Pennsylvania Marcellus Shale economics

Must have been last year that the gas industry paid Watson & peers of Penn State to do their now famous economic projections for Marcellus Shale. Jobs, money and glowing economics, with incredible numbers in every category. Those dazzling numbers don't seem to be showing up. Two recent reports create some interesting indicators of this purported Pennsylvania boon. The first report involves jobs, or conversely, the lack of jobs. Pennsylvania now has the highest unemployment rate it has seen in 25 years, and we are already 5 years into the Marcellus Gas Rush. The second recent report indicates that for the first time in nearly 20 years, the population around Pittsburgh has increased. This leads us to the quick take that while Marcellus Shale drilling may be creating a few jobs, the bulk of them are being filled by gas industry workers from out of state. The glossy economic reports say that jobs are going to be created, but it didn't finish by saying the jobs would be filled by workers coming from Texas, Oklahoma, Wyoming and Colorado. (Oh, and those illegal aliens found recently on a West Virginia drilling site) It's also safe to guess by all the license plates that haven't been changed-over to Pennsylvania plates that most of those payroll taxes are going back to those states, not into Pennsylvania coffers. Drilling isn't a labor intensive business to begin with, especially once you get past the trucking end of things. It will be interesting to see these commissioned study groups try to validate their glowing results someday. A great salesman once said, "Sell the sizzle, not the steak." That part has been done, but the numbers won't lie.
http://greenmanmarcellus.blogspot.com/2010/03/pennsylvania-marcellus-shale-economics.html