DV Journal

When I was in the Senate of Pennsylvania, representing Chester County years ago, and serving as xhairman of the labor and industry committee, we became aware of the Marcellus Shale, the massive natural gas play that spans a sizeable portion of Pennsylvania.  At the time, we did not realize its full potential, although we knew it was something good for our state and wanted to know more about it.

Fast forward to today, when Pennsylvania is the second top producer of natural gas, behind only Texas. The policy decisions made so many years ago are now hitting us squarely as a region, state and nation.

Our future depends on our ability to take the product of the Marcellus Shale, natural gas, and get it to those who need and want it.  In its liquefied form, or LNG, can be shipped stored and used for production. Although Pennsylvania is a major producer of natural gas, exporting LNG to Europe and other distant markets is not happening within the state. To do this efficiently, we need a Southeast Pennsylvania LNG shipping depot, and on a scale that’s capable of serving the world.

We need bipartisan cooperation to make this happen, however, and there is a lot to say favorably about the current governor and the General Assembly’s intent. Earlier this year, a Philadelphia LNG Export Task Force was formed with bipartisan support to come up with concrete aims and suggestions that will be captured in a final report expected later this year.

As my friend Jeff Kotula, president of the Washington County (near Pittsburgh) Chamber, major drilling source in the state, likes to say, about Pennsylvania, “The power to prosper is under our feet!” Only Texas has more natural gas than we do, and when you add our two states, only Saudi Arabia has more than the US.

Pipelines are valuable to get the drilled gas from its production areas in Ohio, West Virginia and Western Pennsylvania.  The west to east pipeline is invaluable.  In fact, pipelines are more efficient than trucks or railroad cars, which are also used to ship gas.  Additional pipeline capacity may be needed to move natural gas to the southeast region of Pennsylvania to ship overseas.

Having an LNG export facility will help address the need for energy as the Russian invasion of Ukraine continues and rebalancing of energy supplies occurs. Like the beginning of the shale revolution, we must have reasonable policies in place to encourage natural gas drilling and infrastructure for transporting exporting LNG from the southeast. Developing and shipping our resources will make Pennsylvania even more prosperous.

Pennsylvania’s central location long ago earned it the nickname “The Keystone State,” but it turns out our state is arguably America’s most critical nexus for energy production. With the nation’s largest natural gas reserves, a product of the massive Marcellus Shale formation with its estimated 410.3 trillion cubic feet of natural gas, Pennsylvania has become our country’s second-largest natural gas producer and the third-largest producer of electricity.

The energy we produce here matters, supplying families and businesses with energy in northeastern states such as Delaware, New Jersey, and West Virginia.

Our state also ranks fifth highest in the number of adults 65 and older, with one estimate projecting that soon one in five Pennsylvania residents will be 65 or older. Many in this age group live on fixed incomes, meaning they are vulnerable to high energy prices. It doesn’t have to be this way. Pennsylvania has the capacity to produce more energy – both renewables and fossil fuels – to help bring down energy prices, but a string of clumsy and outdated regulations stands in the way.

To take advantage of our energy opportunities, Pennsylvania badly needs permitting reform at the federal level, which is why U.S. Sen. Joe Manchin’s recent proposal to cut and streamline federal red tape is so timely.

Measures in the bill, many of which are aimed at the National Environmental Policy Act (NEPA), would help get energy infrastructure projects online faster, pumping homegrown energy into markets nationwide and helping lower prices for seniors and all consumers.

Congress should make adopting this bill, called the Building American Energy Security Act of 2023, a top priority.

Although NEPA was created in the 1970s with the good intention of safeguarding our environment, it has since turned into a major roadblock for critical American energy projects. Excessive regulations prevent states like Pennsylvania from fully contributing to our domestic energy supply, with the Constitution Pipeline serving as a perfect example.

Approved in 2014, the project was scheduled to be operational by 2015, but was derailed by a slew of regulatory setbacks and activist opposition. New York denied the project’s water permit in 2016 and the U.S. Supreme Court declined to grant an appeal, causing the project’s builder to officially cancel the pipeline in 2020.

Pipelines aren’t the projects being stalled. Renewable projects are also seeing serious delays because of NEPA, including the Rock Run Recreation Area wind farm that should have been under construction long ago, but has been held back by lengthy approval processes and reviews.

