The Power of Natural Gas

I write frequently about the use of American natural gas, new production methods and the bonanza of the Marcellus shale and other smaller deposits found around the country. A battle has been brewing in the Notheast about drilling methods and claimed resulting pollution. Without a doubt, the key state in that battle is Pennsylvania where the majority of the Marcellus shale is located. I have stated many times that the Republicans who control the governorship and the legislature in that state will not take steps that will kill off the drilling industry there, unlike the Democrats in New York who have put the entire drilling effort on hold. The April unemployment statistics bolster that argument. First, over 10% of all new jobs created in the USA during April were in Pennsylvania even though that state has only about 3% of the American population. Second, of the ten largest states, Pennsylvania has the lowest unemployment rate. The difference in each instance is the natural gas deposits in the Marcellus. The drilling efforts create jobs. The ongoing production also creates jobs. The royalty payments to landowners on whose land the wells are drilled creates wealth which in turn creates jobs. Indeed, estimates are that Pennsylvania will grow about 1 to 1.5% faster than the national average as a result of this natural gas industry within its borders. In these times of difficult state finances, it is very unlikely that the GOP in Pennsylvania will turn off drilling and accept the resulting financial crisis.