DOE report highlights economic growth in Appalachian region
Friday, July 17, 2020
Low-cost energy from Appalachia’s natural gas shale plays has created a wide range of opportunities for growth in both the regional economy and U.S. economy, according to the U.S. Department of Energy’s recent report, The Appalachian Energy and Petrochemical Renaissance: An Examination of Economic Progress and Opportunities.
The three industries in the Appalachian region with the most to gain are the energy sector, including production and power generation; the petrochemical sector and the manufacturing sector.
The energy sector benefits from an 85% increase in U.S. natural gas production, which creates a low-cost fuel source.
The petrochemical sector could benefit from ethane production, which is 250,000 barrels per day. Currently, nearly all of that ethane is rejected or exported out of the Appalachian region. However, as production grows to an estimated 640,000 bpd by 2025, the region’s potential for petrochemical manufacturing would create more economic opportunities.
As a byproduct of both the natural gas producing ability and petrochemical potential, downstream manufacturing opportunities are expected to grow.
Learn more: U.S. Department of Energy > The Appalachian Energy and Petrochemical Renaissance
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Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.