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Tuesday, May 25, 2010

Jon Bogle Calls Gas Study An Industry Scam


Scams have two parts, “you are going to be rich” and “all you have to do to be rich is”. Of course, if you actually do the second part you will end up much poorer.

Last summer the gas industry paid for a “study” An Emerging Giant which essentially laid out the gas industry scam. Pennsylvania was going to be rich and all we had to do, as a state, to be rich was not tax or regulate the gas industry.

An Emerging Giant vastly over hyped the amount of jobs, taxes, and economic development gas exploration will produce. It has and can be refuted by the Pennsylvania Budget and Policy Center, comparisons of statistics with the Pennsylvania Department of Labor and Industry, comparisons with studies from the Penn State Extension and most recently from an independent study by J. M. Barth and Associates.

Although funded by the gas industry’s umbrella organization, The Marcellus Shale Committee, An Emerging Giant acquired undeserved credibility by being portrayed as a Pennsylvania State University research paper.

It is a bit difficult to understand how this came about since:

Both principle authors had left Penn State employ before the document was published.

Neither author had a background in community economics, Robert Watson is an engineer and Tim Considine a fuel market economist.

The paper was not peer reviewed.

This industry financed piece, having the seal of a great research institution on its cover and on every page, has distorted the debate on gas exploration in Pennsylvania. It has been use to steamroll the legitimate issues of taxation and the environment and by doing so has caused measurable harm to Pennsylvania’s citizens.


Attached below is my testimony before the Pennsylvania House Finance Committee at Lycoming College last week which further explores this issue and provides links to supporting material.

Jon Bogle


Anonymous said...

Kind of funny how ones person's opinion categorizes an industry as a great scam. I guess you have only gone out of the area to take the time to testify against natural gas instead of traveling to the areas currently drilling to see that there are thousands of people working, the restaurants are full, the gas stations are busier than ever and local municipalities are making large amounts of money from taxes generated by both natural gas sales and worker's incomes.

Seems this article tries to sway individuals to the far left. After all, this is the author's opinion and argument.

I guess he would rather have everyone living off foreign oil and coal that pollutes all the water and emits twice the amount of contaminates when burned.

Anonymous said...

"Kind of funny how ones person's opinion categorizes an industry as a great scam".

No, there are a lot more of us out here!

I'll bet the majority of people believe that the Marcellus Gas Play and all it's "benefits" are highly exaggerated.

MOST of the workers are brought in from out of state, so much for hiring all us locals!

Yes, they are renting hotel/motel rooms and eat at restaurants, BUT once the well is drilled, they move on.

They displace the recreationalists tourists, and the tourists can keep coming back over and over forever!

Fossil fuels are an old technology! We need to develop Hydrogen, wind and solar to get us off of "foreign oil".

AND even some (or most?) of our locally produced Marcellus Gas is going to Canada, a FOREIGN COUNTRY!

So, it's not just about helping America become energy independent.


Not only is this "Marcellus play" a scam, and a sham, but it's only going to make a relatively few people really rich, while the rest of us, and our environment will suffer!

Kiss our water, air, and infrastructure quality good bye!

Anonymous said...

The facts speak for themselves.....
There was no peer review, no background of the two authors having any qualifications to write this paper in an area which neither is an expert.
Both are funded by the industry.
I also challenge your assessment that there are 'thousands' of people employed and that local municipalities are making money off of workers' incomes. Tell me, when Halliburton sends up 150 guys from Texas or Louisiana to frac a well, do they report that to the local authorities to tax them? Or do they have them up here for a week or two then send them back with no one the wiser? Another interesting thing to think about with crews from out of the area.....If it was your backyard or county, would you put volatile chemicals into the ground, knowing it could be your loved ones who get sick from it? Or is it that these guys come up here, do the dirty deeds then go home, where they can't be found to testify later or even be known?
How about all the hispanics that have been out and about measuring and laying markers for the testing being done? You think that they're locals that have been hiding here until they're employed by the gas companies? Think they're 'local' employees?
You think that these big gas companies are going to give a crap about what they do to our backyards, rather than make a fast buck? You're living in a fantasy world if you think they care about the people who live here. Look at the Gulf of Mexico at Loiusiana, Florida, Mississippi, Alabama.....
THAT'S how much they care about what they do to the environment and peoples' lives.
We can develop the Marcellus Shale without destroying the natural world, with everyone making a profit, but not if we let these big oil companies run over us. It's not going anywhere-there's no harm in slowing it down and being careful, making sure it's done right and safely.

Anonymous said...

Tired of hearing the nonsense about local jobs.

They are importing workers first of all, many of them are hispanic and being from Texas with our current immigration problems one can only imagine that some of these workers may be illegal aliens for starters.

