TribLIVE

| Opinion/The Review


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Don't kill drilling investment

Daily Photo Galleries

Tuesday, June 10, 2014, 9:00 p.m.
 

The proposal to enact a Pennsylvania severance tax on natural gas producers is very troubling, as I fear it could discourage new investment in this growing state industry. I would urge state House Speaker Sam Smith to take a lead role to make sure this tax is defeated.

A severance tax would undoubtably be a negative influence in terms of investment in energy development.

This proposal supposedly is designed to emulate West Virginia's severance tax. According to energyfactspa.com, West Virginia has seen a 20 percent increase in drilling activity over the last 10 years. But here in Pennsylvania — with no severance tax — our drilling starts have increased 400 percent in that time.

Since 2009, West Virginia has added two new drilling rigs; Pennsylvania has added 56, energyfactspa.com states.

I don't think this is a coincidence. Companies invest where they can maximize their return on the dollar and taxes are a huge part of that equation.

If we want to keep our gas fields working — and maintain the thousands of family wage jobs and billions of dollars in economic activity they represent — we must reject this severance tax plan.

Chad A. McCutcheon

Washington Township

The author is the spokesman for McCutcheon Enterprises Inc., a waste management contractor for the oil and gas industry.

 

 
 


Show commenting policy

Most-Read Letters

  1. Police deter crime
  2. Unpardonable & disheartening
  3. Fair funding for schools
  4. Job well done
  5. More Adam Lanzas
  6. A true conservationist
  7. GOP: Demonstrate leadership
  8. The real big spenders
  9. About convention idea
  10. Fight both Israel’s & America’s
  11. Gruber, then & now I
Subscribe today! Click here for our subscription offers.