Impact on WV Economy Due to Marcellus Shale industry Detailed in WVU Report
In a report released this week, researchers from the WVU College of Business and Economics concluded that ?[t]he economic impact of the Marcellus Shale development [on the state of West Virginia] for 2009 was $2.35 billion of business volume and accounted for generation of 7,600 jobs.? And this positive impact on the state?s economy is expected to grow into the future.
The report was funded by the West Virginia Oil and Natural Gas Association (WVONGA) and based on data obtained by the researchers through a survey of oil and gas industry representatives concerning their company?s involvement in Marcellus Shale activity in West Virginia in 2009 as well as anticipated activity through 2015. The survey sought numbers for business dollars spent, along with regulatory and policy issues of concern.
With respect to the future, by the year 2015 these researchers estimate the Marcellus Shale industry could generate as much as $890 million in economic impact (direct, indirect and induced) from employee compensation in West Virginia. By way of comparison, for 2009, the researchers calculated economic impact from employee compensation from the Marcellus Shale industry at nearly $298 million. The researchers call these estimates conservative because they do not include items such as royalty payments, landowner bonuses, or severance taxes paid to the state.
Should you have questions about this or any matter involving energy law, please contact the Energy Group at Steptoe & Johnson PLLC.