Pennsylvania, the Saudi Arabia of Natural Gas

Pennsylvania has a power-house legacy from the first commercial oil well at Titusville to its unrivaled coal reserves and now to the natural gas locked in the Marcellus Shale formation. Though oil and coal production have largely fallen by the wayside, Pennsylvania possesses so much natural gas under its mountains that it has been named the Saudi Arabia of natural gas.

Saudi Arabia holds by far the largest proven reserves and speculated petroleum (oil) resources under its sandy landscapes. A member of the Organization of Petroleum Exporting Countries (OPEC), it takes the leading role in policy and production decisions within the group.

Meanwhile, the Keystone State of Pennsylvania has grappled with its emergent role as global leader in proven natural gas reserves and production potential. The debate within the state has centered on imposing higher taxes on extracting companies, so that they may be more properly regulated in their activities, and the free market approach which proponents argue will attract more drillers to the state.

The controversy lays in the extraction method called “hydraulic fracturing,” or more commonly referred to as “fracking.” The process involves blasting water and a mixture of chemicals deep underground to fracture or frack the natural gas from the shale rock formation. The current governor, Democrat Tom Wolf has been a strong advocate for greater regulation and revenue for the state through taxing the companies, while the Republican majority in both houses of Pennsylvania’s legislature contend that such taxation would discourage the companies from doing business in the state.

Below is a video on the fracking process. It is available on YouTube, and it comes from the Pennsylvania Department of Environmental Protection.

As usual, thank you for reading. See you on the 15th!