Governors extend Tri-State Shale Coalition agreement through 2021

The governors of Ohio, Pennsylvania, and West Virginia agreed to extend a 2015 agreement to cooperate on developing shale oil and gas resources in their states through Dec. 31, 2021. Their Mar. 21 action continues an effort to show the Appalachian basin’s shared goal to assure the gas will attract manufacturers to the region instead of simply being exported.

The governors of Ohio, Pennsylvania, and West Virginia agreed to extend a 2015 agreement to cooperate on developing shale oil and gas resources in their states through Dec. 31, 2021. Their Mar. 21 action continues an effort to show the Appalachian basin’s shared goal to assure the gas will attract manufacturers to the region instead of simply being exported, Pennsylvania Gov. Tom Wolf (D) said in Harrisburg.

“The shale gas resources in the Appalachian basin represent enormous economic opportunity not just for Pennsylvania, but for the region as a whole,” Wolf said. “We have a unique proposition: abundant and low-cost feedstock for petrochemical and plastics manufacturing, all within the same geographic footprint.” Ohio’s John R. Kasich (R) and West Virginia’s James C. Justice (R) also signed the extension.

Under the Tri-State Shale Coalition agreement, the states work together on issues in infrastructure, workforce development, and marketing to better harness the potential of Appalachian gas and natural gas liquids, Justice said. The coalition identifies key areas for cooperation to help the gas industry grow, and holds annual summits where government, education, and industry leaders share information and best practices, he noted.

Kasich pointed out that since becoming part of the coalition in 2015, horizontal shale wells in Ohio have produced an average 19.2 million bbl of oil and 1.36 tcf of gas—increases of 275.5% and 619.4%, respectively, from the 3-year average preceding the agreement. Production of gas has increased each consecutive year since 2014, he added.

“Instead of competing, our three states are working together to promote the region as a center for shale-related manufacturing,” said Justice.

Contact Nick Snow at nicks@pennwell.com.

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