Marcellus Shale and Natural Gas

Economic and Business Impacts

Uncover valuable information on the economic impacts of Marcellus Shale and natural gas production. Learn in-detail about examining shale gas drilling activities and trends, moving natural gas, and understand the impact on locally owned and downtown businesses.

Economic Impacts of Natural Gas Development

The Marcellus Shale could contain over 500 trillion cubic feet of natural gas. About 10% of this gas could be recoverable, making the potential economic impacts of Marcellus gas development extensive. What’s more, studies show that natural gas will remain a significant contributor to the energy portfolio and economic growth in the United States. It comes as no surprise that many landowners, gas companies, and businesses are becoming increasingly interested in exploring the potential profits.

Marcellus Shale-related natural gas production can lead to various economically significant outcomes. In fact, the influx of income associated with gas extraction is expected to provide new job opportunities, boost population growth, and increase gross state product and real disposable personal income. However, it is sensible to know that due to Pennsylvania’s tax law, direct increases in tax revenue may not be realized by local jurisdictions, including school districts and municipalities.

To prepare and keep up with the boom of natural gas development in the Marcellus Shale, finding relevant, unbiased resources is essential. Penn State Extension strives to bring scientific, fact-based information to landowners and communities to assist them in solving problems and making sound decisions.

Penn State Extension’s resources address emerging issues related to the Marcellus gas exploration process, including workforce development, infrastructure, tax revenue, water quality, and overall quality of life for PA citizens.

Educational workshops are available on small scale liquid natural gas operations, including commercial impacts and opportunities, as well as on approaches to managing shale energy fluids. Information is also provided on the factors impacting energy markets and the possibilities of natural gas power generation to create electricity for local use.

Marcellus Shale Business Impact

Gas development in the Marcellus shale region certainly has the ability to noticeably impact local businesses. While some business owners are seeing increases in sales and expansion, others – whose employees have skills similar to those used in natural gas production – may experience worker turnover, increased payroll costs, and difficulty finding employees.

The rise of Marcellus Shale development can affect downtown business communities, as well. In Pennsylvania, downtown business districts are a vital part of the local economy and identity. In regions with active drilling, these communities can experience notable impacts on sales, retail space, and employee retention. Factors, such as the flow of lease and royalty payments to mineral rights owners, can further contribute to an increased amount of money circulating in these local economies.

Overall, Penn State studies show that many Marcellus-related businesses in Pennsylvania plan to expand, suggesting that a significant number of business owners see natural gas development as an opportunity. Learn more about this and other natural gas economic impacts with Penn State Extension.

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  1. Natural Gas in the Appalachian Basin
    Webinars

    Free

    Natural Gas in the Appalachian Basin
    When Watch Now
    Length 1 hour
    Recorded Dec 21, 2023
    Event Format On-Demand | Recorded
    Explore the Appalachian Basin's energy evolution with Penn State Extension experts. Uncover growth, challenges, and future trends for landowners and those considering land leasing.