A new economic analysis examines the impact of the natural gas industry on Pennsylvaniaʻs economy, including its billions in contributions to the state’s gross domestic product.
The report, commissioned by the Marcellus Shale Coalition (MSC), said natural gas development is fundamental to the health of Pennsylvania’s economy. The industry supports more than 123,000 jobs in the state, boosts state tax revenues, and generates billions in economic benefits.
The analysis, conducted by FTI Consulting for MSC, said the industry supported more than $41 billion in state economic activity in 2022. That does not include another $6.3 billion in natural gas production royalties paid to private and government entities. Overall, the natural gas industry boosted the stateʻs gross domestic product (GDP) by nearly $25 billion. Further, it pays out an average annual wage of $97,000, which is 113 percent higher than the average median wage in the state.
“Energy is the lifeblood of Pennsylvania’s economy, and our sector works hard every day to safely deliver affordable, clean and reliable energy for our country and the world,” MSC President David Callahan said. “This new economic data, focused specifically on the natural gas sector within Pennsylvania’s borders, not only demonstrates the essential role of the natural gas industry but also the urgency to prioritize infrastructure development and permitting reform to maximize these job-creating benefits.”
The MSC study also found that the industry generated $3.2 billion in state and local tax revenues. About $279 million of that supported the Impact Fee that is distributed to communities in all 67 Pennsylvania counties, as well as various environmental and conservation programs. In addition, it contributed $2.6 billion in federal tax revenues.
“Pennsylvania is blessed with world-class energy resources as well as a talented and diverse workforce, especially our partners in the building trade unions who are vital to the sector’s continued growth. Our energy future is bright, and with the right policies in place, we will continue to resiliently lead from the front by achieving energy affordability and reliability, manufacturing, environmental protection, and emissions reduction, as well as national security goals that benefit all Pennsylvanians and Americans,” Callahan added.
The report was released during MSCʻs Shale Insight Conference, held Sept. 26-28 at the Bayfront Convention Center in Erie.