The Pennsylvania Senate Majority Policy Committee recently held a hearing in Pittsburgh to examine Pennsylvania’s access to and affordability of energy. Chaired by Sen. Dan Laughlin, a Republican for the 49th Senate district, the committee solicited testimonies from business, labor and energy leaders to gain insight into energy policy and practical development of the Commonwealth’s energy portfolio. The Washington County Chamber of Commerce was invited to comment on future opportunities and challenges for energy growth in our state.
As we informed the committee, the revolution in natural gas production over the past 15 years has been amazing. Prior to the discovery of the Marcellus Shale, Pennsylvania was an energy importing state. Each year, the state produced only about a quarter of its annual natural gas needs. However, thanks to the emergence of this resource, Pennsylvania is now a net energy exporter and the second largest natural gas producing state in the country. Data from the US Energy Information Administration shows that Pennsylvania accounts for more than 20 percent of all domestically produced natural gas, a remarkable conversion.
More importantly, Pennsylvania’s natural gas is among the most environmentally friendly gases in the world. Our gas is produced under strict environmental regulations and industry best practices, including prioritizing methane leak detection and repair, deploying electric drilling and fracking rigs at well sites, and monitoring emissions at well production and midstream collection, processing or transport facilities.
The results of this effort have been clear, as documented in a 2022 report by the Clean Air Task Force and Ceres. The report finds that while natural gas development has continued to increase in the Appalachia, the intensity of greenhouse gas emissions has decreased. The industry itself is leading the way in reducing emissions because while the environmental benefits are important, every molecule of methane released into the atmosphere is one more than cannot be put on the market.
In addition to the success of the natural gas industry, we have also seen a strong revival in coal production. Both the total volume of coal and the market price have increased significantly over the past 12 months due to strong demand in both domestic and world markets. CONSOL Energy, for example, reported increases in production and sales in 2022, supported by stronger demand for coal, which is used for both power generation and steelmaking.
Pennsylvania has played an important role in power generation since the discovery of oil in Venango County more than 150 years ago. Our natural resources helped fuel the industrial revolution, produce the steel that built our nation, and will continue to fuel advanced manufacturing and plastics production in the 21st century. To position the Commonwealth as a leader in manufacturing and innovation, policymakers must ensure our job creators have access to clean, abundant and affordable energy resources. Additionally, it is equally important that Pennsylvania create a welcoming climate for business by offering a competitive and predictable regulatory and tax environment that encourages job creators and innovators to locate here. The power to succeed is right beneath our feet, so let’s build our future on that foundation.
Kotula is President of the Washington County Chamber of Commerce.
