Pennsylvania has been instrumental in the oil and gas industry from the start, beginning in 1859 when Col. Edwin Drake successfully drilled the first 70-foot deep oil well in Pennsylvania. Now shale gas deposits in the Marcellus and Utica formations present a multitude of opportunities for both gas-producing and non-gas-producing states. Shale gas is now driving Pennsylvania's modern-day industrial revolution.
Underneath roughly 75 percent of the state lies the key to the future of the energy industry in Pennsylvania, one that has already created thousands of jobs and saved energy consumers hundreds of millions of dollars in energy bills.
In 2012, the natural gas industry reported over 5,800 wells drilled, with 2,875 producing. The state ranked 4th in shale industry economic contribution of 2010, and according to the U.S. Department of Energy estimates, the Pennsylvania Marcellus Shale projected production of 17.5 billion cubic feet of natural gas per day could represent nearly a quarter of the United States' annual natural gas production and consumption in 2020, while producing nearly 160,000 jobs. For every $1 invested by Marcellus Shale producers, nearly $2 of total economic output is generated as a result.
Plastics and Rubber
With Pennsylvania's growing supply of natural gas due to the development of its shale gas deposits, the commonwealth's already prominent plastics and rubber products industry is poised for even faster growth. Plastics and rubber manufacturing employed 46,500 people in 2010, ranking the state 6th in the country by employment. Pennsylvania also ranks 5th in the U.S. in both plastics shipment ($8.8 billion) and in value added to the plastics industry ($4.4 billion). Plastics industry shipments in Pennsylvania totaled more than $15.2 billion in 2010 and comprised 4.5% of national shipments ($341.4 billion). Plastic and rubber products are directly linked to the natural gas industry, as in the general manufacturing processes for plastics and synthetic rubbers (SRs), the raw materials – natural gas, petroleum, and coal tar – are refined, distilled and/or fractionated to produce gases, light oils, middle fractions, and heavy oils used to make a variety of medical, automotive, recreation, and construction products.
For more information about Pennsylvania please visit www.newPA.com.