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GAS FACTS 2021

www.gowv.com

Message from Executive Director Charlie Burd This past year has been a challenging one. The pandemic has affected all of us, and our industry, much like every sector, is adapting. While many more challenges lie ahead, we also see opportunities. The oil and natural gas industry continues to be an economic cornerstone in West Virginia, and its potential is enormous. The Mountain State is the seventh largest U.S. natural gas producer, and we rank fourth in proven gas reserves. The natural gas industry is the state’s top-paying sector. The American Petroleum Institute (API) estimates that the natural gas and oil industry supports more than 71,000 jobs in West Virginia, and the estimated wages associated with these jobs are more than $3.5 billion. Our industry is responsible for more than $2.86 billion in state severance and property tax revenue since 2008. This annual publication, “Gas Facts,” offers the most recent production and economic impact data. It’s a snapshot of where we are today.

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Natural gas production increased more than 17% from 2018 to 2019. Oil production grew by more than 30%.

Top 10 Natural Gas Producers in West Virginia 2019 (MCF) Antero Resources Corporation

Northeast Natural Energy, LLC

SWN Production Company, LLC

Diversified Gas & Oil

EQT Production Company

CNX Gas Company, LLC (plus Consol Gas Co.)

907,829,158

272,604,650

258,879,130

HG Energy II Appalachia, LLC

109,764,557 Tug Hill Operating, LLC

89,021,823

86,666,446

82,322,122

66,143,347 Jay-Bee Oil & Gas, Inc.

62,546,634 Arsenal Resources, LLC

44,815,686

Severance tax collections in FY 2020 topped $160 million. Property tax contributions increased by more than 24% over 2019. Natural gas users – households, businesses, manufacturers – have saved $1.1 trillion since 2008 because natural gas production increased in the Appalachian Basin states of West Virginia, Ohio and Pennsylvania.

That doesn’t mean we don’t face glaring challenges. Commodity prices are decreasing. Prices will remain low for the foreseeable future. The economy will struggle as we work to recover from the pandemic’s toll. Burdensome lawsuits and imprudent policies have hindered pipeline projects and cut pipeline construction jobs in half. We must encourage the use of natural gas in West Virginia. We must adopt policies that make West Virginia competitive with its neighboring states. We must work to encourage new facilities that will use our products within the state and boost investment and employment. Downstream investment represents a huge economic multiplier. Natural gas producers and natural gas utilities cannot succeed alone. Companies in the state’s natural gas industry have come to see the strength in shared success. That’s part of the reason we created GOWV. We want a unified voice as we spread our message throughout the state and beyond. It’s truly a message of hope for the Mountain State. The data underlies the industry’s vital impact. I hope this information is helpful, and I encourage you to contact our office at 304.344.9867 if you have questions. Thank you.

Top 10 Oil Producers in West Virginia 2019 (barrels) SWN Production Company, LLC

EQT Production Company

Antero Resources Corporation

Jay-Bee Oil & Gas, Inc.

Chevron Appalachia, LLC

CNX Gas Company, LLC

Tug Hill Operating, LLC

HG Energy, LLC

HG Energy II Appalachia, LLC

Triad Hunter, LLC

7,079,645

3,572,580

1,875,319

1,773,387

1,009,994

564,074

358,767

175,888

122,304

97,067

2019 Employment & Wages

Jobs

Total Wages

Average Annual Wage

Crude Petroleum Extraction

162

$8,253,492

$50,957.92

Natural Gas Extraction

1,973

$188,144,697

$95,359.98

Drilling

1,437

$121,173,838

$84,324.24

Supporting Activities

2,908

$193,195,053

$66,435.72

Pipeline & Structure Construction

6,049

$642,176,469

$106,162.16

Field Machinery & Equipment Manufacturing

149

$10,299,915

$69,126.72

Industrial Gas Manufacturing

$5,008,205

$87,863.36

Electric Power Generation & Transmission

3,920

$412,800,426

$102,059.36

Natural Gas Distribution

735

$57,551,051

$78,300.56

Petroleum Stations & Terminals

348

$24,303,078

$69,836.52

Petroleum Product Wholesalers

296

$16,905,462

$57,113.16

Pipeline Transportation

868

$95,830,331

$110,403.80

Environmental Consulting

414

$28,538,050

$68,932.24

Total

19,316

$1,804,180,067

$93,403.40

Total Natural Gas Production (MCF)

