October 30, 2023
Stopping Economic Disaster: The Democrats and Their Green New Deal
The morning began with a disastrous Democrat-led House Environmental Resources and Energy (ERE) Committee informational hearing to discuss their caucus’ desire to stop all oil and gas extraction within the Commonwealth. To bring the conversation back to reality the House Republican Policy Committee convened a hearing of their own to champion a prosperous and energy rich vision for our nation’s future. Chairman Kail’s purpose for the day’s hearing was the total opposite of what Pennsylvania Democrats espoused, as Republicans brought energy stakeholders to the table and learned of their accomplishments, the necessity of their industry, and the obstacles they face as they work to bring affordable, reliable, and sustainable energy to the people of Pennsylvania.
The testifiers that joined the Policy Committee were as follows:
Jim Welty - Vice President of Government Affairs, Marcellus Shale Coalition
Michael Ford - Secretary-Treasurer for the Trades Council & Construction Trades
David Taylor - President & CEO, Pennsylvania Manufacturers’ Association
Questions for the Panel
Jim Welty, Vice President of Government Affairs for the Marcellus Shale Coalition, began the day’s hearing by providing a compelling perspective on Pennsylvania's energy landscape. He underscored that Pennsylvania is the second-largest natural gas producer in America, surpassed only by Texas. The state is also the largest exporter of natural gas in the nation, primarily feeding our neighboring states. Mr. Welty highlighted the strength of Pennsylvania's oil and gas regulations, which are among the strongest in America and worldwide. He emphasized that the natural gas industry has played a crucial role in reducing Volatile Organic Compounds (VOCs), Nitrogen Oxides (NOx), and Greenhouse Gases (GHG) in the Commonwealth since the natural gas boom in 2005. In fact, the Commonwealth met the Paris Climate Accords standards far ahead of schedule thanks to the rapid utilization of clean burning natural gas derived from the Marcellus Shale findings at the turn of the millennium.
A contribution to the Commonwealth that cannot be reproduced by any other energy means is the massive financial impact oil and gas brings to PA. Mr. Welty stressed that the industry contributes significantly to Pennsylvania's economy, with $6 billion in royalty payments made to PA landowners each year. Additionally, Act 13 Impact Fee funds are provided to every County in the state and have supported numerous community projects. Even if a community has zero oil and gas wells, they still receive yearly payments from the drilling industry to better their communities.
The legislation entertained by the Democrat ERE Committee just hours before the Policy Committee’s hearing is entirely based on false findings initially pursued by then Attorney General Josh Shapiro. Mr. Welty directly addressed the 2020 grand jury report on oil and gas setbacks that inspired HB170, and pointed out that then Governor Wolf and his Department of Environmental Protection described the grand jury report as "a disservice to the citizens of the Commonwealth" and highlighted that many aspects of the report were, “factually and legally inaccurate”.
An important consideration, often missed by Democrats within their energy policy, is that if increased setbacks were put in place landowners would be unable to access the resources beneath their property without realistic or fair means of compensation, effectively constituting a taking of their property. Government cannot take property without compensation, yet Democrats in Pennsylvania and across the country are intent on depriving landowners of their resources by any means they have available. The legislation being entertained by House Democrats, HB170, disallows oil and gas operations from accessing 90+% of the state and is a de facto ban on oil and gas development without any money set aside to compensate PA landowners.
Mr. Welty pointed out that studies from various sources, including the Environmental Protection Agency (EPA), Susquehanna River Basin Commission (SRBC), Department of Energy (DOE), US Geological Survey (USGS), and more, have consistently shown that hydraulic fracturing does not harm groundwater. He also emphasized the industry's commitment to responsible practices and highlighted that Pennsylvania has the lowest methane loss from natural gas in the world. The Commonwealth, and the entire world, benefits immensely from the safely extracted and clean burning oil and natural gas found under our Pennsylvania shale.
“The war on natural gas will send us to the dark ages. 50%+ of PA electricity is derived from natural gas.”