A problem nationwide, Pennsylvania alone has an estimated 443 solar projects awaiting approval, projects that could power 1.4 million homes. This includes the Swiftwater Solar farm in Monroe County, what could be the state’s largest solar farm, potentially generating enough power to serve 14,000 homes if not for NEPA rules allowing Citizens for Pennsylvania’s Future and the Brodhead Watershed Association to bury it in red tape. The Brookfield Solar Energy Center has met a similar fate, with activists weaponizing regulations to delay it.

The bottom line? The permitting approval process now in place under outdated NEPA regulations holds back Pennsylvania and other energy-rich areas from increasing America’s energy supply. Not only are ongoing projects delayed and discouraged, but potential developers hesitate to invest in projects when they see the complications others experience from burdensome federal regulations. This holds back job growth and pumps the brakes on an energy sector that is a major driver for Pennsylvania’s economy.

This threat should worry all policy makers. According to an analysis by PricewaterhouseCoopers, natural gas and oil supported over 423,000 Pennsylvania jobs. Jeopardizing a fossil fuel sector that in 2021 contributed more than $75 billion to the state’s economy is troubling enough, but permitting problems also holds back all types of energy projects. Permitting reform like the kind being pushed by Sen. Manchin (D-W.Va.) will help Pennsylvania’s oil and gas sector and will also boost the state’s ambitious plan to transition from fossil fuels in the future.

With the Pennsylvania Environmental Protection Department’s goals of reducing greenhouse gas emissions 26 percent by 2025 and 80 percent by 2050, we’ll need all the energy infrastructure we can get to succeed.

Getting more energy to market by reforming federal permitting processes will not only offer much-needed relief for senior citizens, but will provide the kind of energy security that America deserves and that our allies sorely need. Hopefully our lawmakers in Washington will follow Sen. Manchin’s lead and take the steps necessary to unleash America’s energy potential.

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Looking back at 2022, the most significant stories the Delaware Valley Journal covered involved the midterm election.

The primary campaign for governor and lieutenant governor on the Republican side brought out many candidates. In contrast, on the Democratic side, only Josh Shapiro ran for governor while a few Democrats contested for the lieutenant governor’s nomination. Many Republicans supported Shapiro, who ran as a moderate.

The race to replace retiring U.S. Sen. Pat Toomey (R) drew several candidates in both parties. Democrats fielded Lt. Gov. John Fetterman, who suffered a stroke during the campaign, Montgomery County Commissioner Val Arkoosh, Philadelphia state Rep. Malcolm Kenyatta, Philadelphia physician Kevin Baumlin, and western Pennsylvania Congressman Conor Lamb.

Among area Senate candidates, conservative author and commentator Kathy Barnette, Montgomery County businessman Jeff Bartos, Philadelphia lawyer George Bochetto, and Montgomery County lawyer Sean Gale all took part in a debate sponsored by the DVJournal that was broadcast on Pennsylvania Cable Network.

Celebrity Dr. Mehmet Oz and hedge fund CEO Dave McCormick duked it out, spending massive amounts on television ads. With former President Donald Trump’s endorsement, Oz prevailed by a slim margin, only to lose in the general election to Fetterman. Fetterman’s poor showing in a late October debate failed to move the needle since many voters had already cast their ballots via mail-in voting before seeing it.

The DVJournal also sponsored an online debate for Republican lieutenant governor candidates.

The wide field of men and one woman running for the Republican nomination for governor also debated several times. State Sen. Doug Mastriano (R-Franklin) came out on top in the primary despite a last-minute play by party leaders to back former Congressman Lou Barletta. Locally, Delaware County businessman Dave White made a strong showing and Chester County attorney Bill McSwain enjoyed the deep-pocket financial support of Commonwealth Partners Chamber of Entrepreneurs.

Shapiro, who spent millions on television commercials to paint Mastriano as an extremist, went on to handily win the governor’s race. Many believe redistricting in the Delaware Valley collar counties gave the Democrats a new advantage. Democrats defeated several incumbent Republicans, notably Todd Stephens in Montgomery County, Chris Quinn in Delaware County, and Todd Polinchock in Bucks County.

