Good News for Offshore Development, So Why Block Access?

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Today, the Department of Interior held a lease sale for the Central Gulf of Mexico. The sale garnered a great deal of enthusiasm from the industry, attracting 407 bids from 52 companies. The total bids for today’s sale exceeded $1.2 billion dollars—one of the highest sales since leasing began in 1983.

This huge amount of federal revenue begs the question: Why are legislators in Congress and the administration calling to raise taxes on the oil and natural gas industry when the industry is garnering a huge deal of revenue for the country? Repealing critical tax deductions would undoubtedly curtail this enthusiasm in the Gulf and onshore. It’s vital that Washington doesn’t mess with tax deductions and an investment plan that are clearly working.

The revenues are so great that states want in on more of the bounty. Today, Senators Mary Landrieu (D-LA) and Lisa Murkowski (R-AK) introduced legislation that enables states currently open for offshore production (Gulf states and Alaska) to keep more of the revenue generated by offshore energy development. The Fixing America’s Inequality with Revenues (FAIR) Act provides up to 37.5 percent of all revenues from offshore development to coastal states. Of this percentage, states would automatically receive 27.5 percent of these revenues, 25 percent of which would go to the coastal communities most impacted by offshore development. They’d also be eligible for additional 10 percent if they establish funds to support projects relating to clean energy or conservation.

 

Although the IPAA supports efforts to increase American offshore oil and natural gas production, we believe the real solution to increasing offshore production would be to increase access to areas in the Eastern Gulf of Mexico and the Atlantic.  Rather than limiting offshore exploration to a few areas across the nation, the federal government should allow the states along the eastern seaboard and elsewhere to begin the process of exploring for additional energy resources off their coasts. 

What independent producers – and states – really struggle with is access. We need to open up the eastern Gulf of Mexico – to explore for the resources that are undoubtedly lying beneath the waters there. When the federal government refuses to allow producers to explore for American energy, it not only hurts the industry, but it does the American people a disservice. More American energy means more American jobs, more revenue for depleting government budgets, and more growth for our economy.

The oil and natural gas industry supports efforts to remove these federal roadblocks to American development. So do many legislators in Congress. Today, more than 40 legislators sent a letter to President Obama, urging his administration to complete the long-delayed Environmental Impact Statement (EIS) for the conduct of a safe, environmentally protective seismic assessment of the oil and natural gas resources offshore the Atlantic outer continental shelf (OCS). As the letter expressed, it’s been more than two generations since the last seismic testing was done on the eastern seaboard. Clearly, the technology has advanced greatly since then. We didn’t even have 3-D seismic testing at that point. The letter expressed that this testing “represents a critical step toward making science-based decisions with regard to any future commercial or recreational activities in the federal waters off our Atlantic coastline that could provide the nation much needed energy, economic, and environmental benefits.”

 It’s time to let states that have been barred from offshore development explore this opportunity for jobs, economic growth, and energy security. It’s time to let industry get excited about developing the eastern seaboard and the Western Gulf of Mexico. The economic potential of this energy opportunity is so large that the industry, states, federal government, and the American people can all share in the bounty.

New Year Brings Opportunities and Obstacles for Industry

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IPAA President & CEO Barry Russell’s reflects on the opportunities and challenges of the year ahead:

“As 2013 begins, IPAA is optimistic that the great benefits of natural gas and oil development are gaining traction with leaders in Washington. Despite political gridlock that Washington seems to be characterized by these days, leaders on both sides of the aisle are recognizing that energy development environmental protection can and do work together to the benefit of the American people. IPAA has had several productive meetings with Congressional leadership and the White House on how development of oil and natural gas resources, particularly from shale, is boosting jobs, government revenue, and economic growth all across the nation. Below are some of the issues that IPAA will be working with Congress and the administration on.

TAXES.         

