a mile underground would most likely result in manufacturing jobs being created by companies in the chemicals, metals and industrial manufacturing sectors, said McCutcheon, who is based in PricewaterhouseCooper’s Pittsburgh office.

“The number of U.S. chemicals, metals and industrial manufacturing companies that disclosed shale gas potential and its impact so far in 2011 easily surpassed that of the last three years combined, indicating this is of growing importance in the outlook of U.S. manufacturers,” McCutcheon said.

The report did not specify how much of the projected job creation would be associated with development in the Marcellus shale reserves or how many jobs Pennsylvania might gain from the increased gas exploration and production.

A potential limiting factor to the projected economic benefits is the environmental impact from hydraulically fracturing the wells with millions of gallons of water laced with chemical additives, McCutcheon said. The natural gas industry must conduct exploration and production in an environmentally safe manner, he said.

Joe Napsha can be reached at jnapsha@tribweb.com or 724-836-5252.

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More to Learn in Wyoming Study

Posted on December 13, 2011 by admin

Statement atributable to Jim Smith, IOGA of NY spokesman

“The findings in Wyoming are preliminary and it appears there are still unanswered questions regarding cause and effect, which should be addressed through peer review.

New York’s regulatory structure is comprehensive and will be the most protective in the country when it is complete. Drawing a conclusion about what might occur in New York based on incomplete analysis from another state with its own unique geology is clearly not science, but rather speculative at the moment.

However, if the EPA’s analysis and recommendations strengthen the country’s protection of its natural resources it will be embraced.”

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Jobs, Jobs, Jobs

Posted on December 8, 2011 by admin

New ‘Fuel For Thought’ video touts employment growth and economic benefits of shale gas development

Hamburg, NY – Natural gas development in Pennsylvania is leading to tremendous increases in jobs and economic stimulus, and it can happen in New York, according to the newest video in the Fuel For Thought series.

S. Dennis Holbrook of Norse Energy, who is featured in “Jobs For New Yorkers,” cites Pennsylvania’s job growth and positive economic impact in predicting similar success for New York once the state Department of Environmental Conservation completes an environmental review of high volume hydraulic fracture stimulation and horizontal drilling.

“We’re talking about billions of dollars in economic impact, and tens of thousands of new jobs, and all of the supporting industries that are being driven to Pennsylvania and taking advantage of this tremendous opportunity,” Holbrook says in the segment.

As recently as Dec. 6, a new report from IHS Global Insight showed that natural gas production in the United States will support 870,000 jobs and result in an additional $118 billion in economic impact over the next four years. The shale gas contribution to the U.S. gross domestic product (GDP) was more than $76.9 billion in 2010. In 2015 it will be $118.2 billion and will triple to $231.1 billion in 2035, the report concluded.

The videos are available on IOGA of NY’s Facebook page and  Vimeo page..

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IOGA of NY Hails New Shale Gas Economic Impact Study

Posted on December 8, 2011 by admin

The following is attributable to Brad Gill, executive director of the Independent Oil & Gas Association of New York.

Note: Natural gas production in the United States will support 870,000 jobs and result in an additional $118 billion in economic impact over the next four years, a report from IHS Global Insight shows.

“This may be the strongest and most significant study to date that demonstrates the sheer positive power that continued shale gas development will bring to America. The benefits from clean-burning natural gas are clear and abundant: vast positive economic impact, hundreds of thousands of jobs, unprecedented tax revenues, lower energy costs and a boost to industrial production.”

From the IHS report:

  • In 2010, the shale gas industry supported more than 600,000 jobs; by 2015 the total will likely grow to nearly 870,000 and to more than 1.6 million by 2035;
  • Nearly $1.9 trillion in cumulative capital investments are expected to be made between 2010 and 2035;
  • Annual capital expenditures, especially strong in the early years, will grow to $48.1 billion in 2015;
  • The shale gas contribution to the U.S. gross domestic product (GDP) was more than $76.9 billion in 2010; in 2015 it will be $118.2 billion and will triple to $231.1 billion in 2035;
  • Over the next 25 years, the shale gas industry will generate more than $933 billion in tax revenues for local, state and the federal governments; and
  • Savings from lower gas prices, as well as the associated lower prices for other consumer purchases, equate to an annual average addition of $926 in disposable income per household between 2012 and 2015, and increase to more than $2,000 per household in 2035 on an annual basis.
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