Other 2022 stories in the region included the saga of private utility companies buying up municipal sewer and water authorities. The DVJ has highlighted Pennsylvanians’ likely higher energy bills with Gov. Tom Wolf’s decision to join the Regional Greenhouse Gas Initiative (RGGI), despite opposition from the state legislature.  And the state’s crucial Marcellus Shale natural gas industry remains under assault from the Biden administration’s embrace of the Green New Deal.

This year, many other DVJournal articles focused on parents who are at war with “woke” school boards and school administrators who impose critical race theory (CRT) and gender-fluid ideology on their students and critical race theory (CRT) and gender-fluid ideology on their students as well as stocking school libraries with obscene books.

The Delaware Valley Journal also brought readers the saga of the state House versus progressive Philadelphia District Attorney Larry Krasner that culminated in the House voting to impeach Krasner for mishandling of his official duties, which they allege is a significant factor in the skyrocketing crime rate in the city. An impeachment trial for Krasner is set in the Senate for Jan. 18.

While crime has been a big issue for DVJournal’s 2022 reporting, inflation was also a hot topic with skyrocketing prices for gas, food, and other goods biting into Delaware Valley residents’ budgets.

Additionally, the U.S. Supreme Court’s Dobbs decision weighed on the election, causing a rise in Democratic voter registration and driving some women, particularly women in the Delaware Valley suburbs, to the polls. Conversely, the increase in arrests of pro-life activists by the Biden Department of Justice has stirred up passion on the other side of the abortion issue.

And the local reaction to the war in Ukraine is also a concern, with many Ukrainian immigrants living in the area. DVJournal also brought our readers letters from a Ukrainian mother about what it was like to live in that war-torn country.

Amid all the other news vying for attention, the DVJournal has kept its eye on the sad case of the death of Fanta Bility, the 8-year-old girl hit by a bullet fired by police officers. Three Sharon Hill officers pleaded guilty in that case, and a federal lawsuit brought by Bility’s family is pending.

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On this edition of the Delaware Valley Journal podcast, David Callahan, president of the Marcellus Shale Coalition talks about the benefits Pennsylvania and America get from the abundant, clean natural gas found in the Keystone State. DVJournal News Editor Linda Stein asked about PA’s different system of taxing natural gas compared to other states, and the revenue benefits from the energy sector for local governments.

And if you’re looking for a good-paying job in Pennsylvania — some with a six-figure salary — David Callahan knows who you should call!

Hosted by Michael Graham.

Pennsylvania’s tax on natural gas development generated $234 million in 2021, marking the second-largest amount ever returned to communities across the commonwealth, the Pennsylvania Public Utility Commission (PUC) said Friday.

The natural gas impact fee has generated $2.2 billion in the last decade.

Most of the money goes to county and local governments, however some state agencies also receive funds. The money funds infrastructure, emergency response and environmental programs.

“Generating $2.3 billion in essential funding for state and local governments across all 67 counties, Pennsylvania’s unique natural gas tax is an effective policy that yields impactful results,” Marcellus Shale Coalition president David Callahan said.

Some $234.4 million will be distributed to the state and counties in 2022, with all 67 counties receiving an allotment.

“The nearly 60 percent increase in this year’s distribution is directly related to heightened activity levels and the commodity price environment, underscoring the importance of policies that encourage domestic natural gas development, transportation and use. Our members continue to be focused on responsibly developing clean, abundant Pennsylvania natural gas, which is even more important today in keeping America and our allies’ energy secure,” Callahan said.

American Petroleum Institute Pennsylvania (API PA) Executive Director Stephanie Catarino Wissman said, “Every corner of the commonwealth has directly benefitted from Pennsylvania’s impact fee. This tax on natural gas wells has generated new revenue – totaling more than $2.2 billion over the past decade – for a wide variety of environmental, conservation, infrastructure, public safety and recreation projects. The report shows how natural gas production in Pennsylvania provides hundreds of millions annually in essential revenue while strengthening our economy.”

The impact fee revenue depends on the average annual price of natural gas on the New York Mercantile Exchange (NYMEX), which increased in 2021 compared to 2020, when the demand for natural gas declined due to the COVID-19 pandemic and a mild winter. Impact tax revenue reached $234 million in 2021, nearly 60 percent more than 2020, one of the highest collections since the impact tax was imposed ten years ago.

