Pennsylvania has long been an energy leader, thanks to a diverse portfolio of resources and a workforce renowned for its ingenuity, dedication and output. Our coal and steel powered the industrial revolution. We are home to the world’s first full-scale nuclear power plant and boast the second highest number of nuclear plants in the country. Pennsylvania is the second leading state in terms of electricity production. And, over the past several years, the development of the Marcellus shale has helped make America more energy independent, lowered utility bills across the board and brought jobs and economic opportunity to counties across the state.

Unfortunately, there are some who seek to discount this story by misrepresenting the number of jobs being created by the natural gas industry or who those jobs are going to. For many years, through both a Democratic and Republican administration, the state’s Department of Labor and Industry reported on the number of direct, indirect and induced jobs that have been attributable to the industry.  As of April 2015, that figure stood at nearly 250,000 – a calculation reached by career statisticians who, until recently, were left to use their own professional judgment and training in determining the total number of jobs.

But earlier this summer, 160,000 of those jobs vanished from the state’s reports. Not because of a sudden drop-off in drilling activity, but because the administration thought the numbers were “glaringly wrong” and directed staff to revise the numbers downward to 90,000.  Another report, this time conducted by a college professor, examined data from 2002 to 2011 and surmised that only half of the drilling jobs created during that time went to Pennsylvanians.

However, much has changed since 2011, particularly a significant increase in drilling activity that has led to the the need for more workers. A report from the University of Illinois found that Marcellus shale activity created more than 36,000 construction labor jobs during the recession that otherwise would not have existed. An industry survey found companies are now filling 83% of jobs with local workers. This is in part a result of trade schools and universities ramping up training programs to get Pennsylvanians working in one of the state’s fastest growing fields. Lackawanna College’s two year drilling program has a placement rate of 90 percent. Penn College of Technology in Williamsport reported a 98 percent placement rate earlier this year for its specialty program. These are well-paying jobs too: core drilling jobs pay an average of $90,000, and some welders reported making $150,000 last year. This is a story that simply cannot be discounted or ignored.

In southeast Pennsylvania, far from the drilling fields, workers connected to the oil and gas industry are finding new and continued opportunities thanks to domestic production. The Philadelphia and Trainer refineries, once slated for retirement, are now back in business. Production and output are strong, and  many skilled workers in the trades are making six-figures including overtime. New ownership at a third refinery in the southeast corner of the commonwealth, at Marcus Hook, is planning an economic revival by using natural gas liquids produced from the Marcellus shale. These are but a few stories of the $138 billion in new capital investment being proposed by the chemical, manufacturing and refining industry across America thanks to our oil and gas resources.

There are, however, some headwinds facing the industry. We will never fully capitalize on this opportunity until additional pipeline infrastructure is built and new markets are developed. Perpetually low commodity prices have led to cutbacks and a reduction in the number of drilling rigs in the state. The looming threat of another tax on the Marcellus shale increased regulatory mandates will only exacerbate this trend and reverse the significant economic progress Pennsylvania has made thanks to this industry.

Academic and government reports will never fully capture what a well-paying job means to a Pennsylvania family – or what it means to lose it. Leaders in Harrisburg stand at a crossroads, and for the sake of the tens of thousands of Pennsylvanians employed in the energy industry and related fields, let’s hope they choose to keep the current competitive tax structure in place.

The Pennsylvania Chamber of Business and Industry is the state’s largest broad-based business advocacy association.

Gene Barr

Gene Barr is the President and CEO of the Pennsylvania Chamber of Business and Industry, the state's largest broad-based business advocacy association.