Consumer Energy Alliance Report: Virginians Saved Almost $11 Billion in 10 Years Thanks to Low Priced Natural Gas

Consumer Energy Alliance Report: Virginians Saved Almost $11 Billion in 10 Years Thanks to Low Priced Natural Gas

WILLIAMSBURG, Va.–(BUSINESS WIRE)–Thanks to increased production and safer, state-of-the-art technologies – which together have decreased the price of natural gas — Virginians saved almost $11 billion between 2006 and 2016, according to a state report released by Consumer Energy Alliance (CEA), with calculations developed by Orion Strategies.

Households saved over $4.4 billion and commercial and industrial users saved more than $6.4 billion, according to the report titled, “Affordable Natural Gas Saves Virginia’s Energy Consumers Billions.” The report is being released today at the Virginia Competitiveness Forum in Williamsburg.

The analysis details how the national and local energy revolution has helped local energy consumers increase disposable income, job growth, and economic investment while also revitalizing communities. It also details how the rapid rise in production from the Marcellus shale fields have resulted in increased supplies arriving from Pennsylvania, with additional pipeline expansions in the Marcellus being planned to help meet Virginia’s growing natural gas demand.

Highlights from the report include:

  • Between 2009 and 2016, the commonwealth’s industrial sector increased its use of natural gas by almost 55 percent.
  • Virginia has more than 5,000 manufacturing facilities that employ more than 200,000 residents. These facilities contribute $42 billion to Virginia’s gross state product and account for over 80 percent of the commonwealth’s goods exports to the global economy.
  • The oil and natural gas industry contributed 125,500 jobs and accounted for nearly $7 billion in wages for the Old Dominion in 2015.
  • In total, oil and gas provided almost $12 billion to the commonwealth in value added economic impact, including employee compensation, proprietors’ income, income to capital owners from property and indirect business taxes.
  • In 2017, the estimated market value of crude oil produced within Virginia was $341,000 while the estimated market value of natural gas produced was $296 million.
  • The commonwealth consumes far more natural gas than it produces. Electric power generation is the largest consumer of natural gas in Virginia. Half of the commonwealth’s power generation relies on natural gas.
  • One-third of Virginia’s households use natural gas for home heating.

“This report highlights how Virginia’s families and businesses who use energy benefit from maintaining an all-of-the-above energy strategy that continues to emphasize the growth of all resources as well as the expansion of all energy infrastructure here, and nationally,” CEA’s Executive Vice President Michael Whatley said. “For the nearly 8.5 million residents who call Virginia home, it is important that they understand how supporting productive energy policies can help lower energy costs for cash-strapped families and small businesses while also providing stronger opportunities for manufacturers and businesses to create jobs for those who need it most.”

“Virginia’s extensive rail, highway, and port infrastructure networks have created a competitive advantage for Virginia’s manufacturing sector,” said Brett Vassey, President and CEO of VMA. “That’s why it remains imperative that we continue to champion the values of affordable, reliable and secure energy here in the commonwealth so that we can capitalize on these resources and become the most competitive location in the U.S. for manufacturing growth.”

Whatley added: “Unfortunately, Virginia’s pipeline network and potential future access to valuable onshore and offshore energy supplies are threatened by anti-development activists working to eliminate the production and transportation of safe, affordable sources of energy. These protesters lack solutions to help meet basic demand for families and their efforts actually threaten our environmental goals. CEA strongly encourages Virginia’s elected leaders to continue their support for energy solutions which will ensure affordable, reliable energy for everyone.”

To view the report, click here.