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. Wilson Center stupidity I
  2. Help our vets
  3. Don’t call them ‘corporate deserters’
  4. Wilson Center stupidity II
  5. Why city’s unhappy
  6. Misinformation persists
  7. UMW fighting EPA regulations
  8. Zionist view
  9. Amendment levels playing field
  10. Focusing on curriculum
  11. People’s Pledge
Subscribe today! Click here for our subscription offers.