“As the demand for energy rebounds, policy certainty and long-term energy solutions are needed to help ensure that Americans have access to affordable and reliable energy,” said Wissman. “Pennsylvania’s abundant shale gas presents a unique opportunity to bolster domestic supply while funding critical infrastructure and environmental programs across the state, even in areas without natural gas development.”

This announcement comes when energy companies are under attack by the Biden administration over “excess” profits, a charge that economists dismiss.

Biden took steps to hamstring the energy companies at the onset of his administration, blocking the Keystone XL pipeline and signed executive orders to halt new oil and gas leases on public land, favoring green energy alternatives.

“Getting on a plane right now to go meet with a murderer to talk about the Saudis picking up their production, or writing a letter to the CEOs of Chevron and Exxon to say ‘super-duper large profits won’t be tolerated’ is simply inexcusable,” said economist David L. Bahnsen about Biden’s energy policy.

And while Biden has blamed high gasoline prices on Russian President Putin and the war in Ukraine, he recently pivoted to blame oil companies. But gasoline prices were at an average of $2.27 a gallon nationwide on Jan. 20, 2021 when Biden took office. On Jan. 3, a month before Putin invaded Ukraine, the national average gas price stood at $3.28 a gallon and as of Friday, the average price was $5 a gallon.

And it’s not just Biden.

Congresswoman Madeleine Dean (D-Montgomery) tweeted in March: “The price of crude oil is falling, and that should be reflected at the pump. We must be certain that energy companies are not using an unjust war to profit and price gouge.”

And in a let them eat cake moment, Transportation Secretary Pete Buttigieg said families who buy electric vehicles “never have to worry about gas prices again.”

Meanwhile, the sale price for an EV, on average, was $60,054 in February. That compared to $45,596 on average for all new vehicles, including electric ones, according to data from Edmonds.

Also, there’s the convenience factor. On a recent road trip, a Wall Street Journal reporter said she spent more time charging her rented EV than sleeping.

In a tweet that sums the situation up, Rep. Jim Jordan (R-Ohio) said, “The United States is blowing through its strategic oil reserves faster than expected. Gas is $5 a gallon nationally. And Joe Biden STILL refuses to drill domestically.”

The National Republican Senatorial Committee is making political hay for the 2022 midterms out of the high gas prices. They’re airing a new commercial targeting Democratic Nevada Sen. Catherine Cortez Masto and Democrat John Fetterman, who is running for the Senate, linking them to Biden and the high gas prices.

The ad says Fetterman backs Biden and the Green New Deal.

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While Texas and the other Gulf States often dominate the narrative around energy production, one of the most vital locations for domestic energy production lies in the mid-Atlantic region. Pennsylvania is home to an enormous amount of natural resources that are integral to the energy supply of our country. Despite being one of the top 10 states in natural gas, petroleum and electricity consumption, Pennsylvania is the third-largest net exporter of energy in the country. The Keystone State has also seen its gas reserves quadruple in the last 10 years, thanks to the increased development of the largest natural gas field in the U.S., the incredible wonder, Marcellus Shale.

The war in Ukraine has highlighted in neon the danger of reliance on foreign—and often hostile—nations for energy production and delivery. The Biden administration’s embargo on Russian oil, coal, and natural gas was a necessary decision in response to its invasion of Ukraine. The administration’s recent announcement that it wants to send more U.S. natural gas to Europe is the next logical step, but because of longstanding and misguided opposition to energy exports, that entire effort could be hampered by the lack of terminals for shipping the gas.

European Union leaders backed plans to buy gas jointly if the United States supplies it, but the lack of immediate infrastructure capacity (frankly, the ability) to fulfill our promise makes it all largely symbolic, unless we act now.

There is good news, however.  Learning of this strategic deficiency provides an opportunity to reinvest in America’s energy sector we should not waste. The legacy of pushing aside the oil and gas sector while simultaneously talking about the need for energy independence is inconsistent and doesn’t work.  We must seize the opportunity to strengthen our country’s economy and energy security.  Placing faith in Saudi Arabia or the UAE will not solve our energy dependence, but domestic production and infrastructure can do so.

