GAS FACTS
www.gowv.com
Message from GO-WV Executive Director Charlie Burd West Virginia’s energy abundance is cornerstone to the economic strength and security of our state. In addition to making up more than $11 billion (~14%) of the state’s gross domestic product, having a flexible, readily available energy source has fueled manufacturing and attracted broad business growth that will drive prosperity at home. America’s 5th largest energy producer, West Virginia produced 2.7 trillion cubic feet (tcf) of natural gas and 17.9 million barrels (bbl) of oil in 2021. That means in less than a month, enough natural gas is produced in WV to meet the state’s home energy needs for an entire year! The 6% annual increase in gas production led to a 10% rise in state severance and local property taxes collected from West Virginia’s natural gas and oil operators, which totaled $319 million during Fiscal Year 2021 (FY 2021), according to West Virginia Department of Revenue data. Since 2008, the industry has contributed more than $3 billion in state severance and property tax revenue. Three quarters into the current fiscal year, state severance tax collections of coal, oil and gas were nearly $560 million, a majority ($358 million) of which came from natural gas (including gas liquids and coalbed methane) and oil collections. In addition to contributing to the State General Revenue Fund, a portion of monies are directed to local governments where development and other activity occurs. Furthermore, property taxes (or ad valorem) support local school districts with essential funding for enhanced internet access, building upgrades, and other education initiatives. The growth of this industry over the years has
created significant family-sustaining jobs for West Virginians. More than 82,000 direct and indirect jobs are connected to the natural gas and oil sector, according to PricewaterhouseCoopers (PwC), with more than $5.2 billion added to total labor income (11% of WV’s total labor income). PwC also estimates an additional 1.5 jobs are generated elsewhere in the state economy for each direct job in the natural gas and oil industry. And when it comes to giving back, GO-WV members are out front driving positive social, environmental, and community programs that support economic growth, healthy lifestyles, and prosperity across the Mountain State. Moreover, the innovative spirit inherent to West Virginia’s natural gas and oil developers means we’re equipped with the tools necessary to pave our path to a lower carbon future. Yet these positive impacts will only be maintained so long as we advocate for the continued production, transportation, and use of our bountiful energy resources. Commonsense policies at the state and federal level are essential to maintaining competitiveness – particularly as West Virginia vies for large-scale investments in the downstream side of the energy and manufacturing supply chain. In fact, it’s estimated imprudent policies and lawsuits have hindered pipeline development in this Basin to the point where pipeline construction jobs have been cut in half. This reinforces the importance of good-governance to unleash the power of the market and our ability to respond. We created a message of hope for the Mountain State when GO-WV launched at the end of 2020, and through collaboration and a recognition from elected officials – in Charleston and in Washington, D.C. – on the essential nature of American natural gas and oil, we will lead West Virginia’s energy, manufacturing, and economic revival. GO-WV wants to share Gas Facts with the public. Please call us at 304.344.9867 with any questions. Thank you.
Oil & Gas Severance Tax Receipts
Property Tax Contributions
FY 2021: $164.5 Million
2021: $155.0 Million
FY 2020: $125.7 Million
2020: $162.7 Million
FY 2019: $200.8 Million
2019: $123.4 Million
FY 2018: $138.8 Million
2018: $88.6 Million
FY 2017: $133.1 Million
2017: $96.2 Million
Sources for “Gas Facts” data: WV Dept. of Environmental Protection, WV State Tax Dept., WV State Treasurer’s Office and Workforce WV.