“Although major bills will likely be stymied in Congress, IPAA’s major area of legislative concern is taxes. Although comprehensive tax reform may not be undertaken immediately, tax policy will inevitably be in the spotlight. The call to end industry’s provisions of intangible drilling costs and percentage depletion and the passive loss exclusion will inevitably resurface. This is a dangerous political rallying cry that ignores the enormous risk that independent producers face in exploring for energy and threatens the continued investment in America’s vibrant and growing energy sector. IPAA continues to educate lawmakers and their staff on why these provisions are in the tax code. We will continue to warn against the unintended consequences that eliminating these provisions would have on future oil and natural gas production.

REGULATION.

“Due to the standstill in Congress, environmental issues will be addressed by regulations.  In fact, the legislative gridlock could embolden the Obama administration’s agencies to take major steps to federalize oil and natural gas regulation, with particular focus on hydraulic fracturing. Traditionally, the states have had jurisdiction of energy regulation and, time and time again, have proved themselves more than capable of doing so. From the EPA’s proposed national source performance standards to BLM’s drilling regulations to EPA’s regulatory guidance and studies on hydraulic fracturing rules, IPAA will be keeping a close watch on the administration’s actions in regard to oil and natural gas development.

ESA.

“In particular, the Endangered Species Act, which the anti-development activists use to try to shut down development of all kinds, is a top priority for IPAA in 2013. Specifically, IPAA will be pushing back against the listing of the Lesser Prairie Chicken. A listing could threaten oil and natural gas production in resource-rich states, states which have already made special conservation coalitions to protect this species.”

 

Shale Bringing Joyful Tidings

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This tool in oil and natural gas extraction, known as “Christmas tree” for its resemblance, comes with a major present: New jobs

 

It’s the holiday season which means a lot of things. Holiday parties, holiday shopping, holiday food. All of this involves a great deal of money, which is why this time of year can be just as stressful as it is festive. The added financial pressure of the holidays is especially rough for those folks who are out of work – struggling to put food on the table and give their kids the best Christmas possible.

The good news is that many are finding well-paying work that enables them to provide for their family in the oil and natural gas industry. Because of the shale boom that is sweeping the United States, jobs are being created from Pennsylvania to California, from Louisiana up to Michigan.

Yesterday, the U.S. Chamber of Commerce’s Institute for 21st Century Energy released a new study, done by IHS Cera, that detailed the economic benefits of shale development by state. And these benefits are enormous.

You wouldn’t think that snowy Michigan would be counted among the major energy producing states. But shale development, which hinges on the critical hydraulic fracturing process, accounted for 38,000 direct or spinoff jobs in Michigan in 2012 and is set to create 79,000 jobs and contribute more than $8 billion to the economy.

In Ohio, whose economy has struggled for decades with the departure of manufacturing companies, is experiencing oil and natural gas development due to the Utica shale play. The abundance of affordable natural gas is causing a huge comeback in manufacturing. Towns like Youngstown which has been stagnant for decades is breathing new life again. About 39,000 jobs in Ohio are linked to oil and natural gas production. This good news is just the beginning — that number is projected to triple by the end of the decade!

Now, Texas has had a long and rich history in energy development. In popular culture, cowboy hats and boots pretty much go hand in hand with the idea of oil companies. But the shale plays are energizing the state in a way that is unprecedented. The Barnett and Haynesville shale plays are a flurry of industry activity. Jobs are being created by the thousands as people rush to take advantage of golden opportunities.

But nothing beats the massive Eagle Ford shale that spans the southwestern region of Texas. This week’s Declaration of Independents did a major profile of the Eagle Ford play, which could now be more prolific than the outstanding Bakken in North Dakota that is revolutionizing that snowy state. It detailed the history of the play, the technologies being utilized there, and the targeting trends of natural gas and, increasingly, oil.

IPAA economists also highlighted the economic contributions of the Eagle Ford in the analysis, whose job creation matches those of entire states.

