Posts Tagged ‘gas’

Harrisburg, PA – Pennsylvania’s oil and natural gas industry, represented by the Marcellus Shale Coalition (MSC), American Petroleum Institute of PA (API-PA) and the Pennsylvania Independent Oil and Gas Association (PIOGA) issued the following joint-statement in response to news reports that a waste transportation company illegally discharged “sewer sludge and greasy restaurant slop” as well as produced water from drilling operations, “in holes, mine shafts and waterways,” across a six-county region in southwestern Pennsylvania:

“Illegal actions that threaten Pennsylvania’s environment and waterways cannot be tolerated. If found guilty of these appalling acts, those charged must be prosecuted to the fullest extent of the law. The oil and natural gas industry speaks with one voice in condemning these unthinkable acts and blatant disregard for the environment.”

NOTE: A press release from Commonwealth’s Acting Attorney General announcing these charges, ranging from 2003 and 2009, is available HERE.

Posted: March 13, 2011

Canonsburg, Pa. – Earlier today, the Philadelphia City Council endorsed an outright ban on responsible shale gas development along the Delaware River Basin, based on a joint council committee ‘report’. As part of today’s misguided vote, the council also directed the Philadelphia Gas Works to abstain from purchasing affordable, clean-burning natural gas from the Marcellus Shale, despite the fact that the municipal utility provider indirectly already receives Marcellus natural gas.

The council’s joint committee report — based on the testimony of 19 witnesses; one from the natural gas industry, and ten who have publically stated their opposition to job-creating Marcellus development — was written by an activist who sits on the board of a state-wide anti-Marcellus advocacy group and several council interns.

Subsequent to the vote, Kathryn Klaber — president and executive director of the Marcellus Shale Coalition (MSC) — issued this statement:

“Our organization was grateful for the opportunity to testify before council, and remains committed to actively engaging communities across the commonwealth to realize the positive economic and environmental benefits associated with Marcellus development. Unfortunately, this report does not seek to advance that constructive dialogue, but rather seeks to crowd it out by advancing a political narrative that is completely unmoored from the facts.

“Responsible Marcellus development will continue to benefit each and every Pennsylvanian through more affordable, and stable energy prices. Thanks to American ingenuity and technological advancements, more natural gas is coming to market each day, translating directly to consumer savings and energy security for our nation. Just two years ago, natural gas prices hit $14 a unit. Today, because of America’s shale gas revolution, prices are holding stable near $4 a unit. While it’s true the Philadelphia Gas Works doesn’t directly purchase Marcellus gas, the fact remains that additional Marcellus gas is going into the interstate pipeline system, directly benefitting Philadelphians.

“The development of this clean-burning resource is tightly regulated and subject to a host of stringent environmental laws and regulations. Our industry has a long-standing working relationship with state regulators to ensure that Marcellus development is done safely, environmentally responsibly and in a way that protects groundwater. From enhanced well casing standards to recycling water to increased permitting fees allowing DEP to hire additional inspectors without adding a financial burden to state taxpayers, the natural gas industry remains supportive of effective, smart regulations and is committed to working with regulators as this responsible development expands.”

·         The New York Times recently reported that the Obama Administration fully supports the issuance of draft regulations for Marcellus development along the Delaware River Basin, noting: “The administration’s position is to continue fully supporting the need for a cumulative impact study. … Simultaneously, all these agencies support the DRBC’s decision to develop and release draft natural gas regulations.”

·         Further, President Obama has embraced the need to expand domestic natural gas production. The New York Times, on Nov. 4, reports: “’We’ve got, I think, broad agreement that we’ve got terrific natural gas resources in this country,’ Obama said when he was pressed for issues on which he could compromise with Republican leaders. ‘Are we doing everything we can to develop those [domestic natural gas resources]?’“

By Kathryn Z. Klaber
Ithaca Journal // Press & Sun Bulletin // Elmira Star-Gazette
January 17, 2011

• “The irony is that New York consumes more natural gas than any state east of the Mississippi, with more than 30 percent of the state’s electricity derived from it (10 percentage points above the national average) and more natural gas used in the transportation sector than every state but California. There’s a reason that New Yorkers boast the lowest per-capita carbon dioxide emissions of anyone in the country — and it’s not just because of the subway. It’s because of natural gas.”

