Keystone Energy Forum

Marcellus Shale

West Virginia is sitting on a buried treasure called the Marcellus Shale formation.  This resource holds, at its core, more than 489 trillion cubic feet of clean-burning natural gas.

If fully developed, the Marcellus Shale could become the second largest natural gas field in the world only behind fields in Qatar and Iran. 

Access to the natural gas in the Marcellus Shale formation would boost West Virginia’s economy and improve America’s energy security by providing access to a critical domestic energy source. 

BENEFITS OF THE MARCELLUS SHALE

The Marcellus Shale is already having a positive impact on West Virginia’s economy.  According to a West Virginia University study, the oil and natural gas industry already supports 35,000 jobs in West Virginia, and over 7,000 new jobs can be created through Marcellus Shale development.

As development continues, so do the benefits for the region and across the nation:

• Development could mean $24 billion in total economic value to the region, which would positively impact all sectors of the economy including the service, construction, manufacturing, health care, and education industries.
• According to Mark Muchow, WV Deputy Secretary of Revenue, state severance taxes could rise from $50 million in 2010 to $118 million by 2016 - an annual growth rate of 17.6 percent. 
• Increased energy security for America by development of domestic energy resources to meet America’s growing energy demand.

Neighboring Pennsylvania is already realizing the potential of the Marcellus Shale.  A new study from Penn State University revealed that in 2010, the Marcellus Shale development generated  $11.2 billion in value to the state’s economy, contributed $1.1 billion in state and local tax revenues, and supported nearly 140,000 jobs.

These benefits can be achieved if West Virginians can continue to access resources in the Marcellus Shale Formation, and without the penalties of high energy taxes and other regulations that would stymie development. 

• The Economic Impact of the Natural Gas Industry and the Marcellus Shale Development in West Virginia
• The Economic Impacts of the Marcellus Shale: Implications for New York, Pennsylvania, and West Virginia
• West Virginia Department of Environmental Protection
• Review of Emerging Resources: U.S. Shale Gas and Shale Oil Plays (DOE Energy Information Administration)
• PennState Public Broadcasting "Explore Shale"
• Shale Gas and U.S. National Security (U.S. DOE, The Baker Institute)
• The Pennsylvania Marcellus Natural Gas Industry: Status, Economic Impacts and Future Potential