University of Pittsburgh School of Business / by William E. Hefley, et al.
http://bit.ly/p6XZN0 (report)
http://www.washcochamber.com./news/article.php?nid=215&w (press release)
[KeystonePolitics.com post by Gregg Palmer] Even though the numbers are big, there are less fracking jobs than the industry predicted, and less wealth staying in Pennsylvania. It’s called “leaking” by economists – where money looks like it’s benefiting one area but is actually moving elsewhere.
The study “Economic Impacts of Marcellus Shale in Pennsylvania: Employment and Income in 2009,” bills itself as the first paper to look at not just the number of jobs and amount of revenue generated by drilling but also where that money is going and how quickly it’s being spent.
The jobs figure, as with previous studies, accounts for actual jobs created — front office jobs, drilling jobs, engineering jobs — as well as “induced” and “indirect” jobs, which are those not created by the industry itself but by the money the industry spreads around to local suppliers, hotels and restaurants, for example.
The study suggested that the industry generated around $3.1 billion in economic activity — $1.2 billion in income and $1.9 billion in “added value.”
Also of note was that locals who benefit from the gas play do not spend their lease and royalty checks immediately, meaning the money is not a direct, immediate benefit to the local economy. By surveying landowners in Bradford and Tioga counties, the study’s authors estimate that leaseholders save or invest about 55 percent of leasing proceeds and about 66 percent of royalty payments in the year they are received, instead of spending the money.
