The state of the natural gas industry in PA

[vc_row animation=””][vc_column width=”1/1″][vc_column_text]The following is a guest post by Erica Clayton Wright, Vice President of Communications and Membership with the Marcellus Shale Coalition (MSC). She provides a recap of a recent state of the industry call hosted by the three major industry trade groups in Pennsylvania.
[/vc_column_text][/vc_column][/vc_row][vc_row animation=””][vc_column width=”1/1″][vc_column_text]You can follow the MSC on Facebook, LinkedIn and Twitter at @MarcellusGas.
[/vc_column_text][/vc_column][/vc_row][vc_row animation=””][vc_column width=”1/1″][vc_column_text]—–
[/vc_column_text][/vc_column][/vc_row][vc_row animation=””][vc_column width=”1/2″]“With the ongoing energy market slowdown, there couldn’t be a worse time for even higher energy taxes,Dave Spigelmyer, president of the Marcellus Shale Coalition told reporters during a joint call held with Pennsylvania’s natural gas industry trade associations following Governor Wolf’s budget address last week. In fact, Spigelmyer said “we have thousands and thousands of Pennsylvania supply chain companies that have had to really tighten their belt as a result of the lack of investments,” Spigelmyer said.
[/vc_column][vc_column width=”1/2″][vc_single_image css_animation=”” image=”8499″ border_color=”” img_link_large=”” link=”https://wellsaidcabot.com/wp-content/uploads/2016/02/ECW-Head-Shot.jpg” img_link_target=”_self” img_size=”medium”][/vc_column][/vc_row][vc_row animation=””][vc_column width=”1/1″][vc_column_text]As part of the 2016-2017 budget proposal, Wolf wants to enact a 6.5% gas severance tax. He proposed a 5% rate last year as part of the 2015-2016 state budget and later lowered it before that proposal failed in the state House of Representatives.  It is also important to note states that rely on a severance tax for revenue are experiencing budget revenue shortfalls up to 50 percent and are reevaluating their tax structures according to the Energy Information Administration (EIA) and Politico.
[/vc_column_text][/vc_column][/vc_row][vc_row animation=””][vc_column width=”1/1″][vc_column_text]David Spigelmyer, president of the MSC, noted on the call “Everyone knows the numbers that have been put out for this are unachievable. I believe we’re having a debate over doing a severance tax for the sake of doing a severance tax.  Why in the world are we even talking about it? It seems so silly. We have an approach that works and has worked since 2012. Altering the debate to do a tax for the sake of doing a tax does nothing but send more chilling indecision upon this industry in the Commonwealth.”
[/vc_column_text][/vc_column][/vc_row][vc_row animation=””][vc_column width=”1/1″][vc_column_text]Governor Wolf remains fixated on taxing the natural gas industry despite the facts:

  • Prices for gas in Pennsylvania are already well below the U.S. average
  • Rig count has dropped to its lowest point since the industry started developing the Marcellus Shale
  • Workforce reductions and spending cuts have curbed development in the state

Click on the two images below for information on the 2015-2016 layoffs and office closures.
[/vc_column_text][/vc_column][/vc_row][vc_row animation=””][vc_column width=”1/1″][vc_gallery type=”image_grid” interval=”5″ images=”8500,8501″ custom_links_target=”_self” img_size=”thumbnail”][/vc_column][/vc_row][vc_row animation=””][vc_column width=”1/1″][vc_column_text]The American Petroleum Institute (API), Marcellus Shale Coalition (MSC) and the Pennsylvania Independent Oil & Gas Association (PIOGA) all agree that Wolf’s refusal to leave higher energy taxes off the table would damage the state economy, its economic recovery and competitive edge with other producing states.
[/vc_column_text][/vc_column][/vc_row][vc_row animation=””][vc_column width=”1/1″][vc_column_text]These difficult market conditions cannot be ignored and underscore the need for all stakeholders — industry, lawmakers and regulators — to work together to ensure that our commonwealth’s business climate supports continued investment and job growth, especially from a tax and regulatory perspective.
[/vc_column_text][/vc_column][/vc_row][vc_row animation=””][vc_column width=”1/1″][vc_column_text]Here’s what they’re saying:

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Brittany Ramos

Brittany was born and raised in Pittsburgh, Pennsylvania and attended Pennsylvania State University where she earned degrees in Public Relations and Psychology. She recently earned her Masters in Sociology from Sam Houston State University. Brittany works in the External Affairs for Cabot where she manages communications and outreach projects to community members, elected officials, media and online supporters.