“Direct employment has been boosted by increased demand for workers to drill and complete wells, to provide the geophysical and engineering analysis to guide projects, and to build pipelines and processing facilities. This in turn, has increased diverse jobs for workers who provide housing, transportation, and consumer goods and services of all kinds for the larger regional workforce. This also means a workforce with rising wages with more money to re-inject into the local economy. According to analysis by the Dallas Federal Reserve Bank, the average weekly pay in the entire region rose 14.6 percent annually from the first quarter of 2010 to the third quarter of 2011, more than double the 6.3 percent rate for the U.S. as a whole. According to a study by the Institute for Economic Development at the University of Texas at San Antonio (UTSA), Eagle Ford activity supported 38,000 jobs in 2011. That figure was forecast to grow to over 82,000 jobs by 2021. In that year, it is estimated that the boost in economic activity will add more than $1.5 billion to state revenues and $888 million to local government revenues.”

And as the IHS study detailed, Texas accounts for almost half the nearly 1.3 million industry jobs associated with shale oil and natural gas production. Some 576,000 Texans were in jobs connected to shale oil and gas in 2012. By the end of the decade, the analysis projected that 930,000 people in Texas will have oil and natural gas industry jobs. Seriously, everything is bigger in Texas.

It’s not an exaggeration to say that the oil and natural gas industry, because of the amazing well-paying jobs it is creating, is giving hope to hundreds of thousands of people across the nation. These jobs give dignity to those employed, as the jobs empower them to provide for their families and give them a kind of security that is especially felt around the holiday season.

Click here to read the full Declaration of Independents article: The Eagle Ford – Texas Shale Star

Click here to read the Chamber’s IHS Cera study: The Unconventional Oil and Gas Revolution and the U.S. Economy

Thanksgiving for American Energy Renaissance

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With Thanksgiving tomorrow, it’s important to reflect upon – and be thankful for – the incredible American oil and natural gas renaissance.

The cornucopia is a symbol of abundance.

1. The U.S. is energy abundant.

The United States is one of the most resource-rich countries in the world. This is an incredible blessing and we are lucky to be accustomed to the lifestyle that energy abundance gives us. Overall, we have relatively low-cost energy for consumers in this country. Even gasoline, which does become a burden to families paying the bills, is much lower than it is in other countries. Just look at Europe. The shale revolution of recent years have further increased our access to our rich resources, with the advanced technologies of hydraulic fracturing and horizontal drilling unlocking vast reserves of oil and natural gas. As Ken Hersh, CEO of NGP Energy Capital Management said, the shale oil and gas boom will be “the redefining global phenomenon, from a finite world to a surplus world.” Each year, production levels in North Dakota, Ohio, and Pennsylvania shale plays are topping themselves and setting new records.

2. Our industry is creating jobs and strengthening the economy.

In a struggling economy, the oil and natural gas sector is providing much-needed, well-paying jobs to people across the United States. These are well-paying jobs. On average a worker in the oil and gas industry makes more than $35 per hour. The average wages in the general economy are about $23 per hour. Petroleum engineers make over $100,000 on average starting out. Oil and natural gas development also supplies amazing blue-collar jobs. Roughnecks, roustabouts, and land men do not need advanced education. These jobs pulls people out of poverty, gives hope to families, and strengthen the middle class. It’s also bringing manufacturing back to America’s shores. America’s oil and natural gas sector is also bringing enormous amounts of revenue into state, local, and federal treasuries.

3. America’s energy security is strengthened every day.

The United States is becoming the global leader in energy production. The Paris-based International Energy Agency reported last week that the U.S. will be the number one producer of oil by 2020 and the number one producer of natural gas by 2016. This would put us ahead of Saudi Arabia as the world’s top producer of oil. IHS Vice Chairman Dan Yergin, renowned energy historian, recently said “The growth of unconventional oil and gas production is creating a new energy reality for the United States.”  Our increased self-sufficiency will insulate us from shocks abroad and protect us from relying on foreign countries for our oil. After all, oil imports are down from 57% in 2008 to just 45% today. Within a decade, the IEA forecasts that U.S. oil imports will drop by more than half to just four million barrels a day, from 10 million barrels a day currently.