On a dreary afternoon last summer in Schenectady, the man who would later become commissioner of New York’s Department of Environmental Conservation (DEC) rose to the podium at a luncheon event marking the 40th anniversary of the agency to urge a cautious approach in deciding whether to develop the state’s enormous reserves of natural gas from the Marcellus Shale. “I see no reason,” Open Space Institute president Joe Martens said, “to rush to judgment on a decision as monumental as hydrofracking.”

His alternative? Continue to keep the DEC regulatory and review process on hold until the EPA completes its latest study on fracking, set for release in 2012. Martens asks: “What’s the downside of waiting for the results?”

He was recently sworn in as the new head of the DEC, a position that will help determine the future of Marcellus development.

On its face, the notion of waiting around a few extra years to tap resources that have been in place for 390 million years isn’t entirely unreasonable.Continuing to delay the issuance of strict new regulations governing responsible Marcellus development, however, may result in far fewer jobs and much less revenue for New York.

In Pennsylvania, Marcellus exploration created more than 88,000 new jobs over the past two years, with researchers from Penn State predicting that number will climb past 110,000 new jobs over the next 12 months. Some of these jobs go to the folks who drill the wells, naturally — but the vast majority are along the supply chain. Certainly there will be thousands of jobs created if New York decides to develop the Marcellus. Less certain is how many of those jobs will follow if Albany continues to delay.

We’re talking about the people who forge steel, manufacture pipe, produce sand, do environmental work, research deeds and operate hotels. Faced with the prospect of indefinite delay in New York, these folks have decided to move ahead in Pennsylvania instead — building facilities and opening offices less than a half-hour’s drive from New York’s border. Those jobs will remain in Pennsylvania, and the longer the delay, the better the chances they’ll be held by Pennsylvanians.

The other key point to consider is infrastructure. According to Pennsylvania production figures, 19 of the top 20 producing natural gas wells in the entire state reside along a three-county stretch bordering New York. As more wells are developed there, available space in the existing pipeline network will gradually shrink.

The irony is that New York consumes more natural gas than any state east of the Mississippi, with more than 30 percent of the state’s electricity derived from it (10 percentage points above the national average) and more natural gas used in the transportation sector than every state but California. There’s a reason that New Yorkers boast the lowest per-capita carbon dioxide emissions of anyone in the country — and it’s not just because of the subway. It’s because of natural gas.

The short-term economic case for harvesting clean energy resources from the Marcellus is no less compelling — especially with 900,000 New Yorkers out of work, and the state dealing with a $9 billion gap in its budget. New taxes, pay freezes for state workers, consolidation of public schools — these are some of the tools that Gov. Andrew Cuomo has indicated he’ll use to get the state back on a path toward fiscal sustainability. Why not one more?

Has there ever been a more important time to take advantage of these opportunities? Has there ever been a more obvious one?

Klaber is president and executive director of the Marcellus Shale Coalition.

The Mountain State’s acting governor, Earl Ray Tomblin, a Democrat, said this about responsible Marcellus Shale development in his state of the state address yesterday in Charleston:

As the responsible development of the Marcellus Shale’s abundant, clean-burning natural gas reserves expands across the region, more stable and affordable supplies of homegrown energy are being delivered to consumers and small businesses who continue face tremendously difficult economic hardships. At the same time, this environmentally-proven production is helping to create tens of thousands of good-paying jobs for the local workforce, and positively impacting rural communities and small towns. At least largely in Pennsylvania, and West Virginia too.

You see, despite the fact the world’s first natural gas well was drilled in New York State some 185 years ago, the Marcellus Shale’s economic, environmental and energy security benefits are being fully realized in Pennsylvania, but not in the Empire State. Why? Well, leaders in Albany continue to maintain a policy of ‘hurry up and wait,’ keeping a de facto shale gas production moratorium in place as the state struggles with high unemployment and a spiraling budget crisis.

So what are other leaders, from neighboring Marcellus Shale gas-producing states, saying about this historic energy and economic development opportunity?

West Virginia state senator Mike Green, D-Raleigh, chairman of the Senate Energy, Industry and Mining Committee, “believes gas drilling OK if it’s safe for environment,” the Beckley Register-Herald reports. And we agree.

