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CHK’s Aubrey McClendon Hails the Marcellus, Natural Gas, Fracking

by Kenneth E. DuBose on September 15, 2011

Aubrey McClendon of Chesapeake spoke at a conference in Philadelphia last week and had several great statistics to share:

  • Marcellus natural gas development generated $11 billion in value-added regional gross domestic product last year. That number will rise to $13 billion in 2011 and reach $17 billion in 2015.
  • For our part, Chesapeake has 2.4 million acres under lease in the Marcellus and has already paid almost $2 billion in lease bonus and royalties to farmers, families and townships across Pennsylvania.
  • Direct and indirect employment from this economic boom has already surpassed 140,000 jobs. Chesapeake alone has about 2,100 employees in the Marcellus and about 1,700 of them were hired regionally. According to Penn State, further development of the Marcellus will support 216,000 jobs in 2015. That’s a jump of nearly 80,000 jobs in four years.
  • If you think this shale discovery and development is like hitting the lottery, you are right, especially if you happen to be the budget director for Pennsylvania. State and local taxes paid will total about $1.2 billion this year and are projected to reach $1.4 billion in 2012. That’s nearly double the anticipated tax proceeds from the Lottery Fund for the 2011-2012 state budget. And it’s one reason – along with the excellent leadership of Governor Corbett – that Pennsylvania was able to close a nearly $4 billion budget deficit without raising taxes on its citizens.
  • Nationally, the numbers only get bigger. Natural gas exploration and development supports about 3.5 million jobs across the country and with continued investment can easily add 500,000 more. By way of example, Chesapeake has added about 3,000 direct employees nationwide in the first eight months of 2011 alone. Our workforce now stands at 12,000 and we have openings for another 800 jobs with full benefits and average expected compensation of $75,000 annually.
  • But the benefits don’t stop there. Chesapeake has 1 million mineral owners in 16 states. To put that in perspective, about one in every 300 Americans has an oil and natural gas lease with Chesapeake. And they have been very well rewarded. We’ve paid out $9 billion in lease bonuses over the past 5 years, about $5 billion in royalties over the past 4 years, and another $2 billion in taxes over the past 5 years.
  • And every one of those numbers is going up daily. The lives of millions rest on us getting this issue right and utilizing this American Treasure.

Read the full press release at chk.com

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