Beyond the Boom: Ensuring Adequate Payment for Mineral Wealth Extraction

Examines Ohio's severance tax rate and receipts on gas and oil extraction compared with other states, oil and gas production's costs to the state, and potential impact of a higher tax. Recommends raising the tax and creating a severance tax trust fund

The Impact of Marcellus Shale Development on Hotel Revenues in Pennsylvania

New technologies have allowed for new drilling in oil and gas deposits throughout the world. In the Northeast United States, the Marcellus Shale formation has been one of the most active regions for new wells. This new drilling activity has created a visible economic impact to communities in and around the drilling sites. The increase in hotel activity metrics such as occupancy percentage and average daily rate has been noted but there has been no research that determines the total revenue impact of the drilling activity. This research does not attempt to factor in the social and environmental costs that have been discussed with the new drilling activities. This research studied the total revenue impact of the Marcellus Shale regions in the state of Pennsylvania. The state of Pennsylvania was chosen for this study as the state maintains detailed records on well development by county, while other states do not provide such data. Based on determinations made by a leading Marcellus Outreach Center, five distinct drilling “regions” were identified. Smith Travel Research provided hotel performance data. The performance indicators (demand, average daily rate, total revenue) of the hotels in the five drilling regions were tracked against the U.S. hotel industry performance indicators for comparable time periods. It was determined that approximately $685 million of hotel revenue has been generated by Marcellus Shale drilling activities. The incremental revenue was generated by both demand and average daily rate increases. This is a significant economic benefit to the drilling regions with increased tax collections for the taxing agencies and consumer spending by those visiting the region for drilling related activity. Approximately 65 new hotels were added in the drilling regions beyond what could have been expected with no drilling based on U.S. hotel industry supply trends. These new hotels are, almost exclusively, select-service, branded hotels. The average room size was 82 rooms, with an average employee count of 25 employees, the drilling has accounted for approximately 1,600 new hotel jobs plus whatever new jobs were added based on the increased occupancy levels of existing hotels. The cautionary note in the findings is that the 2012 data suggests that the demand may be stabilizing or decreasing. Demand in 2012 was flat at 0.0 but occupancy was down by 4.1% due to the increased supply. While the regions are still experiencing increased hotel revenues compared to a “non-Marcellus” scenario, the increase in hotel supply is making for a more challenging competitive environment for individual hotels. The finding suggest that new hotel development should begin early in a drilling environment and that hotels should have a long-term viability strategy as the long-term demand may stabilize or decrease. Sixty-two of the 65 new hotels are branded, 60 of those are select- service. Existing older and non-branded hotels will face a tougher operating environment and should have an exit strategy. Of the 14 hotels that closed in the drilling regions between 2006- 2012, 9 were independents and the average age of all 14 hotels was over 38 years old

Natural Resources a Curse or a Blessing: Evidence from Williston, ND

The aim of this study was to test the implications of natural resource abundance for regional economic development for Williston, ND. Williston emerged as a natural choice for this study due to the recent crude oil production boom experienced by it post 2007. The implications of natural resource abundance on regional development are rather mixed in literature. While one strand of literature believes that natural resource industries often create forward linkages which supplement regional development, the other strand believes that it impedes regional development by diverting local resources. The prime objective of this study is to test these two strands of literature by examining the trends in production, local business activities and employment in Williston from 2000 to 2011. This study specifically looks to answer if the oil boom has managed to establish forward linkages by creating new local industries and businesses, generating employment as well as by developing new infrastructure projects post 2007.https://digitalcommons.morris.umn.edu/urs_2013/1004/thumbnail.jp

Taxing Fracking: Proposals for Ohio's Severance Tax

Outlines the proposal to raise the state's severance tax on oil and gas extracted by fracking and return most of the revenues in income tax cuts, concerns with the proposal, and recommendations for using the severance tax to restore jobs and services

The Shale Gas Revolution: US and EU Policy and Research Agendas.

The “shale gas revolution” raises a host of questions for policy makers and researchers on both sides of the Atlantic. We provide a brief overview of the regulatory environment as it relates to hydraulic fracturing for natural gas in the United States and the European Union. We then pose a set of open questions, which we believe should shape policy and research agendas surrounding shale gas wherever the development of this resource is being pursued or considered

The Role of Regional Science in Shale Energy Development

The most recent boom in fossil fuel extraction is noteworthy through its extensive use of advanced technologies called hydraulic fracturing and horizontal drilling. The papers in this issue demonstrate the role that regional science can and should play in guiding policy, usefully complementing research from physical science and engineering disciplines that focuses on the important geological and environmental consequences of shale energy production. Furthermore, we underscore the need for expanding the traditional regional science focus in policy discussions pertaining to shale energy

Am J Ind Med

The oil and gas extraction industry is rapidly growing due to horizontal drilling and high volume hydraulic fracturing (HVHF). This growth has provided new jobs and economic stimulus. The industry occupational fatality rate is 2.5 times higher than the construction industry and 7 times higher than general industry; however injury rates are lower than the construction industry, suggesting injuries are not being reported. Some workers are exposed to crystalline silica at hazardous levels, above occupational health standards. Other hazards (particulate, benzene, noise, radiation) exist. In this article, we review occupational fatality and injury rate data; discuss research looking at root causes of fatal injuries and hazardous exposures; review interventions aimed at improving occupational health and safety; and discuss information gaps and areas of needed research. We also describe Wyoming efforts to improve occupational safety in this industry, as a case example.20142015-06-16T00:00:00ZT42 OH009229/OH/NIOSH CDC HHS/United States24634090PMC4469339765

Shale gas and regional economic development: Enhancing local economic impact

The expansion of shale gas extraction has been supported by the UK national government because of predicted economic benefits. However, what is largely missing from this analysis is an estimation of local and regional economic impact. This paper seeks to contribute to the deliberations of local stakeholders by outlining current estimates of local multiplier effects and indicating where policy initiatives could be targeted to maximise local economy benefit. The advocates a reorientation of public policy support for the shale gas industry to focus upon the development of educational partnerships, enhancing skills development and attracting inward investment through spillover effects, thereby enhancing local economic impact