Jim Welty
Vice President of Government Affairs, Marcellus Shale Coalition |
Mike Ford, Secretary-Treasurer of the Pennsylvania Building & Construction Trades Council, emphasized the importance of the oil and gas industry, its infrastructure, and the careers the industry creates. He stated that oil and gas development, along with the supporting roles surrounding the industry, provide hundreds of thousands of family-sustaining jobs in Pennsylvania. Energy development brings trade workers to all corners of the Commonwealth, and influxes of new residents and capital have brought life to smalltown rural PA. The Pennsylvania Building & Construction Trades Council wants their Pennsylvania workers to continue to find opportunity within our borders.
Furthermore, Mr. Ford highlighted that oil, gas, nuclear, and coal power plants are the only sources of baseload electrical generation. Without baseload energy, the grid faces the risk of collapsing. There must be a constant supply of energy being fed through our infrastructure and into our homes, only possible through energy sources that work independently of weather. Mr. Ford expressed concerns about the impact of the energy tax known as the Regional Greenhouse Gas Initiative (RGGI), noting that the proposal discouraged investment in Pennsylvania and led trades workers to seek employment in neighboring states. Even with RGGI not being in place, the mere conversation has scared away opportunity and family-sustaining jobs to energy-friendly states like Ohio and West Virginia.
Mr. Ford also underscored the significant positive impact of natural gas work on rural Pennsylvania, mentioning that small towns have benefited from increased funds, retained residents, and maintained viable agricultural land through subletting portions for oil and gas operations. The loss of trade work has a ripple effect on local economies, causing businesses to lose customers and communities to lose their tax base. Ford pointed out that the closure of the Homer City Coal-Fired Power Plant due to concerns with RGGI and energy taxes, despite the plant having nothing wrong with it, resulted in a significant loss to local trades workers and the future of the Homer City region.
“We want the workers on these jobs to be from PA.”
Mike Ford
Secretary-Treasurer, Pennsylvania Building & Construction Trades Council |
David Taylor, President and CEO of the Pennsylvania Manufacturers' Association, provided insights into Pennsylvania's role as the nation's largest electricity exporter. He emphasized that the state powers its neighboring states with electricity, with our neighbor’s electricity being entirely reliant on the extraction and utilization of PA energy. Mr. Taylor highlighted that despite our neighbor’s need for our energy Susquehanna County, the number one oil and gas producing county in America, faces challenges in getting its products to market just across the border in New York and New England. The energy policy of our neighboring states bars pipelines and energy extraction within their borders, to their detriment, and PA cannot allow these self-destructive policy ideas to take root within our state.
Mr. Taylor pointed out that temperature points needed for steel production can only be reached through the use of gas and coal. There are no solar or wind powered industrial steel mills, it is simply not possible, and by attacking Pennsylvania energy Democrat policy simultaneously destroys Pennsylvania industry. Moreover, Mr. Taylor underlined the integral role of oil and gas in agriculture, where fuel is needed for vehicles and ammonia is required for fertilizer. Through science we discovered how to fertilize our crops through the ammonia within oil and gas, leading to population booms and massive growth in human achievement, and we cannot afford to sacrifice this modern necessity. He also highlighted the need for natural gas in plastics and cement production, which are key elements in building our society. In essence, by banning oil and gas, all the products of our modern world will become either unaffordable or unobtainable.
Mr. Taylor stressed the need for energy policies that consider the economic implications of their proposals. He noted that making energy more expensive leads to higher costs for everything. Our manufacturers are some of the largest energy consumers in the Commonwealth and increases in their energy bills will be paid for through the rising cost of their products. Additionally, he emphasized that studies claiming a direct link between natural gas development and health risks are unfounded, as correlation does not imply causation. Conflicting studies from the same sources and assumptions made in such studies make them unreliable, and the known benefits of the products, resources, and energy provided to us through Pennsylvania’s bounty far outweigh biased research.
“Manufacturers rely on affordable, reliable, available energy.”
David Taylor
President and CEO, Pennsylvania Manufacturers’ Association |
The day’s hearing revealed the significance of Pennsylvania's energy resources and the detrimental consequences of policies that would hinder the state's energy extraction and utilization. The testifiers provided a clear and compelling perspective on the importance of the oil and gas industry in Pennsylvania's economy and the vital role it plays in power generation, manufacturing, and agriculture. The hearing shed light on the out-of-touch and destructive energy policies proposed by Pennsylvania Democrats, underscoring the need for constructive and efficient energy policy that harness the state's abundant natural resources for the benefit of all residents.