Marcellus Shale

One of the most important economic stories in the country today is the huge reserves of natural gas found in the Marcellus shale formation. This gas field lies under much of Pennsylvania and continues on into New York and West Virginia and elsewhere. The amount of natural gas estimated to be in this field is enormous; enough to supply the Northeast USA for many decades to come. In addition, the cost of extraction of the gas is low enough to make these filed feasible even if the price of gas stays at its current low level.

The Marcellus shale is now one of the biggest drivers of employment growth in Pennsylvania. It is estimated that by the end of 2010, something like 100,000 jobs in that state will exist just to support the extraction effort, jobs that simply did not exist in 2008. In today's poor job climate, the creation of 100,000 jobs is of major importance. Beyond the job growth, the production also provides a substantial source of cash to the many landowners in this area whose land has been leased for drilling.

The drilling methods being used in the area are also revolutionary. From each drilling site, the equivalent of seven or eight old style wells are being created with the use of horizontal drilling in the shale at depths like two miles below the surface. This means that many fewer drill sites mar the landscape or require access for support.

Despite the enormous economic implications for the region and the entire country, the drilling the Marcellus shale is under attack from environmentalists (mostly from the type who never met a project of which they approved.) Thus, there is scare talk about how the drilling will contaminate ground water even though there is no proof of any such problem. There are claims that the drilling will despoil the state forests in Pennsylvania, again without any proof of a problem. Lawmakers are being enlisted in the anti drilling effort both in Harrisburg and Washington.

To say the least, it is strange that the environmentalist groups attack natural gas drilling. After all, when natural gas replaces oil, the amount of pollution and greenhouse gases are cut substantially. Natural gas is the easiest and quickest way to move towards a substantial reduction in greenhouse gases. Apparently, none of this matters. The environmental zealots seem to want to return to life as it was in 1860. No power, no electricity, no cars and not much else.