Northern Panhandle Reaping Economic benefits from Shale Development

Shale Development is having a very positive economic impact on the Northern Panhandle.  Please see link below for the full article.

PA DEP Extends public comment period for Shell Pipeline

DEP extends public comment period for Shell pipeline 1/3

By Jared Stonesifer Posted Feb 16, 2018 at 11:41 AM Updated Feb 16, 2018 at 12:20 PM


The state Department of Environmental Protection has extended the public comment period for Shell Pipeline’s Falcon ethane pipeline after receiving a “significant number of requests” from residents. In addition, the agency announced it will hold public hearings in the three Pennsylvania counties where the pipeline will travel: Beaver, Allegheny and Washington. The comment period, which was originally slated to last through Feb. 20, has been extended until April 17. “After receiving a significant number of requests for a comment period extension, we believe it to be in the best interest of community participation to provide additional time for the public to provide thoughtful and constructive input on the proposed project,” DEP Secretary Patrick McDonnell said in a news release Friday. It was announced last month that the DEP was reviewing Shell Pipeline’s permit application for construction of the 97-mile pipeline, which is projected to carry up to 107,000 barrels of ethane per day to Shell Chemicals’ $6 billion cracker plant in Potter Township. At the time, significant opposition to the pipeline’s route, as well as the original 60-day public comment period, was voiced by the public. In particular, the Ambridge Water Authority released saying it was extremely concerned about the route of the pipeline, which would come within two to three miles of the Ambridge Reservoir, which supplies drinking water to more than 30,000 customers. Reached Friday, Ambridge Water Authority General Manager Michael Dominick said he was “very happy” to hear about DEP extending the public comment period and that DEP will hold a public hearing in Beaver County to discuss the pipeline.

American Chemistry Council Report:  185 Billion Investment Linked to Shale Gas

The American Chemistry Council 9 (ACC) recently highlighted chemical investment economic benefits from shale gas in a December 2017 report.

New domestic supplies of affordable natural gas and natural gas liquids (NGLs) have resulted in significant economic benefits to the United States economy. This gas supply creates a competitive advantage for U.S. chemical manufacturers resulting in more investment and domestic jobs. As of December 2017, there were 317 projects valued at $185 billion announced, with 48 percent of the investment completed or under construction. A large percentage of this investment is targeted for chemistry and plastic product exports. Increased exports will improve America’s trade balance. Shale gas development has attracted foreign investors and the United States continues to increase market share in natural gas production.

ACC reviewed the 317 projects for economic impacts. Direct jobs from 2010 thru 2025 are projected at just under 70,000. The investments will lead to $26 billion in permanent new federal, state, and local tax revenue by 2025. According to ACC the Appalachian region has the potential to become a major petrochemicals and plastics manufacturing hub. Shale development including the Shell cracker plant currently under construction will generate new jobs, higher wages, and tax revenue for this region.

We know the new cracker facility in Beaver County (PA) will create a minimum of 6,000 construction jobs. And yes, there are proposals for more cracker facilities in the Appalachian region. ACC has been providing excellent research regarding the economic benefits of ethane cracker development for the chemical industry. For the petrochemical industry, ACC projects the following impacts for the quad state region of West Virginia, Pennsylvania, Ohio, and Kentucky:

• $36 billion in capital investment
• 101 thousand jobs created and supported
• $28 billion in economic expansion
• $2.9 Billion in annual tax revenues

ACC produced a report in May 2017 titled “The Potential Economic Benefits of an Appalachian Petrochemical Industry. This report highlights lower natural gas costs in the region and shale gas chemistry/manufacturing benefits. It suggests the Appalachian Region is an excellent location for a second major petrochemical manufacturing hub in the United States.

The region’s benefits are:
• Proximity to abundant NGL resources from the Marcellus/Utica and Rogersville shale formations
• Proximity to manufacturing markets
• Will strengthen U.S. economy with employment and energy supply
• Opportunity to enable high-value ethane use to create U.S. made products, while avoiding ethane rejection

To maximize the benefits of shale gas and reach the $185 billion investment our new energy infrastructure must be completed. As you hear about pipelines and facilities planned in your community, please show your support for these projects by contacting your elected officials.

For more information about the reports above please go to:


Robert Johnson
President, ADKL LLC


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