Despite the challenges, oil and natural gas industry advocates see opportunities

Huntington: West Virginia Petroleum and Natural Gas Industry Defenders The COVID-19 outbreak was a challenging year, but it also created opportunities.

“The epidemic is affecting all of us and our industry is adapting to every sector,” said Charlie Berd, executive director of the Western Virginia Gas and Oil Association (GO-WV). With so many challenges ahead, we see opportunities.

Bourudd called the biggest challenge “an all-out attack on oil and gas.”

“It’s a concern,” he said. “America can and will return to power-free: more, the supremacy of power. But policies that have been in place since January put this in jeopardy. The closure of the West Virginia pipeline is costly for the production of natural gas outside the state, with jobs, investment, tax revenue at all levels and the confidence of investors.

According to Burd, many pipeline construction projects have been closed and labor costs have been affected.

“The rehabilitation of these works will be slow and will depend on the issuance or re-issuance of local licenses,” he said. Ridge counting is stable and a lot of excavation is taking place, so digging-related activities are returning.

Last week, the US Petroleum Institute (API) released an analysis of the “broad economic impact” on the oil and natural gas industry in West Virginia and highlighted the need for recovery after the state epidemic.

The study, developed by PricewaterhouseCoopers (PwC) and commissioned by API, is based on current government data and supports more than 82,000 jobs in the region’s economy by 2019.

“This was 32,300 and 49,700 indirect jobs or 9.2 percent of West Virginia’s total,” he said. “The industry has created an additional 1.5 jobs in the Western Virginia economy for every direct job.

The study provided $ 5.2 billion in labor revenue – $ 2.5 billion in direct and $ 2.7 billion indirectly – 11% of West Virginia or the state’s total labor income.

The natural gas industry in the mountainous region accounted for $ 11.2 billion, or 14.2% of the state’s gross domestic product.

“These are amazing numbers, and they show how important natural gas is to the West Virginia economy and to the nation,” Bold said. When the epidemic recovers, the United States relies on natural gas.

As post-epidemic recovery, economic activity, travel patterns and consumption increase, the US Energy Information Administration expects global oil and liquid fuel consumption to exceed 2019 levels by 2022.

“When the US economy recovers, the natural gas and oil industry will serve as the basis for long-term growth and prosperity in West Virginia,” said Mike Somers, president and CEO of API. As we guide the world in energy production, this study reinforces West Virginia’s economic outlook, and serves as a reminder of the dangers if policymakers restrict access to affordable, reliable energy and become more dependent on external resources.

Board hopes for the industry and will continue to grow oil and natural gas.

“I hope our leaders in Washington, D.C., come to a more reasonable conclusion that transportation, energy, military needs, medicine and pharmaceuticals, such as heat sources, oil and natural gas, are essential to our national security. For homes and businesses, cooking and food preparation, and finally all kinds of metals, plastics and petrochemicals. ”

Board says drilling technology continues to improve.

“Especially the ability to drill long horizontal lathes, improve hydraulic fracturing processes and use the latest well drilling technology,” he said. And they are all done with a strong focus on the environment Air, Water, and Land Disruption ”

According to EAA, in 2019, West Virginia was the sixth largest natural gas producer in the country, producing more than 2 trillion cubic feet.

In 2019, 5.9 billion cubic feet of natural gas (BCF / D) was produced in West Virginia and 0.6 BCF / D was allocated. A.D. In 2019, there is no other state that has more natural gas production than consumption.

The top 10 natural gas producers in the state were Antero Resources Corporation 907,829,158 MFF (thousand cubic feet). SWN Production Company LLC at 272,604,650 MCF; EQT Production Company at 258,879,130 ​​MF; HG Energy II Appalachia LLC at 109,764,557 MCF; Tug Hill Operating LLC at 89,021,823 MF; Northeast Natural Energy LLC at 86,666,446 MCF; Various gas and oil at 82,322,122 MCF; CNX Gas Company LLC (also Console Gas Company) at 66,143,347 MF; Jay-Bei Oil and Gas, Inc. at 62,546,634 MFF. And Arsenal Resources LLC at 44,815,686 MMF.

According to Berd, natural gas production increased by more than 17% between 2018 and 2019, and oil production increased by more than 30%.

The top 10 oil producers in the state were SWN production company LCL 7,079,645 barrels. Antero Resources Corporation with 3,572,580 barrels; Chevron Appalachia LLC with 1,875,319 barrels; Tug Hill Operating LLC with 1,773,387 barrels; HG Energy II Appalachia LLC with 1,009,994 barrels; EQT Production Company with 564,074 barrels; Jay-Bei Oil and Gas Inc. At 358,767 barrels; CNX Gas Company LLC with 175,888 barrels; HG Energy LLC with 122,304 barrels; And Triad Hunter LLC at 97,067 barrels.

According to the Board, the tax receipts for oil and gas cuts in the current fiscal year have reached $ 125 million. Most of the dismissal goes to the state, the remaining 75% goes to the gas-producing districts, and the remaining 25% is distributed to all woredas and municipalities throughout the state.

As the boom industry grew, it continued to have a significant impact on the region’s budget and local economies.

“Property tax contributions increased by more than 24% in 2019 to more than $ 162 million,” he said.

According to the board, West Virginia continues to see growth in the oil and natural gas industry, which includes annual production growth for more than a decade.

“Since 2008, our industry has been responsible for more than $ 2.86 billion in government dismissals and property taxes,” he said.

According to the West Virginia Oil and Natural Gas Association, Cable County produced 719,620 MF gas and 8,467 barrels of oil in the 2020 fiscal year, contributing $ 103,716 in property taxes and $ 156,823 in taxes. Kana State contributed 11,668,944 MFF gas and 49,467 barrels of oil, contributing $ 1,356,791 in property taxes and $ 354,918 in separation tax.

Wayne County produced 3,587,508 MCF gas and 12,712 barrels of oil and contributed $ 556,029 in property taxes to $ 82,094. Put Tantam County produced 3,106,502 MF of gas and 2,325 barrels of oil and contributed $ 385,052 in property taxes and $ 100,651 in eviction taxes.

Bonnie County contributed 5,074,825 MCF gas and 4,932 barrels of oil and contributed $ 648,064 in property taxes and $ 59,084 in evasion taxes. Logan County produced $ 8,776,064 MF gas and 108 barrels of oil, contributing $ 902,034 in property taxes and $ 92,562 in levies.

Lincoln County produced $ 7,039,318 MCF gas and 109,960 barrels of oil and contributed $ 1,121,175 in property taxes and $ 65,498 in levy taxes. Mingo County produced 10,368,244 MCF gas and 5,125 barrels of oil and contributed $ 1,027,546 in property taxes and $ 83,010 in levies.

But growth is not without its challenges.

“Commodity prices are falling. Prices will remain low for the future, ”said Burd. The economy struggles to cope with the epidemic. Heavy allegations and inappropriate policies have hampered pipeline projects and halved pipeline construction.

The Board of Governors says it should encourage the use of natural gas.

“We must pursue policies that make West Virginia competitive with its neighbors,” he said. We need to work to encourage new institutions in the state that use our products and increase investment and employment.

Board says lower basin investment represents huge economic growth.

“Natural gas producers and natural gas producers alone cannot succeed,” he said. “Companies in the state’s natural gas industry have come together to see the strength of their collective success. This is why we created GO-WV. We want to have a voice as we spread our message throughout our territory and beyond. It is indeed a message of hope for the mountainous region. ”

.

Leave a Comment