The Marcellus Shale Caucus: The Potential Of Natural Gas Development
Thank you for leading this Special Order on natural gas and its benefits. And thanks for your leadership on the Marcellus Shale Caucus. With natural gas, everybody wins. I am very proud to be a member of the Marcellus Shale Natural Gas…
Thank you for leading this Special Order on natural gas and its benefits. And thanks for your leadership on the Marcellus Shale Caucus. With natural gas, everybody wins. I am very proud to be a member of the Marcellus Shale Natural Gas Caucus. And I appreciate Mr. Reed, my good friend from just north of me in New York, acknowledging that good stewardship and good science is important. And we have both when it comes to natural gas. This is not 50, 60 years ago when we were extracting coal. This is 2012, where we have and we benefit from great science, and we know that we have a responsibility to be good stewards of the environment. I appreciate that acknowledgment.
I represent Pennsylvania's Fifth Congressional District. There are 17 counties that I serve, and that's 22 percent of the land mass of Pennsylvania. Mr. Speaker, 15 of my 17 counties have Marcellus shale, and I give thanks for many blessings that God has provided me in my life, and I thank God for the blessings of this natural gas at this time for our country.
I also benefit from having an institution like Pennsylvania State University, Penn State, in my district, and specifically the ag extension part of that land grant university that has experts that are out in the field helping everyday citizens with decisions about leases, leasing their land, and helping them with issues related to making sure that it is done in a way that represents good stewardship by the companies.
And here is the part I am most excited about: They are also helping them with finding the right kind of counsel for wealth management. That's the kind of problem we like to see our citizens have, a need for wealth management, because there were a lot of farmers who were going out of business. But today, they have a new John Deere tractor sitting there, and largely that is thanks to Marcellus shale. So it's going to be good for agriculture, which is good for all of America in terms of food.
Let me talk about some of the benefits because that's what we're here to focus on. And I want to start with a big one, and that's energy security. Marcellus shale is taking that large valve that controls us, all that oil that we buy from the Middle East, and we're going to be able to shut that thing off because of energy security, moving towards energy independence that natural gas is going to allow this country to have. That's something, whether you're in an area that's blessed with natural gas or not, every citizen in this country should hope and pray and give thanks for the fact that we will move ourselves in the direction of being energy secure, and that natural gas is going to contribute to that significantly.
I want to put that out there. It is the first benefit that absolutely every American, I don't care where they live in this country, is benefiting from natural gas.
Secondly, it really is jobs. I know that is localized to where the jobs occur. I happen to live in an area that has benefited significantly. I represent a very rural part of Pennsylvania, and we've had our difficult times. We have lost industries. But where we have natural gas, we are growing jobs.
Let me just give a couple of examples. In Tioga County there is a manufacturer. Actually, it's an international company. And the international company, the parent company, is looking to expand a plant. Guess where they're looking to? They're looking to Pennsylvania. And they're looking to Tioga County. And a big part of that is manufacturing, a key feedstock ingredient, whether used for heating, processing, or an ingredient, is natural gas. And the price of natural gas being delivered domestically, how it is available, so plentiful and so cheap right now, they want to build and expand the plant right there in Tioga County. That's very exciting. That's jobs.
As I wander around Tioga County, I see help wanted signs everywhere. And it's not just in traditional businesses that you would think of when you think of natural gas. It's all businesses, because the economy is good. The income is up. The unemployment is way below both State and national averages in the counties where the natural gas production has really taken off. And it's moving to other counties.
In terms of jobs, there's an entrepreneur in Elk County who I serve. This is a gentleman who's a real smart businessman. He saw something that these natural gas companies need, and he went out and he created a small manufacturing business to provide it. He's creating jobs, really good jobs for people, skilled jobs in order to produce the supplies that the companies need. And you know what, that's good for everybody. That's Elk County.
In Centre County, my home county, there's a road contractor there. We know that we have a lot of problems
with our roads. We're challenged both in the State and Federal budget in terms of money right now. But this road contractor is doing great things, as are a lot of small excavating companies, in terms of pad preparation and paving those roads. You talk about our roads are getting better. The gas companies are investing a significant amount of money early on to build roads, rebuild roads that really have never been built before.
