MARIETTA, Ohio, Oct. 21, 2019 /PRNewswire/ -- Natural gas end-users, which include American households, businesses, manufacturers, and electric power generators, have realized $1.1 trillion in savings since 2008 as a result of increased natural gas production in the Shale Crescent USA region (Ohio, Pennsylvania and West Virginia), according to a new economic analysis released today.
The report, Natural Gas Savings to End-Users: 2008-2018, A Technical Briefing Paper, released by Shale Crescent USA (SCUSA) and the Ohio Oil & Gas Energy Education Program (OOGEEP), available at OneTrillionSaved.org, finds that the substantial growth in domestic natural gas production resulted in more than $4,000 in savings per household over the ten-year period for those that use natural gas.
Tied directly to the abundance of affordable natural gas, residential, commercial, industrial, and electric power generating sectors in these three states have realized a combined savings of more than $90 billion since 2009.
Industrial users in Shale Crescent USA have realized nearly $25 billion in savings over the past ten years, increasing the attractiveness for new manufacturing investments – a conclusion that aligns with the findings of previous studies conducted by IHS Markit for Shale Crescent USA.
"The strength of natural gas and natural gas liquids production in the Shale Crescent region, as this report confirms, has made this region the most profitable place to build a petrochemical plant, giving manufacturers here a critical competitive edge," said Shale Crescent USA co-founder Jerry James. "Energy is the catalyst to breathing new life into American manufacturing and, after years of challenges, we are excited about the bright future in store for communities all along the Shale Crescent."
Development of the Marcellus and Utica shale formations in these states is responsible for one-third of the nation's natural gas production, and recent projections show the region will account for nearly 45 percent by 2040.
"The surge of affordable, reliable energy had an incredibly positive impact on our operations. The natural gas savings we realized were the driving force in reducing operating costs, which allowed Eagle to invest in new equipment, expand our workforce and grow as a company," said Joe Eddy, former president and CEO of Eagle Manufacturing, which produces over 750 products from their Wellsburg, West Virginia site.
The report also demonstrates the dramatic energy savings delivered to residential consumers across the country. Low income households experience some of the most significant savings, with energy bills for the lowest 20 percent of incomes, dropping by 30 percent, or $315, since 2008. This would be similar to a 2.7 percent boost in annual income.
"If Ohio, Pennsylvania and West Virginia were a country, it would be the world's third largest natural gas producer – an accomplishment due to technology innovation that is unlocking energy from the Marcellus and Utica shales, and resulting in growth across the region," said Rhonda Reda, Executive Director of the Ohio Oil & Gas Energy Education Program. "The savings tied to Ohio natural gas production have been transformational for all energy consumers, particularly for low-income families who spend a disproportionate amount on energy,"
- Increased production of U.S. natural gas, led by growth in the Shale Crescent Region, has led to $1.1 trillion in energy savings nationwide.
- Over $90 billion in savings for all natural gas users in the Shale Crescent Region.
- Nearly $25 billion in savings for Shale Crescent region manufacturers and industrial users.
- U.S. households have realized an average of $4,000 in natural gas savings over the 10-year period and consumers in the Shale Crescent region have realized savings approximately 30% higher than the national average.
- Energy savings amount to a 2.7% raise for low-income families
About Shale Crescent USA:
The Shale Crescent USA economic development initiative aims to encourage business growth in Ohio, Pennsylvania and West Virginia. The multi-stakeholder initiative provides information and resources for companies looking to launch or expand business, highlighting competitive advantages and opportunities to leverage low-cost, abundant natural gas, unmatched access to key markets and infrastructure and other business advantages. For more information, please visit ShaleCrescentUSA.com.
About Ohio Oil and Gas Energy Education Program:
The Ohio Oil and Gas Energy Education Program (OOGEEP) is a non-profit statewide education and public outreach program. Created in 1998, OOGEEP provides a variety of educational, research and public outreach projects. These programs primarily focus on economic impact research, STEM programs, scholarships, firefighter training, industry safety training, workforce development and guest speaker programs. OOGEEP is funded by Ohio's crude oil and natural gas industry through an assessment on the production of all crude oil and natural gas produced in Ohio. OOGEEP is not a state agency and does not utilize any taxpayer dollars.
SOURCE Shale Crescent USA