“We as a state, and as elected leaders, obviously are welcoming the Marcellus shale exploration,” [Sen.] Green said Friday, emphasizing the abundance of the natural gas poses a major plus for the state’s continued economic growth and expansion of the tax base. “We welcome that industry with open arms,” he said.

The Mountain State’s acting governor, Earl Ray Tomblin, a Democrat, said this about responsible Marcellus Shale development in his state of the state address yesterday in Charleston:

The development of the Marcellus Shale formation for natural gas production is an economic development opportunity for the State, and we need to embrace it! Billions of dollars of private capital have already been invested in this activity and with it has come many jobs.

The development of the Marcellus Shale has the potential to restart the manufacturing industry in West Virginia. It is an opportunity that we simply cannot let go by.

How about water use in the shale gas production process, is it being effectively managed to ensure that the environment is protected? It absolutely is, according to Pennsylvania’s top environmental watchdog, Department of Environmental Protection secretary John Hanger. Secretary Hanger writes this in a recent Landsdale Reporter column:

Here’s the reality: every drop of tap water that was publicly treated is required to meet the safe drinking water standard.

And here’s what they’re saying about economic development and job creation tied directly to the responsible development of the Marcellus Shale’s clean-burning natural gas reserves, which continues to be largely left off the table in New York:

• “Opportunity knocks for economic development”: Drilling in the Marcellus Shale could rescue the ailing Southern Tier economy. But is it safe? Recovering this vast, lucrative resource relies on hydrofracking, which, while banned in New York, is legal in 12 states. We should lift the ban and drill. In 2010, Marcellus drilling generated 98,000 jobs and pumped $14 billion into the Pennsylvania economy. Over the next decade, Marcellus development will create 212,000 new jobs and generate $1.8 billion in tax revenues for Pennsylvania. Imagine your property taxes slashed, local businesses thriving and new ones opening. Imagine cash-strapped farmers holding onto the family farm, thanks to drilling income. This is only a dream in New York because big-city politicians want to keep upstate powerless and poor. … Ohio Gov. John Kasich is encouraging Marcellus Shale drilling; he says “there’s real potential to help a lot of people who have been in deep economic trouble for a long time.” Meanwhile, New York is on life support. Marcellus drilling could transfuse economic life into our area. (Elmira Star-Gazette Op-Ed, 1/12/11)

• “Natural gas drilling company looking to hire 90 with goal of all local labor”: Brothers Steven and Alan Peetz of Drums did well for a few years, driving trucks for a contractor involved in residential construction. The number of days they work, however, declined as fast as housing starts. On Tuesday, the brothers visited Scranton to see if they could get into the Marcellus Shale industry with Pumpco Services, a firm that performs hydraulic fracturing of natural gas wells. More than 300 people filled out applications with the company. Pumpco local operations manager, Andy Winkler, said he was gratified by the turnout at the Radisson at Lackawanna Station hotel. … People need to enjoy working outside and should be mechanically inclined. The job includes training on fracking technology, and the company is willing to train employees to get their commercial driver’s licenses. The company is also looking for diesel mechanics and a few electricians. (Scranton Times-Tribune, 1/12/11)

• “Natural gas boom keeps Sunbury painter busy”: Jamie Brumbach credits the booming natural gas industry with keeping him out of the poor house. “Without it, I’d be poor and unemployed,” said Brumbach, an industrial painter who signed a contract about six months ago to paint trailers used to haul frack water. … Brumbach is among thousands of Pennsylvania residents employed as a result of dozens of companies drilling in Marcellus Shale in the state’s Northern Tier. “It’s huge, and I’m all for it,” he said of the business. (Daily Item, 1/13/11)

• “Gas Drilling Company Hiring PA Workers”: One of the companies involved in natural gas drilling in our area wants to hire more local workers. Pumpco is holding a job fair until 3 p.m. Tuesday at the Radisson Hotel in Scranton. The company has about 30 openings. … The job involves working 14 hour days, 12 days on, 12 days off. Pumpco will pay 80 percent of the cost of your health care insurance, which includes medical and dental. Management said some of its workers can make $160,000 a year. (WNEP-TV, 1/11/11)

