Study finds economic benefits for Garrett, Allegany counties
Matthew Bieniek Cumberland Times-News
CUMBERLAND — In an apparent effort to sway public opinion on drilling in Marcellus shale for natural gas, a state industry group has paid for two polls in six months and funded a just-released study that proclaims the economic benefits of gas drilling.
“The utilization of Marcellus shale formation in Western Maryland in order to produce natural gas would have transformative economic and fiscal impacts,” the study by Sage Policy Group said.
Among those impacts would be jobs created by each well.
“Applied to the estimated amount of total extractible natural gas available within the play, the study team projects … approximately 365 wells would be operating over the period 2016-2045,” according to the study.
“According to the Marcellus Shale Education & Training Center, it requires approximately 420 individuals across 150 occupations to bring a single Marcellus well online (only refers to direct jobs).”
The benefit to the state and Allegany and Garrett counties would be enormous. “Over the course of developing the Marcellus shale play (2015-2045), the state of Maryland would collect $213.8 million in 2011 constant dollar revenues. Garrett County would collect $162.4 million and Allegany County $64.9 million in 2011 … dollars,” the study said.
The study took a conservative approach, Drew Cobbs, the executive director of the petroleum council, said.
The council footed the entire bill for the Sage study, Cobbs said.
He said that, without consulting Sage, he preferred not to disclose the amount paid for the study. Sage is a well-known economic consulting group based in Baltimore.
According to the study, drilling makes especially good economic sense for Western Maryland.
“Allegany County continues to be associated with among the state’s lowest incomes and highest unemployment rates. Marcellus shale development represents a way for both Allegany and Garrett counties to secure a key driver of business investment and future job creation,” according to the study.
Maryland could miss out on the economic benefits of natural gas production if it creates bureaucratic and financial hurdles for gas industry, the study states.
“Policymakers should note that though Maryland has an opportunity to participate in the Marcellus shale play, its allure to the natural gas industry is somewhat limited.
“Maryland is home to only about 1 percent of the Marcellus shale play and could therefore be easily overlooked. … Maryland is even more likely to miss the opportunity if it creates an exceedingly regulated and expensive environment,” a portion of the study states.
The two polls, which produced almost the same results in response to a similar group of questions, were released in September and in January by Gonzales Research & Marketing Strategies Inc.
Neither of the polls asked respondents about the use of hydraulic fracturing to release the gas trapped in shale.
Cobbs said Gonzales offers to add questions to the poll for a fee, but that they use the same scientific methodology used in the poll questions they generate in-house.
Cobbs said he asked to have his questions added to a second poll because of the large number of bills in the General Assembly this session dealing with Marcellus Shale natural gas development.
Critics of the September poll, like Delegate Heather Mizeur, D-Montgomery, wouldn’t be any more pleased with the new poll.
In response to the September poll, Mizeur pointed out that the poll addressed the issue of natural gas instead of hydraulic fracturing.
In order to get the gas trapped in Marcellus shale to the surface, chemicals, water and sand are pumped underground to break apart rock formations and free the gas.
The process is called hydraulic fracturing.
The poll didn’t ask people if they supported the use of the process, or the environmental problems associated with hydraulic fracturing, she said at the time.
The January poll asked questions including language such as, “Should we wait for at least three years or begin safe development sooner?”
The January poll found strong support for drilling now rather than in three years when the governor’s Marcellus Shale Advisory Committee issues a final report including environmental impacts of drilling.
The poll found 69 percent of the more than 800 respondents wanted to drill sooner, while 28 percent said to wait.
The total value of the natural gas in Allegany County’s Marcellus shale could be close to $15.72 billion, with the average well earning $65,000 to $524,000 yearly, University of Maryland Extension staff has said.
Contact Matthew Bieniek at mbieniek@times-news.com
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