Marcellus Shale gas might be headed overseas
PITTSBURGH — Drilling companies rapidly expanding their U.S. operations in places such as Pennsylvania’s vast Marcellus Shale formation repeatedly tout they are providing American jobs and securing the nation’s energy future.
Yet, a Pittsburgh newspaper examination found foreign companies are buying significant shares of these drilling projects and making plans for facilities to liquify and ship more of that natural gas overseas.
A leading player in the natural gas grab is China, whose thirst for energy to fuel its industrial explosion is growing rapidly. Others include the governments of South Korea and India, and companies in Great Britain, the Netherlands, Norway, Japan and Australia.
“They’re going to come in, extract all this stuff for next-to-nothing, and make global profits off it,” said Pittsburgh Councilman Doug Shields. “This is beads for Manhattan, in a global sense.”
Much of the salesmanship to promote gas exploration nationwide, and especially in Pennsylvania, pressed the point that the country must become less dependent upon foreign energy sources.
It avoided discussion about exporting that gas overseas.
“The implications are great,” said Paul Cicio, president of Industrial Energy Consumers of America, which represents large U.S. manufacturers. He believes exporting newfound natural gas is a strategic blunder that will cost American manufacturing jobs by hiking the price of gas here.
“This is not good for our country,” he said.
Bill Newman, a New York lawyer who often represents foreign clients, sees things differently. “We have a shortage of capital in this country,” he said. “In the 19th century, the railroads almost broke us.” He said he believes foreign investment in the United States can work like it did in supporting the railroads.
Patrick Henderson, senior adviser on energy matters to Gov. Tom Corbett, said the possible export of Marcellus gas overseas “doesn’t hurt the argument that we need to develop the resource.” He said it underscores that the United States needs to develop technology that uses natural gas.
“Exporting is generally a good thing, though our first choice would be to use it here,” he said. Corbett doesn’t believe Pennsylvania should tax Marcellus Shale gas aimed for overseas because it would be difficult “to craft a tax” based on where the gas is used, he said.