In Pennsylvania we have what's called Pinchot roads, named for a former Governor, that don't have much of a base. So in the spring when the farmers are out there and are running their tractors, they rut up and get muddy. They've never had a firm base. Well, today, those Pinchot roads are being rebuilt really appropriately for the first time. And all of that is driven, that's a secondary benefit of the natural gas opportunity.
If you go to Warren County, we've got a longtime natural gas producer up there. It's a small, independently owned company. They've been in the oil and natural gas business I have to think for decades. Now today, they're partnering with a very large national company, so they're helping to bring outside dollars into the Fifth District of Pennsylvania, and they're creating more jobs.
The growth of the hotels, the hotel industry, is just booming, and those hospitality jobs are great jobs. In Clinton County, closer to my hometown, we have international companies that are relocating to rural Pennsylvania. International companies relocating and creating a significant amount of jobs. It's a very exciting opportunity that we're blessed with today.
I want to talk about heating costs, another benefit. This was two winters ago when the Marcellus was just starting to take off. You know, today, natural gas prices are somewhere in the neighborhood of about $2.60 for 1,000 cubic feet. Just 3 or 4 years ago, back when we didn't produce domestic natural gas--we imported it all from other countries-- natural gas was somewhere from $12 to $13 per 1,000 cubic feet, or more. And today, it's like $2.60 per 1,000 cubic feet.
Two or three winters ago, the utility in Philadelphia, about as far in Pennsylvania as you can get from where we drill natural gas, reported that the communities in Philadelphia, their home heating costs were at an all-time low. I would argue this winter, if we look in New York and Pennsylvania and all of the areas where, because of natural gas prices today, being domestically produced, those citizens who benefit from heating their homes and cooking with natural gas, their costs in a difficult economy are at an all-time low. That's something that everybody can benefit from.
In fact, one of the projects that I'm trying to work on, I think it is very important, I would like to see how we get those distribution lines for natural gas into more of our communities. My hometown doesn't have natural gas. I would love to be able to heat my home with natural gas, and I would like to at least see what Federal regulations are standing in the way of making that happen. I'm sure there's something out there that's a roadblock that we could work on.
The opportunities that we have today in terms of the benefits from natural gas are significant. They span a lot of different areas. I'm sure there are things that I haven't covered. I just want to take this opportunity to thank you for hosting this forum where we're talking about the benefits. These are really benefits that every American can experience as a result of accessing a resource that God has blessed us with.
I do. Let me talk about, just out of fairness and equity, two young men, and this was actually published in the local paper. And they were doing a coverage of the Marcellus shale. And I was very impressed with this article because it was two young men who had just graduated from a local high school, actually in Clinton County, not too far off over the line from where I live. And they had decided they were going to go for a little technical training. They were going to go to a community college setting, get a certificate program, basically for driving a truck. And they did that, and then they secured jobs with someone who I assume was hauling sand or hauling water for the Marcellus operations around the area. These young men I have no doubts are today, and fairly fresh out of high school, are earning somewhere in the neighborhood of over $60,000 a year, and probably with overtime a little more. That's a pretty incredible start for a young person.
Because I have to believe that my district, the 22 percent of the landmass of Pennsylvania that I serve is probably a lot like your district that our number one export for many years has been our young people. We educate them, and I like to think we do a good job of that, and they go to where there's opportunity. And there has not been opportunity in our economies, and our areas have been somewhat depressed economically for some time. And today, opportunity has returned. That is what this has been.
And there are jobs sitting open now of all types. And that's the exciting part. When I hear about people that are unemployed--and we have had folks protesting about not having jobs. Well, come to the Fifth District of Pennsylvania. You don't have to work in the
natural gas industry, because the natural gas industry they've kind of taken, they've been able to recruit some really good folks out of other positions. Some of those have been retail positions, service positions and manufacturing positions, but now those jobs are sitting open. And that's the effect that this kind of an economic opportunity has.