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Jobs Mean a Healthy Economy

Perhaps one of the most important factors in assessing the health of an economy is the unemployment rate. So goes the unemployment rate, so goes the health of the economy.

People with jobs make money.

Because they make money, they pay taxes on their income, buy goods and services, and invest. The corollary effects of occupation are vast and the economic ripples in the pool are great.

When people are unemployed, they don’t make money, they don’t pay taxes on income, don’t buy the same goods and services, and they don’t invest like those who are employed. Therefore, from the smallest local franchise to the largest corporate office, economies feels the consequences of an unemployment rate that sits above 9%.

We could hash through all of the human difficulties faced by the regular families who are stressed by the difficulty and strain of unemployment but chances are, if you are reading this article, you may very well be one of the myriad of unemployed in the United States.

According to a statement released by the Marcellus Shale Coalition:

“The average wage in the core industries was $73,150, which was about $27,400 greater than the average for all industries.” (Center for Workforce Information & Analysis, June 2011·         “The average wage in the ancillary industries was $61,871, which was more than $16,100 greater than the average for all industries.” (ibid)  Employment Impact  ·         “Areas with significant Marcellus Shale drilling activity have seen notable decreases in unemployment rates.” (ibid)  ·         “The Northern Tier Workforce Investment Areas (WIA) experienced an increase of employment growth of over 1,500 percent.” (ibid)  ·         “The Central WIA was second in terms of employment growth by volume and by percentage with an employment increase of almost 1,000 percent.” (ibid)  ·         “Significant employment gains were seen in each WIA that had substantial Marcellus Shale drilling activity.” (ibid)    Infrastructure Investment  ·        “Marcellus shale drillers spent $411 million in the past three years to help rebuild Pennsylvania roads…” (Pittsburgh Tribune-Review, June 21, 2011)  ·         “Since 2008, approximately 21 percent of the payments have been made toward local roads, while approximately 79percent went toward improving roads maintained by the state.” (MSC press release, June 21, 2011)  Tax Revenue Generated by responsible Marcellus development  ·         “Drilling Industry Paid More Than $1 Billion in State Taxes Since 2006, Tax Payments in First Quarter of 2011 Already Surpass 2010 Totals” (Dept. of Revenue press release, May, 2, 2011) ·         “The Revenue Department’s analysis, which breaks out tax payments from oil and gas companies and their affiliates through April 2011, indicates that 857 of these companies have already paid $238.4 million in capital stock/foreign franchise tax, corporate net income tax, sales/use tax and employer withholding to the state in 2011. These figures from the first quarter of this year already exceed by nearly $20 million the total tax payments made in all of 2010.” (ibid) ·         “The data indicate that counties with 150 or more Marcellus wells experienced an 11.36 percent increase in state sales tax collections between 2007 and 2010.” (Penn State University, February 27, 2011)  ·         “In counties with ten or more Marcellus wells, returns reporting royalty income increased 44.1 percent and tax income increased 325.3 percent.”

In case you were wondering, this is what healthy economic growth looks like.

Pennsylvania has allowed both Natural Gas drilling and Hydraulic Fracturing throughout the state and this growth is what they’ve experienced. In watching the state of affairs across their Southern border, New York State appears to be changing their tone. According to a recent survey conducted by Quinnipiac University, the majority of New Yorkers are in favor of Natural Gas drilling for employment’s sake. In a State that has been historically opposed to Natural Gas drilling and Hydraulic Fracturing, the current economic downturn, paired with the momentum gained by factual rebuttals of Anti “Fracking” hype, has created what looks to be change in the wind.

New York wants a healthier economy and they can have it.

With the credibility of Anti-Frac “industry experts” being called into question and the benefits of Natural Gas drilling materializing, the energy sector is postured to provide the casts for the broken legs of the American Economy to heal in.

The potential is that large when considering the possibility of converting trucking fleets, saving money at the pump, and freedom from dependence on OPEC. All of those factors have the potential to create more jobs. Think about it. Trucking companies cut fuel costs and can afford to put more drivers on the roads. More refining is needed and in turn more jobs.

According to Mark Green of Energy Tomorrow, “…job creation isn’t just an item that has screamed its way back to the top of the nation’s agenda. It’s the hinge of the nation, its life force – transcending politics, talking points and election campaigns.”

Natural Gas can tremendously bolster that hinge so the door doesn’t falter.

Why shouldn’t it?  It is an American energy source that creates jobs for Americans in American towns.  The largest detractors of natural gas talk about waste water problems. Siemens is currently refining a method to bring water treatment plants to Frac sites to reduce the amount of water needed for Fracturing by enabling the reuse of treated water on location. The more this is used, the more jobs it will create jobs. More regulations are being put in place which will require more inspectors.

They attack Hydraulic Fracturing when Frac’ing isn’t the problem.

So what is the problem?

The major problem is a lack of jobs that Natural Gas can help to create.  There is no perfect process and there is no magic pill to fix the mess we are in but one thing is certain: the lower the unemployment rate, the better we are, and when all the reasons for stopping the Natural Gas Industry from lowering that unemployment rate are floundering, it is time to get something done.

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