EC Wire

Summer is here!  It’s also the beginning of “driving season,” so energy will be on the minds of most Americans more than usual over the next few months.  

America’s energy future is bright:  According to the International Energy Agency, the United States will overtake Saudi Arabia as the world’s leading oil producer by 2020!

But right now, we are facing a number of critical issues.  One of these is building an energy infrastructure that will support future development of US energy sources.

It seems so simple to say that we can produce all the oil and gas we want—but if it can’t be safely moved to provide our families, businesses, and public facilities with reliable energy, it means nothing.  Our energy infrastructure needs to be constructed to connect to new sources of supply and expanded to accommodate those that are significantly increasing.   Energy Citizens must make their voices heard on the need for better energy infrastructure, including transportation, pipelines, and refineries.

America must keep pace with its growing economy and its growing energy demands.  Focusing on new sources of natural gas, crude, and infrastructure to move them will be key to meeting our goals.  We have the resources, but we need the right policies and a better commitment from our leaders to make the most of them.

Politicians that were strongly opposed to hydraulic fracturing are reconsidering their stance after realizing the potential for shale gas to create jobs and increase energy security.  Unfortunately, this isn't happening in New York. Instead, Europe is beginning to embrace hydraulic fracturing after years of opposition. We hope Gov. Cuomo is paying attention.

The New York Times reports this week that European nations may begin allowing hydraulic fracturing. The leaders in these nations see hydraulic fracturing as a way to “create jobs and increase energy security — a potent argument for a continent uncomfortably reliant on natural gas from Russia.”

As the article points out, Europeans have long been resistant to allowing hydraulic fracturing. But they are beginning to see the economic and security benefits that it will bring. It would be nice if New York’s politicians were as open to considering the facts about shale gas development.

Gov. Cuomo is currently pushing an economic development program for upstate. Notably absent from that proposal is any hint that he will allow hydraulic fracturing. The governor knows that allowing shale gas drilling could create tens of thousands of jobs in upstate New York. It is perplexing that shale gas development isn't the centerpiece of his economic development plans.

The benefits that hydraulic fracturing brings to an area are undeniable. If New York’s politicians don’t want to look across the border to see the great things shale gas has done for Pennsylvania, maybe they will consider what’s happening in Europe. Around the world, people are benefiting from hydraulic fracturing. It’s time for New York to benefit, too.

Did you know that natural gas development supports over 2.8 million U.S. jobs? In the middle of an economic slowdown, natural gas production is creating jobs while other industries are shedding them. Thanks to shale gas, the number of jobs supported by this industry is set to grow substantially over the next few decades.

The Shale Gas Boom is Creating Jobs

Over the past five years, U.S. natural gas production has seen huge growth. This is largely due to the extraction of natural gas from shale rock. Using hydraulic fracturing, energy companies have found ways to recover gas that was once thought inaccessible. One result has been phenomenal job growth:

• 245,000 Pennsylvania jobs are supported by shale gas drilling.
• Pennsylvania counties with over 200 shale gas wells had 7% job growth from 2007 to 2011. Counties with few or no shale gas wells saw employment shrink by 3%.
• During the first quarter of 2012, Ohio’s shale gas industry added 5,800 jobs. The average annual salary of the core industry jobs was almost $74,000.
• Development of gas from the Barnett Shale in Texas created over 132,000 jobs.

Current job growth from shale gas drilling is strong, but it can be even stronger in the future:

• In Ohio, the number of Utica Shale jobs could grow from 2,275 in 2011 to 65,680 in 2014. By 2015, shale gas drilling could create $22 billion in new economic activity in that state.
• By 2020, robust shale gas development could create over 27,000 jobs in New York and, and over 30,000 jobs in West Virginia.
• Were New York to lift its moratorium on hydraulic fracturing, it could see over 15,000 new jobs created by 2015.

Boosting Local Small Businesses

Many of these jobs are directly related to shale gas drilling – working on the rigs, transporting equipment, and monitoring the hydraulic fracturing process. But the employment supported by shale gas drilling goes far beyond these types of jobs.

In Marcellus Shale drilling areas, local businesses have seen a large influx of new customers. Hotels, for instance, are setting record occupancy rates thanks to natural gas drilling.  Restaurants, hardware stores, and many other small businesses in shale gas country are also experiencing an economic boost.

Creating Manufacturing Jobs

The shale gas boom is creating jobs in other ways, too. For instance, manufacturers are opening up plants in the United States to take advantage of lower energy prices due to shale gas drilling. The petrochemical industry is also expanding thanks to the greater production of natural gas, one of its core raw materials.  

Thanks to shale gas production, 1 million manufacturing jobs could be created by 2025.

Shale Jobs Depend on Good Policy

These jobs depend on sound government policy. Pennsylvania, which welcomes shale gas development, has seen enormous job growth because of it. Its neighbor to the north, New York, has a ban on hydraulic fracturing, something that has caused it to lose out on energy jobs.

Energy Citizens need to encourage their elected officials to support policies that encourage shale gas development. From opposing hydraulic fracturing bans to allowing upgrades to our natural gas infrastructure, the actions in your state capitals and Washington, D.C., will play an important role in keeping the shale gas flowing.

Let your lawmakers know that supporting shale gas means supporting good-paying jobs for Americans!

The U.S. is in the midst of a shale gas production boom. This energy development is creating jobs and helping communities throughout the nation. Unfortunately, the lack of infrastructure to move this natural gas to market is threatening to slow down this job creation. It’s time for the U.S. to build the infrastructure to keep the energy economy booming!

Marcellus Shale Needs Pipelines to Thrive

Our natural gas infrastructure has met our needs for decades, but it does not meet today’s needs. This can have real consequences for our ability to produce energy in the U.S.

Business Week puts the problem in perspective:

“As much as 2 billion cubic feet of gas a day are set to flow from the lines in Pennsylvania, Ohio and West Virginia, bound for markets along the Eastern Seaboard, based on government and pipeline-company projections. About 1,000 Marcellus shale wells sit uncompleted, mainly because of a lack of pipeline infrastructure, according to the Energy Department.”

The story is the same in other areas of the country that have abundant natural gas supplies. Without new pipelines, this gas cannot be accessed. That means no new jobs and no new economic growth.

Consumers Pay When Pipelines are Lacking

Who pays when pipeline infrastructure isn’t built? The consumer.

Just look at the Northeast, where there are constraints on natural gas deliveries due to inadequate pipeline capacity. As the Energy Information Administration points out, this has “contributed to much higher natural gas prices at certain trading points in the Northeast compared to the rest of the United States.” 

Our Energy Future Depends on New Infrastructure

Not only will consumers pay more if our infrastructure is not updated, but our energy security will suffer, too.

Because of the increase in natural gas production, the U.S. has a golden opportunity to reduce our reliance on foreign energy imports. For us to move towards greater independence, however, we must have the infrastructure to transport this natural gas. We can’t produce natural gas if we can’t move it where it needs to go.

Without expanding this infrastructure, we will continue to be reliant on energy imports instead of using our own energy resources.

Infrastructure Construction is a Win-Win

What are the benefits when natural gas infrastructure is built or upgraded?

• Local jobs building and updating pipelines and other infrastructure;
• Greater access to markets for American energy;
• Less dependence on foreign sources of energy.

Our energy future depends on our oil and natural gas being able to travel to where it is needed. It’s unfortunate that some activists are opposing efforts to invest in our energy infrastructure. It’s up to Energy Citizens to fight for this infrastructure’s approval. We need to build next-generation pipelines and deploy new technology to reap the benefits of the shale gas revolution.

It’s time to build!

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