Pipelines Deliver Access to Natural Gas in a Safe and Environmentally Protective Way
Supreme Court Decision is a Victory for Gas Infrastructure
WASHINGTON – As the Supreme Court released its decision to uphold a key permit for the Atlantic Coast Pipeline (ACP), the American Exploration and Production Council (AXPC) underscored how access to affordable, clean natural gas provides economic benefits to our country:
“The Supreme Court’s decision is an important step in completing the Atlantic Coast Pipeline. The ACP, and pipelines like it across the nation, provide the safe, reliable infrastructure needed to promote the US shale revolution, which powers our economy, supports good jobs and strengthens our national security,” said AXPC CEO Anne Bradbury.
Domestic natural gas is increasingly critical for generating the electricity that powers our lives – in homes, schools, and hospitals – and as a feedstock for products used around the world. Pipelines are proven to deliver natural gas in a safe and environmentally protective way from producers to customers. The Atlantic Coast Pipeline can provide more American families and businesses with access to clean, reliable natural gas.
Clean natural gas largely contributed to U.S. CO2 emissions being at the lowest levels in a generation. Drivers of growth in natural gas production include technological advancements, new investments, and regulations encouraging its use.
Marcellus and Utica Basins are Top Natural Gas Producing Regions
Production of natural gas has shifted in the past decade from the Gulf of Mexico toward onshore shale gas regions, especially in the Marcellus and Utica Basins, where many of AXPC members operate, including: Cabot Oil & Gas, Chesapeake, EOG Resources, EQT, Southwestern, and XTO.
New infrastructure is required to transport natural gas from Marcellus and Utica to locations where natural gas is in high demand – like families and businesses through utility providers, and petrochemical facilities who look to natural gas as a reliable, low-cost energy source for their existing and planned operations.
Economic Benefits of the Atlantic Coast Pipeline
Across West Virginia, Virginia, and North Carolina, the Atlantic Coast Pipeline’s construction alone is creating 17,000 new jobs and $2.7 billion in economic activity and generating $28 million in annual property tax revenue for local governments.[1]
This means that in addition to jobs in construction, hospitality, and restaurants – communities across the region will be able to make new investments in their schools, roads, public safety, and other emergency services. And, once operational, the Atlantic Coast Pipeline will save families and businesses an estimated millions each year on their energy costs, which is especially important during our economic recovery.[2]
An economic study by Chmura Economics & Analytics says that the project would generate $479 million for West Virginia, $1.4 billion for Virginia and $680 million for North Carolina. Data from Work Force West Virginia shows that natural gas pipeline construction jobs grew by 434 percent between the first quarter of 2017 and the second quarter of 2018, bolstering West Virginia’s economy and the state budget.
According to a report prepared for The Interstate Natural Gas Association of America (INGAA) Foundation, the Northeast could see a total investment of $117 billion to $148 billion, or about 17 percent of total U.S. oil and gas infrastructure investment developing and transporting natural gas in the Marcellus and Utica regions – but that this development depends partly on regulatory approvals.[3]
Support Across the U.S. for Natural Gas
Production of natural gas is expected to grow over time, as the demand for natural gas continues to grow across the country. According to the U.S. Department of Energy, gas demand for power generation grew from 15.8 billion cubic feet per day in 2005 to 22.2 billion cubic feet per day in 2013.[4] And, growing markets could spur significantly more growth – up to 130 billion cubic feet per day by 2035.[5] Between 29,000 and 62,000 miles of new pipeline is needed over the next 25 years to accommodate the expected demand.[6]
About the American Exploration and Production Council:
AXPC is a national trade association representing the largest independent oil and natural gas exploration and production companies in the United States. We lead the world in the cleanest and safest onshore production of oil and gas, while supporting millions of Americans in high-paying jobs and investing a wealth of resources in our communities. Learn more at https://axpc.org/
[1] “Jobs and Economic Growth” Atlantic Coast Pipeline https://atlanticcoastpipeline.com/about/benefits.aspx
[2] ibid
[3] “North America Midstream Infrastructure through 2035” (page 56, June 2018) Prepared for The INGAA Foundation by ICF https://www.ingaa.org/File.aspx?id=34658.
[4] Appendix B: Natural Gas (Highlights, page 1. 2015) U.S. Department of Energy https://www.energy.gov/sites/prod/files/2015/06/f22/Appendix%20B-%20Natural%20Gas_1.pdf
[5] ibid (Exhibit 12)
[6] “Supreme Court Hears Arguments Over Building $7.5B Gas Pipeline Under Appalachian Trail,” by: Ken Silverstein. Forbes (February 26, 2020). https://www.forbes.com/sites/kensilverstein/2020/02/26/atlantic-coast-pipeline-mirrors-keystone-xls-path/#7744af174bab