Thanks to shale development, the Northern Panhandle and Upper Ohio Valley is undergoing an economic revolution not seen since the birth of the steel industry. I recognize that’s an incredible statement, but you don’t have to take my word for it. Just ask any economic development professional in the region.

Pat Ford, executive director of the Business Development Corporation of the Northern Panhandle, was quoted in a February 2018 State Journal article as saying, “There’s more than $66 billion in private investment underway or forecast in the Ohio River Valley between Dilles Bottom, Ohio, and Monaca, Pennsylvania. Royal Dutch Shell is building an $8 billion ethane cracker in Monaca, while PTT is still mulling the feasibility of building one in Dilles Bottom.”

“They’re the bookends of development in that corridor,” Ford said. “In between, we have the stars aligning for an ethane storage hub — that’s another $10 billion. Southwestern Energy purchased Chesapeake’s assets — that number was well over $5 billion — and you have multiple natural gas power plants planned, permitted and some even under construction — that’s over $2 billion. And there are other investments that are smaller but still huge, like Ergo — they’ve made a $100 million investment. Billion wasn’t even in our vernacular before the oil and gas industry took over.”

These are staggering investments that are resulting in thousands of jobs and incredible economic growth for the entire region.

The Ohio River Valley in West Virginia is a dominant producer of natural gas and oil. Consider that in 2017, Wetzel County was the state’s second leading producer of natural gas while Marshall County and Ohio County came in fifth and seventh, respectively. When it comes to oil production, Ohio, Marshall and Brooke Counties are the top three producers in the state.

Beyond gas industry-related jobs, this production is benefitting all Northern Panhandle residents in a variety of ways. Current year property taxes on natural gas and oil will provide $5.5 million to Ohio County, $8.8 million to Marshall County, $2.4 million to Brooke County and $12.4 million to Wetzel County. These funds are used to support the education system and county operations.

Additionally, each county receives a share of natural gas and oil severance taxes. Newly released numbers show that Ohio County will receive over $644,000, Marshall County $1.3 million, Brooke County $309,000, and Wetzel $1.4 million. And, these receipts have all increased from last year’s distribution.

However, there are some that believe West Virginia should increase the severance tax on natural gas to fund the Public Employees Insurance Agency (PEIA) and other budgetary needs.

Unfortunately, this would be certain to hurt working West Virginians, as well as the state itself.

West Virginia is not the only state that sits on top of these shale plays. Pennsylvania and Ohio do too, and they are drilling and producing more than we are due to the industry-friendly climate in those states.

In fact, Pennsylvania produced more than three times the amount of gas as West Virginia last year, with Ohio not too far behind that output.

West Virginia already taxes the severance of oil and natural gas much higher than Pennsylvania and Ohio. Pennsylvania does not have a severance tax, but an “impact fee,” which compares significantly lower to West Virginia’s current 5 percent severance tax. Ohio’s severance tax is also much lower, at a comparative 1.25 percent. If we increase West Virginia’s already comparatively high tax, production and development will move to our surrounding states.

The price of natural gas is a critical factor in the amount of severance tax the state can collect. Because the price varies, as does the amount of gas and oil produced, so do the annual receipts. The collections have varied by $100 million in just the past five years! That’s one of the primary reasons that the chairmen of the West Virginia Senate and House of Delegates finance committees came out against raising the severance tax to fund PEIA.

As an industry, we support our teachers and our schools. Our employees live throughout the Northern Panhandle, as well as the state, and we want the best for our children and our educators. In fact, our member companies contribute significant time and resources to important educational and community initiatives throughout the Ohio River Valley.

Increasing the severance tax on oil and natural gas isn’t the answer. A rising tide lifts all ships and we’re seeing that play out in the form of job creation and new opportunities.

We are on the cusp of foundational economic change and I’m excited for the region and state’s future.

Blankenship is executive director of the West Virginia Oil & Natural Gas Association.