America’s energy boom, made possible by the oil and natural gas industry and the great men and women who are employed by our companies, is surely something to be thankful for.  

Cast Your Vote Where the Energy Is

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It’s game time.

Tomorrow is the day to put our money where our mouth is and VOTE.

If you are one of those dwindling batch of undecided voters, (“We hear a lot about our dependence on foreign oil, but just what is oil?”) here is a last-ditch effort to find out about the candidates’ policies on energy development:

Take a look at President Obama’s energy plan and Governor Romney’s energy plan. Here is IPAA’s reaction to Romney’s plan.

Read IPAA President and CEO Barry Russell’s op-ed, entitled “Obama’s Energy Strategy of Contradiction” featured in Roll Call this past April.

But under the public’s watchful eye, the president is continually contradicting himself inside the Beltway and on the campaign trail. Obama calls to expedite infrastructure projects, but in the wake of rejecting the Keystone XL pipeline. Obama claims increased oil and natural gas production on his watch, but then follows up with accusations that oil companies are profiting at the expense of the American people. Obama repeatedly calls for an “all of the above” energy strategy, but then singles out the oil and natural gas industry for new regulations and targeted tax attacks.

Something doesn’t add up. To discover Obama’s real feelings and policies toward American-made energy, we must look to areas that the administration actually has jurisdiction over: public lands, federal agencies and his own calls for legislative action…

…The public may be taking note of Obama’s energy policy contradictions. The 2012 election may rest upon the question: Can Obama have his energy cake and eat it, too?

And from National Journal Energy Experts blog:

Over the past three years, the Obama administration’s actions simply have not mirrored President Obama’s pro- oil and natural gas messages in last week’s State of the Union last week. In fact, the administration has done much to hamper development of America’s vast oil and natural gas reserves…

…Last fall, IPAA battled for the independent producers’ very livelihoods when Congress, at the behest of President Obama, tried to repeal these provisions. Thankfully, these elimination efforts fell flat and the business deductions that encourage crucial industry investment survived. However, there will certainly be more battles on taxes to come in 2012 as President Obama continues to misrepresent the productivity of the American oil and natural gas industry.

The presidential race is not the only important race this cycle. The House and Senate are up for grabs and the makeup of Congress will determine the laws (and level of gridlock) that will affect American energy for years to come.

IPAA endorsed more than 170 Members and candidates based on their pro-business agenda and their support for America’s independent oil and natural gas producers. Each Wildcatters selection was approved by the IPAA Wildcatters Fund Board member from that region and received final approval from the Congressional Candidate Review Committee (CCRC). Please visit our website to see the full list of Wildcatters Picks.

Not sure where to vote? Visit IPAA’s website and use the EZ Vote tool to find your polling location, get contact information for your state election offices.

 

Once “Peak,” Now Plentiful

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For years, many people predicted the “end of oil,” a doomsday scenario that hypothesized that the world was running out of oil, that we exhausted the energy underneath our feet. This is known as “Peak Oil Theory” and it was dubbed as almost undisputable in many circles. As the WSJ reported, this last scare was the fifth time in modern history that there has been widespread fear about the world running out of oil.

In the past few years, however, America’s independent producers, known as “wildcatters” reversed what many thought was the industry’s irreversible march into obscurity. Independent producers and service companies together made breakthrough advancements in technology which enabled them to access energy that people knew about, but thought was forever technologically and economically out of reach. Combining the technologies of horizontal drilling and hydraulic fracturing, independent producers were able to tap this energy that was impenetrable for decades – oil and natural gas reserves trapped in shale. Now, people’s fears have been assuaged. In fact, the truth lies in the opposite of peak oil theory. As reknowned energy expert Daniel Yergin coined it, “There Will Be Oil.”

