Independent Oil & Gas Association of New York Praises Recent Penn State Natural Gas Study

LAKE VIEW, NY (07/31/2009)(readMedia)-- The Independent Oil & Gas Association of New York (IOGA of NY) praised the economic study by the Pennsylvania State University for the Marcellus Shale Committee and the Pennsylvania House Natural Gas Caucus.

According to the study, Marcellus Shale development will pump $14.17 billion into the state's economy in 2010 and create more than 98,000 jobs, while generating $800 million in state and local tax revenues.

As the New York State Department of Environmental Conservation is considering allowing increased exploration of the Marcellus Shale formation in this state, supporters insist New York could realize similar economic success.

"This study proves what we have held all along - the Marcellus Shale natural gas play holds significant positive economic opportunities for New York State," said Brad Gill, a certified geologist and executive director of IOGA of NY. "Natural gas is one of the cleanest, most abundant, and affordable fuels available today. While alternative sources of energy are projected to grow dramatically over the next 20 years, they alone cannot meet all of our needs. We need to embrace all forms of energy - including natural gas - which this country depends on in all facets of our lives."

Using conservative assumptions for production, commodity prices and related factors, the study found:

  • In 2008 the Pennsylvania Marcellus gas industry generates a total economic impact of $2.3 billion, 29,000 new jobs and $240 million in state and local tax revenue.
  • In 2009, the study estimates that the Marcellus industry will generate $3.8 billion in economic benefits, job creation will exceed 48,000 and $400 million in state and local tax revenues.

"Marcellus shale provides a once in a lifetime economic opportunity for New York and we cannot afford to miss out," said Gill. "We are looking forward to the Department of Environmental Conservation's release of the generic environmental impact statement and intend to comply with all regulations, as we have in the past.

"Here in New York, natural gas exploration has been conducted safely and in an environmentally sound manner for decades," concluded Gill. "Our companies have worked hard to achieve a harmonious relationship with the environment - and we will continue to do so."

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IOGA of NY is a trade association founded in 1980 to protect, foster and advance the common interests of oil and gas producers, professionals and related industries in the State of New York. IOGA of NY takes great pride in its commitment to members and their local communities.

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