Potential economic impact study

Penn State Professor Timothy Kelsey has written a paper, 'Potential Economic Impacts of Marcellus Shale in Pennsylvania: Reflections on the Perryman Group Analysis from Texas.'

Kelsey's report refers to a study of the Barnett Shale in Texas by Texas-based economic consultants Perryman Group. The Perryman Group completed its study this year.


In his report, Kelsey writes that many sectors in the state's economy will benefit from natural gas exploration and drilling, with opportunities for a number of industries, including construction, retail and trade.

He says the two-fold economic challenge is:
1- Finding ways to help local businesses and workers compete for the new business opportunities arising from natural gas
2- Finding ways to encourage businesses, workers, and royalty owners to spend locally


Kelsey also states that local jurisdictions will face "higher service costs due to natural gas exploration."

He adds, "In other words, local jurisdictions with natural gas wells very likely will face higher demands for services and thus higher costs, and yet receive little new revenues to pay for those services."