Pennsylvania is poised for this chance. The Mariner East pipeline system currently transports natural gas liquids across the state, delivering energy across Pennsylvania and throughout the southeast. As of February 2022, Mariner East 2 and its parallel counterpart Mariner East 2x have completed the final step in the construction process and is now awaiting commissioning. These pipelines generated 9,500 construction related jobs per year over six years, as well as $122 millionin generated taxes for the commonwealth. Continued reliance on foreign energy resources going forward could never come close to producing the same amount of economic benefits as these domestically produced resources and pipelines have already proven attainable.

Pipelines are shown to be the safest, most technologically advanced method of transportation for petroleum and natural gas liquids. In order to continually verify the Mariner East pipeline system, there are certified controllers who monitor the pipeline 24 hours a day, seven days a week. In addition to these precautions, an automated system is also detects potential leaks and can shut down the pipeline automatically.

In January, two protesters temporarily halted the construction of the new pipelines when they trespassed on the property and locked themselves onto the equipment. Not only have the systems been proven to operate safely but trespassing on an active construction site increases the very risks these protestors want to limit. As foolish as these acts were then, they seem even more foolish now given the state of domestic and global affairs making increased production a strategic national security issue for all Americans and our allies.

Now is the time to invest in Pennsylvania’s natural resources and encourage new infrastructure projects as the Keystone State continued to be a driving force in our nation’s domestic energy production. The solution to our country’s energy crisis is not turning to adversarial nations abroad, nor in letting our allies rely on countries that oppose us. The answer is at home, and Pennsylvania should lead the way.

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After years of construction challenges and contentious political debates, the Mariner East 2 pipeline is now completed, Energy Transfer (ET) announced on Wednesday.

“In February 2022, construction of the final phase of the Mariner East project is complete, and commissioning is in progress which will bring our capacity to 350,000 to 375,000 barrels per day,” ET’s Co-Chief Executive Officer Tom Long announced during the company’s fourth-quarter 2021 earnings call.

“Energy Transfer’s Mariner East franchise will now include multiple pipelines across Pennsylvania connecting the prolific Marcellus/Utica Basins in the west to markets throughout the state and the broader region, including Energy Transfer’s Marcus Hook terminal on the East Coast,” Long said.

And the pipeline’s been partially operational for months. “For full-year 2021, natural gas liquids (NGL) volumes through the Mariner East system and our Marcus Hook terminal are up nearly 10 percent.”

The Dallas-based company, which operates more than 114,000 miles of pipelines across North America, reported a record amount of products through its network in 2o21, in part thanks to the Mariner East capacity already online.

“Now that the final phase is complete, it brings our capacity to 350,000 to 375,000 barrels per day,” said Long said.

The $2.5 billion, 350-mile project began in 2017, providing hundreds of jobs but also provoking political pushback from opponents of fossil fuels. While the pipeline runs across the entire state, the opposition has been particularly intense in the Delaware Valley.

Rep. Danielle Freil Otten (D-Chester County) launched her political career with a run for the state legislature on her opposition to the project. She tapped into her neighbors’ frustration with the hassles that came with construction. However, her opposition has continued even as the pipeline’s construction has drawn to a close.

As recently as last October, Friel Otten was holding press conferences calling for the shutdown of the entire pipeline project.

Her colleague Rep. Greg Vitali (D-Havertown) told DVJournal he’s still opposed. “It’s imperative that we, as a planet, reach carbon neutrality by midcentury in order to avoid the worst effects of climate change. Constructing new fossil fuel infrastructure such as pipelines make reaching carbon neutrality increasingly difficult.”

Workers in the energy sector, however, have a different view.

“This is the news our members have been waiting for,” said Jim Snell, business manager of the Steamfitters Local 420. “They’ve been laboring for years on this pipeline because they know even greater opportunities are possible at the Marcus Hook Industrial Complex and beyond once everything is up and running. The economic benefits of this project have been irrefutable, but the economic promise is even greater.”

The construction of the Mariner East pipelines is credited with an estimated $9.1 billion in tax revenue and economic impact to the state. It also provided thousands of union jobs.

Kurt Knaus, spokesperson for the Pennsylvania Energy Infrastructure Alliance, agreed. “Residents and businesses have long awaited the Mariner East project to come to fruition. Now, with its completion, Pennsylvania will soon be able to realize the full potential of this massive investment in energy infrastructure.

“The success of this project will be felt across the state for decades to come, and our communities will continue to benefit economically and environmentally from its sustained operation,” Knaus said.