• “Atlas Energy launches $3 million expansion of Fayette facility”: One local natural gas exploration company has broadened 10-fold in the past several years and is continuing its growth with a $3 million expansion. Atlas Energy this month began construction on a 30,000 -square-foot addition to its office in the Fayette Business Park in Smithfield. The addition will include approximately 100 new office spaces, in addition to several large group-meeting rooms. The additional office space will accommodate many of the new employees that Atlas has hired over the past several years. In 2010, Atlas hired almost 70 new employees in Fayette County alone, “which is a big reason why we needed to expand our office,” Jeff Kupfer, Atlas senior vice president, said. … Company-wide, Atlas Energy has hired more than 210 new employees in 2010. (Herald-Standard, 1/9/11)

• “Regional job outlook starting to improve”: To the west, Broome monitors the Elmira area, which is seeing growth because of the booming Marcellus Shale natural gas play in Pennsylvania. When Texas-based Schlumberger Technology Corp. completes construction of its new facility in Horseheads later this year, the company predicts 300 to 400 new jobs will have been created during the transition from a temporary operating facility to a permanent one. The net effect on the regional job count falls right in line with the New York State Labor Department projections – a 38 percent increase in the number of people working for companies that provide support services for the natural gas industry. (Press & Sun-Bulletin, 1/8/11)

With 900,000 New Yorkers out of work, and the state dealing with a $9 billion gap in its budget, the question remains: What are leaders in Albany waiting for? New taxes, pay freezes for state workers, consolidation of public schools – these are some of the tools that New York Gov. Andrew Cuomo has indicated he’ll use to get the state back on a path toward fiscal sustainability.

How about one more? According to one study, Marcellus development could help create 16,000 new jobs and $15.3 billion in economic activity – and that’s just in Broome County alone.

 A Laflin-based coal company has signed the largest Marcellus Shale gas lease so far recorded in Lackawanna County.

 Silverbrook Anthracite leased six parcels totaling 1,635 acres in Archbald and Carbondale Twp. To Davis Land Services, a Texas-based land services agency, in October.

The atrium of the Penn State Downtown Theatre Center was standing room only last Wednesday for the first Research Unplugged event of the fall semester, a conversation with Marcellus Center for Outreach and Research co-directors Michael Arthur and Tom Murphy on the economic and environmental impacts of Marcellus Shale drilling in Pennsylvania.

Tom Murphy opened with the question “Why here? Why now?”

“The geology here is really superior,” Murphy noted. He presented data showing that the first six months of gas extraction in Bradford (the highest-performing county in Pennsylvania) has resulted in more than double the yield of a comparable county in Texas where gas companies are drilling into the Barnett shale.

Tapping the gas reserves in Pennsylvania’s Marcellus Shale will have a big impact on the state’s economy, he said. “We’ve been a net importer of energy over the course of time…but the expectation is that by 2013 we’ll actually be a net energy exporter.”

Murphy explained that yields from the wells are already exceeding early expectations. “Most of these wells are expected to run somewhere between 30 and 50 years…They’re looking at the overall yield for those wells at being somewhere between 3.5 and 4.5 billion cubic feet of gas over that whole duration of time,” he said.

Geoscientist Michael Arthur stepped in to explain the technical steps of extracting gas from the Marcellus Shale, including the controversial process known as hydraulic fracturing—or “fracking. Arthur explained that proper cementing of well shafts is critical to protect groundwater. “As you can imagine,” said Murphy, “just statistically, if nothing else—with more trucks, more people, more activity, with an industrial process—there’s going to be accidents and we’re seeing those occur…That’s likely something we’re going to see again statistically going forward. But the level of that at this point in time, with the amount development that’s occurring, still seems relatively low.”

Fielding questions from the audience, Murphy and Arthur touched on a variety of concerns, including where the large volume of wastewater goes, the prospect of a severance tax for the extraction of natural resources, the impact of well construction on highway traffic, and several other issues.

In wrapping up the hour-long discussion, Murphy stressed the importance of proper well construction. “My concern goes back to the integrity of the well as it is being drilled. The way it’s being cased—the grouting and the standards that are being used there—that’s where my concern is.” And, he added, well safety standards are being addressed, among a number of other issues, by Pennsylvania’s Department of Environmental Protection, with more inspectors being added to enforce the state’s environmental regulations.

