Developers working in the Marcellus Shale natural gas formation will ultimately contribute billions of dollars to the northeastern US economy, according to the president of the Marcellus Shale Coalition.
Kathryn Klaber, whose organization consists of about 100 players in the steel and petroleum industries, spoke yesterday near Pittsburgh about potential business opportunities blooming in the shale formation that underlies much of Pennsylvania, Ohio, West Virginia and New York.
“There are supply chain links being developed daily,” Klaber said. “It’s part of a broader energy transformation going on in this country.”
She said 1,743 wells are expected to be drilled in Pennsylvania’s shale in 2010 alone, according to a study done by Penn State University. By 2020, that number will reach 3,587, Steel Business Briefing learns.
The value added to the local economy is likewise predicted to surge from $8.04bn in 2010 to $18.85bn by 2020. The figures include spending surrounding new drilling, including logistics, water management and permitting.
“You hear terms like ‘gold rush’ and ‘flash in the pan’ (about the Marcellus Shale),” Klaber said. “That could not be further from the truth. This is a long-term play.”