The development of the Marcellus Shale play in West Virginia has the potential for significant economic development for the state, according to a new report from the West Virginia University College of Business and Economics, Bureau of Business and Economic Research. The report also examines potential impacts associated with the development of the shale play from 2010 to 2015 as well as the legal, regulatory and environmental issues associated with further development.
$12 Billion in Business and 7,600 Jobs
“West Virginia’s natural gas industry accounted for over $12 billion in business volume and created over 24,400 jobs in 2009,” said Dr. Tom S. Witt, BBER director and co-author of the study. “Out of this total, our study estimates that the Marcellus shale play accounted for the creation of 7,600 jobs and $2.35 billion in business volume, making it a significant contributor to the economic health of our state. The potential exists for upwards of nearly 20,000 jobs by 2015 if drilling grows at a 20 percent rate each year.”
“This study documents the economic potential of the Marcellus shale play. However, its potential contributions to our state will only be possible with well informed public policy related to the taxation, regulation and environmental impact affecting the industry in our state,” said Corky DeMarco, executive director, West Virginia Oil and Natural Gas Association, which commissioned the report.
The Marcellus is the "Tip of the Iceberg"
“Although the results of this study are encouraging, the general consensus throughout the industry is that the Marcellus only represents the tip of proverbial iceberg,” said Jim Crews, Nisource/Columbia Gas Transmission and WVONGA president. “Horizontal drilling and hydraulic fracturing technology will be exported to other shale and unconventional hydrocarbon sources in the basin, including previously abandoned formations and the economic results will be exponential.”
$12 Billion in Business and 7,600 Jobs
“West Virginia’s natural gas industry accounted for over $12 billion in business volume and created over 24,400 jobs in 2009,” said Dr. Tom S. Witt, BBER director and co-author of the study. “Out of this total, our study estimates that the Marcellus shale play accounted for the creation of 7,600 jobs and $2.35 billion in business volume, making it a significant contributor to the economic health of our state. The potential exists for upwards of nearly 20,000 jobs by 2015 if drilling grows at a 20 percent rate each year.”
“This study documents the economic potential of the Marcellus shale play. However, its potential contributions to our state will only be possible with well informed public policy related to the taxation, regulation and environmental impact affecting the industry in our state,” said Corky DeMarco, executive director, West Virginia Oil and Natural Gas Association, which commissioned the report.
The Marcellus is the "Tip of the Iceberg"
“Although the results of this study are encouraging, the general consensus throughout the industry is that the Marcellus only represents the tip of proverbial iceberg,” said Jim Crews, Nisource/Columbia Gas Transmission and WVONGA president. “Horizontal drilling and hydraulic fracturing technology will be exported to other shale and unconventional hydrocarbon sources in the basin, including previously abandoned formations and the economic results will be exponential.”