Join us Wednesday, October 20, for our next conversation: “The Diabesity Tsunami: Facing the Crisis of Diabetes and Obesity,” featuring Associate Professor of Medicine, Robert Gabbay.

— Kelsey Bradbury, Research Unplugged intern

Originally Posted At: PSU.edu

MSC President Underscores Industry’s Commitment to ‘Getting it Right’: “Game-changer” and “revolution” are two words being thrown around to describe the Marcellus shale, a natural gas industry spokeswoman said. And, the potential impact that shale drilling can have — on the economy, on communities, on the environment — just underscores the importance for the industry to get it right, especially with the entire world watching. That was the message of Kathryn Klaber, president of the Marcellus Shale Coalition. … Klaber added that there are no second chances for getting it right. “The way I see it, we’ve got on opportunity to get this historic opportunity right,” Klaber said, “and I can really, very confidently speak for the industry as to how the folks that are in this industry every day are committed to doing that.” (Blairsville Dispatch, 12/10/10)

Gov. Tom Ridge: The Natural Gas Industry is Committed to Getting ‘It Right’: Former Gov. Tom Ridge talked about how he is working to guide development of the Marcellus shale play in Pennsylvania. … He focused his comments on the Marcellus shale play and the principles the Coalition has adopted. “We work hard every single day to make sure we’re doing this in a way I would insist on had I been governor,” Ridge said. “We only get one chance to do it right. At the end of the day, we have an extraordinary opportunity to build more miles of rail lines, have more Pennsylvanians employed and invest in Pennsylvania.” (Wellsboro Gazette, 12/8/10)

Marcellus Pioneer Range Resources Projects 1,000 Pa. Jobs: “Range Resources Corp. could employ 1,000 workers in Western Pennsylvania five to eight years from now, an executive said Wednesday as the natural gas producer marked the start of construction on its new Appalachian offices. The Fort Worth-based company has 300 employees now in the region and 400 across Pennsylvania. All but about 20 are from Pennsylvania, West Virginia and Ohio, Ray N. Walker Jr., senior vice president of Marcellus operations, said at the building site in the Southpointe II complex in Cecil in Washington County. … “Brick and mortar is one of the most visible signs of the hiring and the permanent commitment that (gas production) companies are making in Pennsylvania,” said Kathryn Klaber, president of the Marcellus Shale Coalition. (Tribune-Review, 12/9/10)

PA Workforce Development Official: ‘[Natural] Gas Related Industry is Our Big Gold Rush for Pennsylvania’: “[Richard Stetz, CareerLink regional manager] said mainly because of the natural gas drilling industry, the area has “lots to look forward to. More so than other parts of the country.” “Gas related industry is our big gold rush for Pennsylvania and don’t forget oil, which they say is under the shale,” he said, adding, “usually this is a slow period for us, but we are as busy as ever. Now all you see are triaxle trucks so things are booming.” (Williamsport Sun-Gazette, 12/11/13)

Gov. Ridge: ‘U.S. Security in Natural Gas’: “What we have is natural gas,” Ridge said. “It’s here, it’s secure.” Now retired from public life, at least temporarily, Ridge has his own company and is a strategic adviser to the Marcellus Shale Coalition, which oversees natural gas exploration and production in the deep reserves beneath the Pennsylvania soil and neighboring areas of the Northeast. Shale gas has pushed the United States into uncharted territories for finding and using the domestic fuel and helping wean the nation off imported oil, he said. “I think it’s time we put America at the head of the global energy parade,” Ridge said. “That’s our mission; that’s not a mirage.” … Natural gas also has a clean energy component for powering electrical generation plants: it has half the carbon emissions of coal and basically zero particle emissions, Ridge said. (The Oklahoman, 12/10/10)

MD State Senator Says Marcellus Production Key to ‘Making us Energy-Independent’: “Western Maryland’s role as the state’s energy frontier doesn’t bother state Sen. George C. Edwards, a Republican who represents Garrett and Allegany counties. He says the income and jobs from each energy project are badly needed in communities where unemployment is higher than average. “We’re the only place in the state that has energy, except for wind,” Edwards said. “This country should be energy-independent. We ought to be part of making us energy-independent.” (Balitmore Sun, 12/13/10)

