Study: Marcellus Shale boom has led to lower energy costs

October 30, 2017

A study has found that Pennsylvanians' wallets have benefitted from the Marcellus Shale drilling boom over the past 10 years.

The University of Pennsylvania looked at data from between 2007 and 2016, and found that natural gas prices have "decreased significantly," up to 40 percent for residential consumers, the study found.

"Pennsylvania consumers enjoyed more significant cost reductions than national averages," according to the study.

Industrial and commercial costs also fell between 44 percent and 65 percent, and commodity rates that natural gas distribution companies are permitted to charge customers has fallen by 72 percent.

However, delivery rates for residential, residential heat and small commercial consumers increased 2.67 percent during those years, according to the study.

Across the state, demand for natural gas has also increased 250 percent, with the electric power sector growing from the state's smallest to largest for natural gas demand, compared to only a 46 percent increase in demand across the country.

Annual natural gas production grew by 2,800 percent, larger than any other major gas-producing state. Nationally, production is up 32 percent, thanks in large part to Pennsylvania, which grew from producing 1 percent of U.S. natural gas to 16 percent.

Read entire article at Pittsburg Business Times.

 

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