West Virginia Executive Spring 2022 | Page 83

Untapped Opportunities

Downstream Utilization of Natural Gas

JEAN HARDIMAN
As West Virginia continues its ever-pressing quest to build its economy and see it thrive , some are heralding untapped opportunities literally just beneath the state ’ s surface . The natural gas in the Marcellus Shale offers potential in multiple industries , if the path toward utilizing it fully can be cleared , some industry experts say .
Already , West Virginia ’ s natural gas and oil industry supported 82,000 jobs across the state economy in 2019 , according to a report last year from the American Petroleum Institute , generating $ 11.2 billion toward the state ’ s gross domestic product . The U . S . Energy Information Administration ranked West Virginia fifth nationally in natural gas production .
However , there are missed opportunities that look good not only in terms of economic gain but in the face of changing world politics that make American-made products all the more practical . According to Greg Kozera , director of marketing for Shale Crescent USA , one unique thing about West Virginia , Ohio and Pennsylvania is that a company can come in and build directly on top of its feedstock .
“ The gas is literally under our feet , where customers are ,” he says , emphasizing that there is potential in keeping the gas here as well as shipping it off to other places .
West Virginia is fortunate to have an abundance of both dry and wet gas , presenting two completely different but incredible sets of opportunities .
“ The traditional extraction of methane , or dry gas , for combustion is still a tremendous opportunity for our state , an opportunity that only grows as global energy supplies become more uncertain and less predictable ,” says Roger Hanshaw , speaker of the West Virginia House of Delegates . “ We have an immediate opportunity to grow our state ’ s share of energy supplied to customers , both domestically and globally , if federal infrastructure and trade policies permit us to do so .”
According to Hanshaw , the second opportunity is poised for explosive growth , given the necessary investment from private sector capital providers .
“ That is the overall universe of downstream chemical and petrochemical manufacturing that can develop from the supplies of higher-order hydrocarbons such as ethane , propane , butane and pentane , which make up what we call the wet gas ,” Hanshaw says . “ These compounds are the feedstocks that supply the global chemical and petrochemical manufacturing hubs around the world . For three generations we have shipped those materials from all over the
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