As the first quarter of 2023 draws to a close, the economy remains a top concern for many Americans. It has been difficult to ignore the impact of inflation on essentials and market results have reflected this uncertainty. While the current unemployment rate is at a nearly 50-year low and many economists have argued inflation is now slowing, there are also concerns that rate hikes will make borrowing more expensive, weakening consumer spending, constraining corporate profits and slowing job growth .
Fortunately, there is one engine of economic growth and job creation in the United States that is largely underutilized – the development of our energy infrastructure for national gas production.
Pennsylvania residents know firsthand the economic benefits of a thriving natural gas industry. It has been nearly two decades since the first well tested the prolific Marcellus Shale in Washington County. During that time, the industry has created and supported hundreds of thousands of direct and indirect jobs across the state. Local communities are thriving thanks to increased economic activity, and communities across the Commonwealth have benefited from more than $2.2 billion in impact fee revenue, which has been used by local leaders to develop community projects that improve public infrastructure and maintain green spaces. Pennsylvania is now a world leader in energy, second only to Texas in terms of natural gas production in the United States.
While this resource has created tremendous economic opportunity, due to the lack of available pipeline infrastructure, we have yet to see the full impact of this engine for job creation and growth. Although we host the world’s largest natural gas field, the Marcellus Shale, we still do not have the infrastructure capacity to efficiently bring this resource to market. Additionally, our country’s energy independence is hampered by litigation and regulations that make it difficult to meet demand and present challenges in getting natural gas to market.
As has been shown in Ukraine and across Europe, energy security is important. Not long ago, foreign tankers carrying natural gas were pictured in the port of Boston because New England was cut off from the abundant and inexpensive domestic natural gas produced in Pennsylvania. This is partly due to a lack of existing infrastructure and policies in other states that have spurned additional investment in new pipelines, the safest and most efficient way to transport natural gas. Pennsylvania has the resources to solve this problem, but the lack of pipeline infrastructure makes it difficult or impossible to serve American homes in the Northeast.
Closer to home, the overly onerous regulatory environment of our own Commonwealth has also been a significant hurdle in realizing our own true economic and energy potential. Simply put, these guidelines turn a promising solution into an impractical reality.
There have been encouraging signals from Harrisburg and the new Shapiro administration, and now is the time for our political and political leaders to support the approval of reforms to increase infrastructure development and natural gas production in Pennsylvania. As we like to say in Washington County, “the power to thrive is right under our feet,” but it’s no use staying there. Allowing reform that allows us to free up our American energy resources and bring them to markets safely and efficiently will spur job growth, improve Americans’ daily lives, and set the stage for a more prosperous future.
Jeff Kotula is President of the Washington County Chamber of Commerce.
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