The oil and natural gas industry has truly been resurrected. Majors followed the lead of independents and started coming home to the United States to develop the abundant new source of reserves they found in their own backyard. Plays that were once “played out” became hot spots for development, bringing the jobs and economic growth with them. Thirty years ago, people were leaving West Texas in droves because they thought the oil boom there was finished. Now, it’s booming again. Median family incomes in Permian Basin have increased by more than one-third there’s even a labor shortage. Just at the technology we have today, the Permian Basin will still be developed by the industry in 50 years!

Also, new plays were being discovered. Take the Bakken in North Dakota. It is estimated to hold 4.3 billion barrels of oil – the largest oil find in U.S. history. Towns are booming– and the state now has the lowest unemployment rate in the country. It truly is reminiscent of the gold rush of yesteryear. Not only is this great growth not diminishing, it’s getting bigger.

The jobs and economic benefits that have resulted from this energy renaissance are absolutely amazing. The oil and natural gas sector is truly a bright spot in our nation’s struggling economy. To see the way the industry is hiring like crazy, you’d think we were in a time of blissful economic growth, not a limping recession. And the benefits extend well beyond the industry. The manufacturing sector, petrochemical industry, land owners, restaurants, hotels….you name it. They are all benefiting tremendously from increased demand for their products and abundant energy that make their operations more affordable in the United States.

On the energy security side, there are amazing effects. In fact, the U.S. is slated to be the top oil producer in the world by 2017, and has clearly dramatic implications for our leadership roles on the global energy stage. This week’s Declaration of Independents outlined the dramatic implications for America’s leadership role on the global energy stage. The “real prospect to become less sensitive to external supply volatility” will undoubtedly ”create new abilities for the U.S. to deal with less predictable geopolitical elements ranging from tensions in the Middle East to resource nationalism in Latin America.”

Even the taboo phrase politics: “energy independence” is passing the lips of some of the most formerly skeptical energy experts. With the right policies, North American energy independence at least is within our generation’s grasp. That’s not a bad place for oil — or the United States — to be.

Look to Oil & Natural Gas Industry for Interior’s Contributions to Economy

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Yesterday, the Obama administration released a report on the Department of Interior’s contributions to the economy in 2011. According to the press release, the activities of Interior added $385 billion to the U.S. economy and supported more than 2 million jobs in 2011.

Those are indeed impressive numbers. But it’s a bold move to claim that the activities of Interior contributed these jobs and dollars. After all, what is the source of these jobs?

Energy. The report does acknowledge that “energy development and mining on Interior-managed lands and offshore areas supported about 1.5 million jobs and $275 billion in economic activity.” However – it’s not even just energy development as a whole. An overwhelming amount of those economic benefits stems from the work of America’s oil and natural gas companies.

Where is this federal lands job creation happening? Interior points to Texas, Wyoming, Louisiana, New Mexico, California, and Florida. No kidding! After all, almost all of these are HUGE oil and natural gas producing states. According to IPAA’s Oil & Gas Producing Industry in Your State (OPI), Texas, Wyoming, Louisiana, New Mexico, and California (all except Florida) rank in the top 10 producing states for either oil production, natural gas production – or both. So it’s no wonder that these states have sourced “most of these jobs.”

Western Energy Alliance, which represents Western independent oil and natural gas companies, crunched the numbers. They found that 62% of the total economic value and 56% of the total jobs that the Department of the Interior claims in its report actually comes from America’s oil and natural gas industry. That’s $238.5 billion in GDP and 1.3 million American jobs!

It would be one thing if the Obama administration was touting these jobs while truly creating a national energy policy that encouraged American energy production. But between Interior’s five year offshore plan which restricted offshore access and Interior’s draft rules for a blanket, one-size-fits-all standard for hydraulic fracturing and well construction on federal lands, it seems that this administration falls far short of promoting oil and natural gas development. Instead, Interior is creating an uncertain, burdensome business climate for the very industry whose jobs the department is claiming credit for.

