The number of new oil and natural gas wells drilled in Pennsylvania tripled between 2000 and 2007, with the state's 79,000 active wells making it third-highest among all states, a study released today shows.
Oil and gas generates more than $7.1 billion in annual economic impact, with more than 26,500 jobs directly and indirectly supported by the industry, the Pennsylvania Economy League study found. Royalty payments made to landowners in 2007 alone totaled more than $200 million, the study found.
The growing interest in the state's Marcellus Shale natural gas formation, which under lays some two-thirds of the state is one reason for the growing boom.
"Economic and technological changes have stimulated interest in the Marcellus Shale and, based on the 2007 impact of the oil and gas industry, this has the potential to generate substantial positive impact in Pennsylvania," the study said.
Some 2,000 companies operate at least one well in Pennsylvania, with more than 200 companies operating 100 or more wells in-state, the Economy League study found. The data indicates that while Pennsylvania is not ranked among the nation's top states in terms of oil and natural gas reserves, it is among the top 20 oil producers and top 16 producers of natural gas, based on state Department of Environmental Protection statistics.
Southwestern Pennsylvania is right in the thick of the state's oil and natural gas industry. Last year, 2,926 drilling permits to drill for natural gas were issued in the nine Southwest counties, led by Westmoreland County's 612 permits issued.
Westmoreland, Armstrong, Indiana and Fayette counties also were among the state's Top 10 counties for number of new oil and natural gas wells drilled between 2000 and 2007, the study found.
The oil and gas industry also pays substantially more than the average in-state private sector wage, the study shows. The average wage paid by all oil and natural gas-related businesses in 2007 was $60,779, compared to the average for all private sector industries of $42,944.
The study was commissioned by the Marcellus Shale Committee, a group of oil and natural gas companies engaged in developing the natural gas resources within the state's Marcellus Shale formation. Members include Range Resources and Atlas Energy Resources.
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