Fueling the Future: Washington County’s Energy Sector Thrives

Jim Welty

Natural gas production from Marcellus Shale has made an incredible economic impact in Washington County. The Marcellus Shale Coalition (MSC), the leading trade association for companies engaged in all aspects of unconventional shale development, is Pennsylvania’s leading advocate for natural gas development, creating countless opportunities, achieving environmental excellence, and maximizing benefits to ensure the region’s secure energy future.

Jim Welty, who assumed the role of President of the MSC this year, presented the 2025 Energy Outlook during the Washington County: State of the Economy breakfast meeting.  

“If you are doing business in Marcellus Shale, you are probably a member of the MSC,” Welty said.  “We work hard to ensure that MSC members have higher compliance as we elevate the efficient, clean, and safe way we do things to shape the future of the Marcellus Shale industry.”

Pennsylvania is the second largest producer of natural gas in the United States, with nearly 11,500 producing wells covering 18 percent of the total natural gas production in the country. Approximately one third of that gas production comes from Washington and Greene Counties, which account for numerous opportunities and economic benefits for our region.

“The economic impact of natural gas in our region is tremendous,” Welty said. “In 2022 alone, the natural gas industry supported approximately 123,000 Pennsylvania jobs and generated more than $41 billion in economic activity for our region.” 

Additionally, Welty discussed the significant tax revenues generated by the natural gas industry. 

Welty said, “Natural gas tax revenues in 2023 reached $2.7 billion, which local and state governments can utilize to fund public services, improve infrastructure, education, and healthcare as well as other local community benefits.”

“It is also important to focus on the environmental impacts of natural gas in our region,” Welty said, noting the Marcellus Shale Effect which highlights the significant drop in carbon dioxide emissions from power generation of 46 percent over the past 20 years with the move from natural gas to coal.  

300+ attend 2025 Washington County State of the Economy presented by Community Bank

Welty said, “Thanks to natural gas electric generation, Pennsylvania emitted 58 million metric tons fewer of CO2 in 2023 compared to 2005.  Looking at this practically, this decrease is the equivalent of removing 12.5 million cars from the road for a year.”

In addition, the Marcellus Shale Effect is also responsible for enhancing air quality with the drastic drop in Volatile Organic Compounds, also attributed to the increased utilization of natural gas in power generation over the past twenty years.

“Ultimately, enhancing the environment is a benefit for public health,” Welty said.

Nitrogen oxide emissions are down 88 percent and sulfur oxide emissions are down 96 percent in the Pennsylvania electric generation sector, which equates to public health benefits of between $450 billion - $1.04 trillion for Pennsylvania residents.

“When it comes to the environment, we have a great story to tell,” Welty said. “Looking at these vast improvements over the past 20 years showcases why it is so important that our region continues to prioritize natural gas as a primary energy source.”

The consumer benefit is another key driver of the natural gas movement.  Natural gas prices for end-use customers have been down significantly over the past several years with the annual natural gas savings between $388 and $1,182 per household.

There are some important opportunities on the horizon for natural gas including hydrogen hubs, liquid natural gas, domestic manufacturing and electric generation. 

“The projected demand growth for liquid natural gas is exponential, especially on a global level,” Welty said. 

In terms of domestic manufacturing, the projected amount of private investment in the chemical industry is significant.

Welty said, “$208 billion in chemical industry investment is tied to shale gas with over 350 total projects, creating opportunities and is a powerful driver behind economic development.”

As we consider the great increase in the demand for electricity, natural gas can play a key role. 

“The demand for electricity heightens year on year at an extreme level. Without an increase in electric generation, there could potentially be a gap that could lead to rolling blackouts,” Welty said. “We at the Marcellus Shale Coalition feel strongly that the gap can be filled with natural gas production.”

Though the region is plentiful in natural gas, there are serious obstacles that the Marcellus Shale Coalition is working to overcome. 

Jim Welty

“Pricing is a concern,” Welty said.  “While low pricing for the consumer is a good thing, we find that producers in Pennsylvania are currently making over 20 percent less than producers outside of our state.”

Infrastructure is another major challenge for the energy industry in Pennsylvania.

Welty said, “We need more pipes in the ground.  Less infrastructure projects have been approved in recent years.  This needs to reverse so that we can get gas to market and continue to produce the great benefits for our economy and communities.”

On a state level, natural gas producers face challenges with permit delays, regulatory uncertainty, infrastructure constraints, and detrimental policies being proposed. 

Despite the challenges, Welty is hopeful that the federal shift will help bolster the natural gas movement that slowed with the last administration.

“The Marcellus Shale Coalition is a non-partisan organization,” Welty said.  “That being said, the new administration is behind policies that support growth in the energy sector, specifically with natural gas.”

Welty called attention to President Trump’s Executive Orders that promote natural gas, including Unleashing American Energy (EO 14154), Declaring a National Energy Emergency (EO 14156), Putting America First in International Environmental Agreements (EO 14162), all of which support and back the mission of the Marcellus Shale Coalition.  

“The changes in D.C. are a good thing in terms of positive momentum and movement in the right direction to get natural gas to market,” Welty said.  

Welty concluded by providing opportunities for the community and partners to get involved through shale advocacy. Western Pennsylvania is abundant in Marcellus Shale, but due to regulatory challenges and the promotion of alternative fuels, producers are not able to take full advantage of the opportunities we have in these powerful natural resources.   

Welty said, “We can continue to benefit Washington and Greene Counties with the tax revenue generated from natural gas. Support from the community, like our over 20-year partnership with Jeff Kotula and the Washington County Chamber of Commerce, can help promote common sense regulation and give producers the opportunity to capitalize on the impact Marcellus Shale makes economically and environmentally on our region.”