Property Tax Contributions

2019: 2,155,757,252

2020: $162.7 Million

2018: 1,771,697,951

2019: $123.5 Million

2017: 1,514,277,709

2018: $88.6 Million

2016: 1,384,458,402

2017: $96.2 Million

2015: 1,315,247,819

2016: $134.8 Million

Total Oil Production (Barrels)

Oil & Gas Severance Tax Receipts

2019: 17,293,042

FY 2020: $125.7 Million

2018: 12,085,570

FY 2019: $200.8 Million

2017: 7,558,169

FY 2018: $138.8 Million

2016: 6,591,426

FY 2017: $133.1 Million

2015: 8,242,796

FY 2016: $134.4 Million

Data and information contained within “Gas Facts” is provided by the West Virginia Department of Environmental Protection, West Virginia State Tax Department, West Virginia State Treasurer’s Office and Workforce West Virginia.

County Information County

2019 Gas Production (MCF)

2019 Oil Production (Barrels)

2020 Property Tax Contributions

FY 2020 Severance Tax Contributions

Barbour

18,423,218

4,140

$420,400

$97,802

Berkeley

$345

$166,294

Boone

5,074,825

4,932

$648,064

$59,084

Braxton

1,394,667

2,426

$73,151

$28,654

Brooke

58,580,277

2,466,134

$8,976,345

$345,519

Cabell

719,620

8,467

$103,716

$156,823

Calhoun

2,554,793

60,122

$228,578

$24,034

Clay

1,606,392

63,828

$282,453

$23,278

Doddridge

409,541,468

976,781

$31,241,505

$1,627,634

Fayette

1,269,804

104

$192,477

$78,410

Gilmer

5,210,001

65,292

$247,994

$36,624

Grant

$1,229

$18,593

Greenbrier

$4,770

$56,641

Hampshire

$1,638

$38,256

Hancock

204

$10,620

$48,971

Hardy

$1,284

$22,389

Harrison

122,794,376

34,463

$7,430,536

$530,926

Jackson

3,553,925

11,254

$455,641

$60,737

Jefferson

49,467

$54

$85,403

Kanawha

11,668,944

49,467

$1,356,791

$354,918

Lewis

7,782,895

21,985

$924,930

$56,927

Lincoln

7,039,318

109,960

$1,121,175

$65,498

Logan

8,776,064

108

$902,034

$92,562

Marion

37,614,294

1,978

$1,368,120

$235,452

Marshall

275,510,599

5,059,286

$18,338,907

$1,281,933

Mason

365,141

6,016

$63,797

$45,229

McDowell

11,388,415

12,425

$1,077,006

$63,974

Mercer

802,902

$66,201

$102,501

Mineral

120

$1,777

$45,037

Mingo

10,368,244

5,125

$1,027,546

$83,010

Monongalia

95,955,795

1,788

$3,297,380

$522,614

Monroe

$912

$21,554

Morgan

$984

$28,002

Nicholas

658,582

159

$51,136

$44,423

Ohio

106,119,611

4,104,106

$12,984,274

$616,477

Pendleton

$6,209

$12,284

Pleasants

7,474,031

91,463

$884,925

$44,040

Pocahontas

$1,850

$13,919

Preston

1,461,471

$147,718

$59,160

Putnam

3,106,502

2,325

$385,052

$100,651

Raleigh

2,741,523

$301,310

$132,841

Randolph

750,150

$77,356

$49,840

Ritchie

248,903,342

1,212,490

$15,022,091

$1,018,370

Roane

2,417,443

85,399

$304,954

$35,989

Summers

6,515

$2,540

$22,258

Taylor

28,829,675

$1,281,674

$138,359

Tucker

144,215

$18,348

$11,955

Tyler

432,472,733

2,181,350

$32,979,950

$1,757,648

Upshur

11,040,368

1,625

$338,949

$81,426

Wayne

3,587,508

12,712

$556,029

$82,094

Webster

5,370

$25,522

$14,631

Wetzel

199,886,179

604,305

$16,440,492

$818,233

Wirt

389,542

14,994

$144,606

$11,125

Wood

175,721

12,738

$276,151

$139,916

Wyoming

7,590,465

3,121

$592,804

$65,806