PA: Billions in Investment in 2011

Delaware Online is reporting on a recent study concluding that producers in Pennsylvania generated $3.5 billion in gross revenues last year.  The interesting part for residents is buried in later paragraphs, however:  "Patrick Creighton, a spokesman for the Marcellus Shale Coalition *** estimated that it costs the industry about $5 million to bring a well into production. With about 2,200 active wells in the state, that comes to $11 billion in additional investments, mostly over the last four years. [Moreover,] *** Creighton said the minimum royalty in Pennsylvania is 12.5 percent of well revenues, meaning property owners here were paid more than $400 million last year."  And - "Gheit [an analyst with Oppenheimer & Co.] said the real value of shale gas is that the lower energy cost is making American industry more competitive around the world. That opens doors for long-term investments, such as Shell Oil’s plan to build a huge petrochemical plant in western Pennsylvania."

Should be viewed as good, if not great, news, right?

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