Energy Tomorrow Blog
Posted June 26, 2020
Pennsylvania promises to again be a battleground state this year, and former Vice President Joe Biden was in Lancaster this week to talk about health care and the coronavirus. At some point voters in the nation’s No. 2 energy-producing state will want to know what he thinks about natural gas and oil.
Our industry supports hundreds of thousands of jobs in Pennsylvania, furnishes tens of billions of dollars in wages and contributions to the commonwealth’s economy. Nearly $2 billion in impact fee revenue from natural gas production has gone to the state – distributed to counties and municipalities to fund public safety, water and sewer projects, environmental programs and more.
Natural gas and oil are critical to Pennsylvania and to the United States, and any policy or program that would ban or severely restrict safe fracking, impacting natural gas and oil production, could have significant energy and economic effects. It’s not just API making the policy argument for energy and against banning fracking.
Posted February 18, 2020
Another year, another punitive natural gas tax proposal from Pennsylvania Gov. Tom Wolf, his sixth bid for a severance tax in six years.
We say “punitive,” because Wolf’s tax hike would effectively punish an industry that has been good for Pennsylvania, contributing $1.7 billion in impact fees since 2012 while boosting the commonwealth’s economy and supporting hundreds of thousands of jobs.
Posted January 14, 2020
America’s natural gas and oil revolution has benefitted cities across the nation by fueling manufacturing, boosting agriculture and growing local economies. Case in point: Moon Township – located northwest of Pittsburgh – which was highlighted in API’s annual State of American Energy report for its thriving small business community.
Energy development in the Marcellus Shale has restored the economy of Western Pennsylvania, creating good-paying jobs that helped residents weather the recession during the first decade of the 21st century.
Posted June 28, 2019
Here's some quantification for the broad, public good the natural gas industry is doing in Pennsylvania – nearly $252 million distributed to counties and municipalities in state impact fees paid by natural gas operators, the highest total since the fee was implemented in 2012.
Behind the numbers: county and municipal governments that host shale wells will receive $135 million, the Marcellus Legacy Fund – for statewide initiatives including greenways, trails and recreation, watershed restoration, flood control, abandoned mine drainage abatement and abandoned well plugging – will receive $90 million and $18 million will go to state agencies.
Posted February 5, 2019
Back in 2015, Pennsylvania Gov. Tom Wolf’s first year in office, we first likened his bid to hike taxes on natural gas production to killing the goose that lays golden eggs. That’s because over the years natural gas production has significantly benefited Pennsylvania – the nation’s No. 2 natural gas producer – in jobs, economic lift and impact fees paid by industry that have helped support public infrastructure, storm and water systems, public safety, housing and more, all over the commonwealth.
Negatively impacting a key Pennsylvania industry doesn’t make sense. Yet, in this new year, Wolf is back with a new tax scheme that could hamper natural gas production and its benefits – a proposal to borrow money to invest in infrastructure that would be paid back through a new natural gas production tax. Again, a tax on top of the impact fees industry already pays.
Posted June 28, 2018
When talking about the nuts-and-bolts of policy, it’s easy to lose sight of the real-world impacts of various regulatory choices. In Pennsylvania, where Gov. Tom Wolf continues to press for higher taxes on the commonwealth’s natural gas producers, the benefits of existing impact taxes on producers shouldn’t be overlooked.
Posted August 9, 2017
Total up industry’s economic contributions to Pennsylvania – helping to support its schools, first-responders, local infrastructure and jobs, lots of them – and it’s a pretty fair amount. But not fair enough for some. Last month a narrow majority in Pennsylvania’s state Senate voted for a $600 million tax increase that would hit natural gas producers and natural gas and electric users while also hiking taxes on communications services – all of which could significantly impact Pennsylvania consumers.
Posted July 28, 2017
The latest severance tax proposal in Pennsylvania, targeting natural gas production as well as consumer items and services, is a story of lawmakers risking harm to ongoing energy activity and economic growth – already providing significant benefits to people all across the commonwealth – instead of working to expand opportunity through pro-growth policies. Unfortunately, the tale being written by the state Senate could be about less natural gas production (and potentially less revenue to the commonwealth), less economic growth and fewer benefits to Pennsylvanians.
Posted September 30, 2016
Posted September 19, 2016
Sitting atop the prolific Marcellus and Utica shale plays, Pennsylvania is a natural gas production powerhouse – thanks to modern hydraulic fracturing and horizontal drilling. The U.S. Energy Information Administration (EIA) reports that the two plays provided 85 percent of U.S. shale gas production growth since the start of 2012, reflecting the blossoming production from shale and other tight-rock formations through safe fracking.