These very jobs and economic growth are exactly what’s at stake in the energy policy battles of 2012. That’s why the oil and natural gas industry has pushed back against Interior’s new regulations. They threaten the future of energy development on federal lands – and the job creation and economic growth that come with it.

Energy Heats Up the 2012 G8 Summit

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At the 2012 Group of Eight (G8) Summit held this week in Camp David, energy held a prominent place on the world leaders’ agenda.

IPAA educated on the role of shale as a “global game changer” in G8: Camp David 2012, the official publication of the G8 Research Group that was distributed to heads of state, CEOs, financial institutions, and government representatives at the summit. IPAA highlighted how natural gas is a low-cost, abundant fuel that is pivotal for countries’ energy portfolios in the decades ahead. IPAA also demonstrated how the industry’s safe, game-changing completion process of hydraulic fracturing is playing an unparalleled role in creating jobs, enhancing energy security, and boosting economies of nations around the world.

“Despite speculation and propaganda, hydraulic fracturing is a proven-safe technology. In fact, out of the 1.2 million wells that have been fractured in the U.S., not a single case of groundwater contamination has ever been proven as a result of hydraulic fracturing. A study from the Energy Institute at the University of Texas at Austin reaffirmed this fact in February 2012. The study found “no evidence” of hydraulic fracturing ever leading to groundwater contamination.

“Like any other industrial process, industry is aware of the need for continual advancement to ensure the safety of the environment in communities where development is taking place.  From preliminary testing of the area via seismic data to restoration of the completed well site, industry places safety and the environment as a top priority in development.  Industry has stepped up to voluntary disclose chemicals used in over 11,410 wells across the United States. Safety, efficiency, water conservation, wellbore integrity, and environmental protection are key chapters in development.”

The feature also highlighted shale plays around the world – from European Union to China to South America. The proven benefits of development to the United States’ economy and job creation were also demonstrated.

IPAA concluded by discussing how natural gas from shale is an area which leaders from the different countries can and should work together to promote.

“The development of natural gas from shale presents an opportunity for global leaders to work together and provide our growing world with the energy it needs to expand, advance, and progress. From the Lower Saxony in Germany, to the Eagle Ford in Texas, across to the Cooper Basin in Australia, shale plays around the globe are redefining our world’s energy potential and providing countless economic benefits for local, federal, and global economies.”

This was a great opportunity for IPAA to advocate the amazing benefits of developing oil and natural gas from shale to an international audience. Please click here to see the full feature, which was circulated to more than 12,000 international policymakers. At the summit, the leaders released a 40-point declaration, in which the G8 leaders voiced their commitment to sharing best practices for energy production, particularly related to the technologies of hydraulic fracturing and deep water drilling.

Another energy issue brought up did not have a consensus as common-sense – tapping the strategic petroleum reserve. Last year, amid rising gasoline prices, President Obama used the Libyan crisis to justify tapping the Strategic Petroleum Reserve. IPAA responded that the administration’s action was “not a solution, yet another decision that will only prolong the nation’s vulnerability to swings in oil prices. Drilling for more oil at home will not only increase American oil supply, but will also create jobs and increase government revenues through taxes and royalties. Releasing oil from our strategic reserves cannot accomplish these other important goals.”

Now, with President Obama’s likely support, that option is on the table once again – this time in an election year for the president. In response to the volatility of world oil markets, G8 leaders agreed to “stand ready to call upon the International Energy Agency” to release oil from the Strategic Petroleum Reserve. Again, IPAA has long argued that tapping the Strategic Petroleum Reserve is a political play rather than a practical response to world supply disruptions. Instead of this knee-jerk reaction, the U.S. should spearhead a national energy policy that encourages production of American oil reserves by increasing access to federal lands and eliminating regulations that serve only as unnecessary red-tape.

For more information on energy at the G8 summit, read the White House’s fact sheet on G-8 Action on Energy and Climate Change.