Marcellus Providing an Opportunity for Region to be ‘a Leader in Energy Development’: “Ms. Klaber [of the Marcellus Shale Coalition] showed a map of Marcellus wells by Pennsylvania county and discussed the current and future economic impact of shale development. “There’s a lot of opportunity for this part of the country to be a leader in energy development,” she said. (Post-Gazette, 12/9/10)

Economic Development Group Says Marcellus is Sending Rail Industry Booming: “Four new sand silos have gone up on Growth Resources of Wellsboro property in Delmar Township, reported organization Secretary Mary Worthington, and four more will be going up in 2011, all due to the natural gas industry, she said. “Wellsboro and Corning Railroad is busy,” she added. (Williamsport Sun-Gazette, 12/11/13)

Responsible U.S. Shale Gas Production Soars, Driving Down Energy Prices for Struggling Consumers

‘Happy Holidays,’ PA Consumers: Marcellus Production, Natural Gas Helping to Keep Home-Heating Costs Down: “Even though natural gas drilling is up, the prices for residential customers are down, according to UGI Utilities Inc. representative Andrew Rohrer. “On the natural gas utilities side, those meters are humming with this cold weather, but the good news is it won’t cost as much. Gas prices have come down by about 10 percent for the average residential customer, which is great news heading into the heating season. So happy holidays,” he added. (Williamsport Sun-Gazette, 12/11/13)

U.S. Dept. of Energy: ‘Natural Gas Production May Rise to Record in 2010’: “U.S. natural gas production this year may reach an all-time high as drilling for the heating and power-plant fuel increased. Gas output will average a record 62.09 billion cubic feet a day this year, Energy Department production data show. (Bloomberg, 12/7/10)

‘North America: The New Energy Kingdom’: “With rising production from shale fields, the U.S. surpassed Russia last year to become the world’s largest supplier of natural gas. Shale now accounts for 10 per cent of the country’s natural gas production – up from 2 per cent in 1990. … For natural gas, the U.S. has the four largest fields in the world: the Haynesville field in Louisiana (with production up by 77 per cent in 2009); the Fayetteville field in Arkansas and the Marcellus field in Pennsylvania (both with production up by 50 per cent); and the Barnett field in Texas and Oklahoma (with production up by double-digit increases). The EIA reports that proven U.S. reserves of natural gas increased last year by 11 per cent to 284 trillion cubic feet – the highest level since 1971. (Globe and Mail, 12/9/10)

On Hydraulic Fracturing’s Record of Environmental Safety

MSC President Reinforces PADEP Facts Regarding Fracturing’s Clear Environmental Safety Record: “What gets a lot of attention is the hydraulic fracturing process. Well, the regulators and others who study this very carefully (say) that is not the biggest risk. It’s very difficult, and in fact, has never been shown that from 8,000-feet down a process is contaminating drinking water,” Klaber said. “We’re focused on where the real challenges are, which is making sure you don’t have any spills, and there’s no surface interactions with the compounds we use.” (Blairsville Dispatch, 12/10/10)

University of Houston Prof. and Petroleum Engineer PhD: ‘The Industry has an Impeccable Safety Record’: “Hydraulic fracturing is an absolutely necessary process for removing natural gas from the ground and cultivating this very attractive and environmentally friendly form of energy,” said Dr. Economides. … As recently as November 2010, the Pennsylvania Department of Environmental Protection released a report showing that there have been no documented incidents of groundwater contamination as a result of hydraulic fracturing. (Release, 12/9/10)

Some PA Residents to See Nearly 11 Percent Drop in Gas Bill Immediately; Even More Domestic Supplies on the Way

• Philadelphians to save more than $22.6 million over next three months alone
• UGI customers to experience between 8.1 and 10.7 percent reduction in monthly bill
• Rates more than 13 percent lower than a year ago

PGW announces cuts in gas rates
Philadelphia Inquirer
Andrew Maykuth
November 29, 2010

Just in time for the winter heating season, Philadelphia Gas Works announced Monday it will decrease natural gas rates for the next three months, saving the average residential heating customer about $14.69 per month.