Second, you argue that people around here will benefit from leases, but what you fail to mention is the amount of land here in Potter County that is owned by outsiders - folks in Pittsburgh and Philadelphia.

You really think they care what happens to our community? Hell no, they're gonna take the money and run - and leave us with the mess for decades.

Please don't quote false prosperity in other regions that have been drilled - that's a lie.


Anonymous said...

You are all sadly misguided.

I know people from Bradford, McKean, Tioga and Potter County that work in the natural gas industry. I guess these people don't exist in your world. And yes, I work in the natural gas industry. Instead of sitting around bitching about the fact that there aren't any jobs, I actually went out and got one.

Go to the local courthouse and check out the recorder's office and see how many local people are running title there. I have also seen trucks from local companies hauling natural gas equipment. I guess you all have blinders on when these are driving through town.

I have also seen the incomes landowners have made from the gas being extracted. This money is not going to Pittsburgh or Philadelphia. These landowners are local and are taxed locally.

I guess the millions of dollars spent in restaurants, gas stations and hotels don't account for anything either. If these were all empty, everyone would be bitching that there is not industry in the area.

I guess you just can't please anyone here. And you wonder why businesses are reluctant to move in to this area.

Oz said...

5:01:00 PM
Well said!

Brother Nature said...

5:01....are you going to fee lthe same about all of this "money" coming into the county when we are all drinking contaminated water? I agree with the poster that said we can get this gas out in a safer way...we just need to slow down. Yet..all of the big oil/gas companies are trying to drill as many wells as they can before someone realizes that it is a mistake and starts putting a halt to them.

Anonymous said...

@ 5:01
I don't disagree that the gas should be extracted and used..... not at all. But why does it have to be done all at once, before we know what we're doing and what effect it will have on our environment, water, wildlife?
Plus, there were a boatload of people in our area already employed by the gas/oil industry, so we already had a big pool of workers in that area. These people used the same infrastructures as the rest of us here do, but my Neon doesn't tear up the road like a million gallon tanker either.
I'm happy for the restaurants, gas stations and hotels that are once again busy. They provide a great service to the workers who are already here and those coming in and deserve to make a buck as much as anyone.
But why not listen to everyone who's talking, like the people who have lived through this elsewhere and know what's coming and in some cases already here? The industry does not have a good record of environmental concern. If you need any proof, look no further than right here in this area where many old well sites from the oil boom are now abandoned and had to paid for by the state or local governments to cap or plug. How many 'dead' streams are there still where there's no fish or any kind of life? And that's from a hundred years ago!
My opinion is we need to slow down, be careful, and do it right. Who could argue with that?

Anonymous said...

You're goofy if you think the majority of people making money from leasing to gas companies are 'locals'. Being a rig worker doesn't qualify you to tell everyone where the money's going, any more than pumping my own gas at the Quik Fill makes me an expert on petroleum.
Yes there are local people working in the fields and more are to come, good for them, but you're stupid if you don't think that as much money is going to Pittsburg and Philly as is staying here.
You're even dumber if you think that gas companies are 'reluctant to move into this area' because people are bitching about the changes occurring in our lives because of the new industry. The gas companies don't care if people are upset.

Anonymous said...

Poster 5:01
If Oz agrees with what you say, you're off to a wrong start.

Anonymous said...

I drink water every day from the area with the most natural gas activity and I am still doing quite well.

So aren't the people I work with from Texas, Oklahoma, Arkansas and Louisiana where these activities have been going on for years.

what's your next argument?????

Anonymous said...

Stick it 5:01 - your only argument for destroying this land - $$$$

Give me one other reason. People are bitching because they know of the dangers.

As for your opinion - you are a gas worker, no bias there...pfffft!

Anonymous said...

what happened to drill baby drill?

ah, reality happened. people got their head of out their political posteriors a bit too late and now realize this wasn't a (R) v (D) problem, this was a 'we need to save our local environment' problem

too late, you got played and now we all get to pay the price.

hope you enjoy higher than average cancer rates


i told you so x100

Anonymous said...

I am not a rig worker and I have been in the industry for quite a few years. And yes, I have see royalty checks in my position so once again your dimwitted argument does not hold water.

And all of the ignorant people that post childish insults who have probably never been on a rig, do not understand any part of the extraction process or spoken to one individual that has experience in the industry.

Sometimes blogs are not a great place to learn about a topic or hear a different opinion. Rather they are a place for small town folks that don't know that roads travel outside of the Potter County lines to pitch a non-educated well informed opinion.

Really said...

6:01:00 AM
Really? How brave of you! I tend to agree with Oz more often than not!