New York Marcellus Shale [electronic resource] : Industry boom put on hold
- Oak Ridge, Tenn. : Distributed by the Office of Scientific and Technical Information, U.S. Dept. of Energy, 2012.
- Physical Description:
- 16 pages : digital, PDF file
- Additional Creators:
- United States. Department of Energy. Office of Scientific and Technical Information
- Key catalysts for Marcellus Shale drilling in New York were identified. New York remains the only state in the nation with a legislative moratorium on high-volume hydraulic fracturing, as regulators and state lawmakers work to balance the advantages of potential economic benefits while protecting public drinking water resources and the environment. New York is being particularly careful to work on implementing sufficiently strict regulations to mitigate the environmental impacts Pennsylvania has already seen, such as methane gas releases, fracturing fluid releases, flowback water and brine controls, and total dissolved solids discharges. In addition to economic and environmental lessons learned, the New York Department of Environmental Conservation (DEC) also acknowledges impacts to housing markets, security, and other local issues, and may impose stringent measures to mitigate potential risks to local communities. Despite the moratorium, New York has the opportunity to take advantage of increased capital investment, tax revenue generation, and job creation opportunities by increasing shale gas activity. The combination of economic benefits, industry pressure, and recent technological advances will drive the pursuit of natural gas drilling in New York. We identify four principal catalysts as follows: Catalyst 1: Pressure from Within the State. Although high-volume hydraulic fracturing has become a nationally controversial technology, shale fracturing activity is common in every U.S. state except New York. The regulatory process has delayed potential economic opportunities for state and local economies, as well as many industry stakeholders. In 2010, shale gas production accounted for $18.6 billion in federal royalty and local, state, and federal tax revenues. (1) This is expected to continue to grow substantially. The DEC is under increased pressure to open the state to the same opportunities that Alabama, Arkansas, California, Colorado, Kansas, Louisiana, Montana, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, West Virginia, and Wyoming are pursuing. Positive labor market impacts are another major economic draw. According to the Revised Draft SGEIS on the Oil, Gas and Solution Mining Regulatory Program (September 2011), hydraulic fracturing would create between 4,408 and 17,634 full-time equivalent (FTE) direct construction jobs in New York State. Indirect employment in other sectors would add an additional 29,174 FTE jobs. Furthermore, the SGEIS analysis suggests that drilling activities could add an estimated $621.9 million to $2.5 billion in employee earnings (direct and indirect) per year, depending upon how much of the shale is developed. The state would also receive direct tax receipts from leasing land, and has the potential to see an increase in generated indirect revenue. Estimates range from $31 million to $125 million per year in personal income tax receipts, and local governments would benefit from revenue sharing. Some landowner groups say the continued delay in drilling is costing tens of thousands of jobs and millions of dollars in growth for New York, especially in the economically stunted upstate. A number of New York counties near Pennsylvania, such as Chemung, NY, have experienced economic uptick from Pennsylvania drilling activity just across the border. Chemung officials reported that approximately 1,300 county residents are currently employed by the drilling industry in Pennsylvania. The Marcellus shale boom is expected to continue over the next decade and beyond. By 2015, gas drilling activity could bring 20,000 jobs to New York State alone. Other states, such as Pennsylvania and West Virginia, are also expected to see a significant increase in the number of jobs. Catalyst 2: Political Reality of the Moratorium. Oil and gas drilling has taken place in New York since the 19th century, and it remains an important industry with more than 13,000 currently active wells....
- Published through SciTech Connect.
Energy Solutions Forum, Inc. (United States)
View MARC record | catkey: 14088131