Skip to main content

Additional tax on natural gas industry could stunt job growth in Pennsylvania


Reid Porter| 202.682.8114 | porterr@api.org


Harrisburg, Pa., March 3, 2015—API-PA Executive Director Stephanie Catarino Wissman criticized Governor Wolf’s proposed budget plan for including an additional severance tax on natural gas development in Pennsylvania that will harm job growth and weaken the state’s economy.

“The governor’s proposed tax hike could threaten the future of our state’s best job creators,” said Wissman. “The current local impact tax, which is collected from every shale drilling site in the state, has distributed more than $630 million to communities since 2012 – including more than $224 million in just 2014. That’s on top of over $2.1 billion in state and local taxes already generated by our industry.”

As recorded by the Governor’s Department of Environmental Protection, Pennsylvania continues to shatter the commonwealth’s records in natural gas production, producing more natural gas each year. In 2014 the commonwealth was among the top two states in the nation for natural gas production with four trillion cubic feet of natural gas produced, a 30 percent increase over 2013's record production numbers.

“More growth means more jobs and more revenue; higher taxes mean driving development away from Pennsylvania, costing jobs and the loss of revenue which can pay for education, transportation, healthcare, and other state programs,” said Wissman. “The governor should focus on choosing forward-looking pro-energy policies that will continue to benefit the commonwealth and its citizens.”

API-PA is a division of API, which represents all segments of America’s oil and natural gas industry. Its more than 625 members produce, process, and distribute most of the nation’s energy. The industry also supports 9.8 million U.S. jobs and 8 percent of the U.S. economy.