Obama’s Keystone Pipeline Rejection Reveals Anti-Energy Cornerstone

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Yesterday, the Obama administration announced its rejection of TransCanada’s proposed Keystone XL pipeline that would have traveled from the Canadian oil sands to the U.S. refineries in the Gulf of Mexico.

In the State Department press release, the administration blames Congress for forcing him to make a decision, claiming the administration simply does “not have sufficient time to obtain the information necessary to assess whether the project, in its current state, is in the national interest.”

Therefore, the administration deemed the construction of Keystone XL “not to serve the national interest.” Really? The construction of this pipeline was set to create 20,000 jobs for Americans. It would have secured a source of much-needed oil that may not be domestic, but at least sourced from Canada, our neighbor and great ally. The completion of this pipeline also would have helped America’s independent producers, who face a backlog in the transport of their oil from Cushing, Oklahoma.

Additionally, the press release even indicates that the president has had four years to review the Keystone permit: “since 2008…been conducting a transparent, thorough, and rigorous review.” That’s when President Obama was elected! Four years is still not enough time?

This flat-out rejection of American jobs, energy security, and economic development is sure confirmation of the administration’s animosity toward the oil and natural gas industry and demonstrates the chokehold that the President’s environmental base has over the administration. The labor unions, a huge base of the Democratic Party, are up in arms over this rejection of jobs. Canadian Prime Minister Harper expressed his “profound disappointment” of President Obama’s decision.

Once again, the administration puts pressure from its environmental base over the needs of the American people. In a struggling economy, the fact that the President puts concerns of radical, anti-development activists over blue collar Americans who would have benefited from the well-paying Keystone XL pipeline jobs is truly shameful.

Overturning U.S. Economic Doldrums

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The major media outlets are all reporting on the economic good news of 2011, the real stimulus sweeping the nation:  Despite the recession, the oil and natural gas industry is providing jobs, tax revenue, and economic growth in communities across the United States.

“Sure enough, money is flowing by the barrelful into Mountrail County, transforming a tiny community once proudly situated in the middle of nowhere into an unexpected oasis of prosperity at the heart of the nation’s biggest oil play…With the unemployment rate at only 1.3 percent, local sons and daughters are no longer leaving to find work. (New York Times)

“As the rest of the nation watched incomes drop or stagnate, in Mountrail County median income rose more than 50 percent in the last decade, the fifth-highest gain in the nation. Residents earned on average an additional $20,000, adjusted for inflation, according to an analysis of census data by Andrew A. Beveridge, a demographer at Queens College in New York.” (New York Times)

“A Pittsburgh-area school district gets $628,000 for lease with oil and gas drilling company…Phillips Exploration’s lease with the South Butler School District also carries an 18 percent royalty from any gas that is produced and sold from the acreage.” (Associated Press)

“Chemung and other counties in the state’s Southern Tier where shale gas is assumed to be plentiful can expect a surge in retail sales and tax revenue from those workers once drilling begins…Last year, Chemung led all New York counties in the growth of sales tax and hotel tax revenue, as well as in the expansion of its tax base, avoiding the property tax increases and economic doldrums faced by local governments elsewhere in the state.” (New York Times)

“In northeastern Ohio, oil companies from across the U.S. are setting up shop, developing wells and putting people to work, trying to get the oil out of the sedimentary rock.” (Fox News)

“People who have opportunities in many other places in the country or elsewhere in the world have elected to come to Ohio and seek opportunity here, that tells me that people who are making very rational decisions spending shareholder money are coming to the conclusion that this is worth chasing.” (Fox News)

“The boom in low-cost natural gas obtained from shale is driving investment in plants that use gas for fuel or as a raw material, setting off a race by states to attract such factories and the jobs they create. Shale-gas production is spurring construction of plants that make chemicals, plastics, fertilizer, steel and other products. A report issued earlier this month by PricewaterhouseCoopers LLC estimated that such investments could create a million U.S. manufacturing jobs over the next 15 years.” (Wall Street Journal)