The municipal gas utility will lower its residential gas-supply charge from $1.60 per hundred cubic feet to $1.50 on Wednesday. The charge for commercial and institutional customers will also be reduced.

The supply charge is adjusted quarterly to reflect changes in the wholesale market price of natural gas, which is depressed because of the recession and abundant supplies from new resources such as shale-gas.

Based upon current market projections, the company anticipates that its rates should remain stable through the spring.

UGI cuts natural gas rate by 8.1 percent
Reading Eagle
Dan Kelly
November 30, 2010

Citing falling market prices and a growing supply, UGI Gas Utilities said Tuesday that it will decrease the rate it charges for natural gas by 8.1 percent beginning today.

UGI provides natural gas to 82,000 customers in the greater Reading area.

In addition, the utility owns UGI Central Penn Gas, which has several hundred customers in Hamburg and Shoemakersville, and in Centre, Perry, Tilden and Windsor townships. The rate for those customers will drop by 10.7 percent beginning today.

The average monthly bill for a UGI customer will drop to $103.60 from $112.76, officials said.

Central Penn monthly bills will drop to $83.01 from $92.92, they said.

Since 2008, UGI customers’ rates have fallen 30 percent and Central Penn customers’ bills have dropped 35 percent, company spokesman Joseph Swope said.

“We’re only starting to see the impact of the Marcellus shale gas supply,” Swope said. …”For the first time in a long time we have this huge supply of gas sitting here locally and better yet, it’s hurricane proof.”

By 2018, Swope said, the Marcellus shale will be producing 4.6 billion cubic feet per day, or 40 percent of all natural gas currently used in the Northeast.

U.S. proved natural gas, crude oil reserves soar – EIA
Reuters
Selam Gebrekidan and Joshua Schneyer
Nov 30, 2010

U.S. natural gas reserves increased by the most in history last year, and crude reserves also rose, as companies drilled frantically into shale rock formations with new technology, the Energy Information Administration said in an annual report on Tuesday.

U.S. net proved natural gas reserves rose 11 percent, or 28.8 trillion cubic feet (tcf), in 2009 to total 284 tcf, underscoring the dramatic impact that new gas pumped from shale rock formations is having on world energy supply.

“These increases demonstrate the possibility of an expanding role for domestic natural gas and crude oil in meeting both current and projected U.S. energy demands,” EIA researchers said in their report.

Proved reserves — which now stand at the equivalent of 12 years of gas consumption and 3.3 years of oil demand — represent energy supplies that are extensively charted out and could be tapped under current market conditions. Total recoverable reserves, however, can be far higher.

Philadelphia Inquirer
Sat, Nov. 20, 2010
 
The editorial “Buying good publicity” (Saturday) states that, “The greatest safety concerns from Marcellus Shale drilling stem from the impact on drinking water by the use of a water-and-chemical mix to break through to gas formations thousands of feet underground.” However, your readers should understand that fracturing fluids are 99.5 percent water and sand, with a fraction of additives used to reduce friction in the well bore and to kill bacteria (all components are listed on the state Department of Environmental Protection’s website). These fluids have never impacted groundwater, a fact that has been confirmed by DEP Secretary John Hanger.
 
The shale-gas industry – which, according to experts at Penn State, will have helped create 88,000 jobs in the commonwealth by year’s end – is committed to responsibly ensuring that we maximize the economic, energy security, and environmental benefits of the Marcellus Shale for all Pennsylvanians. We are devoted to getting this opportunity right. Our industry is taking commonsense steps to ensure that groundwater is protected and that responsible Marcellus development will continue to help put tens of thousands of Pennsylvanians to work. At the same time, our industry’s work is generating much-needed revenues for our cash-strapped state government, as well as for local municipalities, while also directing our nation on a path toward a more secure, cleaner energy future.
 
Kathryn Z. Klaber
President & Executive Director
Marcellus Shale Coalition
Canonsburg

Read this editorial on the Philadelphia Inquirer website: http://www.philly.com/philly/opinion/20101120_Letters__Maximizing_the_benefits_of_natural_gas_for_all_Pa_.html