GUEST COLUMN

Many years ago there was a saying in the Gulf Coast oil patch that went, “let the Yankees freeze to death in the dark.” That saying had everything to do with Gulf coastal states producing oil and gas and shipping it to the northern tier of states and with interstate pipeline laws in effect, at a cheaper price than was available to our utility companies in the producing states. The pipelines were built to get the much-needed product to those areas that were in need but without the resource. But that has changed.

In recent times, the energy industry continues to maintain the arteries that connect American citizens to the energy that fuels everyday life. Through a network of over 2.5 million miles of pipeline operated by approximately 3,000 different companies, oil, gas, and petrochemical stock is transported to end-users in markets across the country.

This feedstock is used to heat homes and to manufacture products that every person uses – every day! Natural gas provides a quarter of our national energy consumption – and requires a safe method of transport from development to consumer. With the breadth of shale developments over the last two decades, it is clear that we need to expand energy infrastructure away from being centralized on the Gulf Coast and to regionalize the development closer to Appalachian sectors, with Pennsylvania now the nation’s second largest producer of natural gas

Across the country, states are increasingly relying on natural gas and looking to these hubs for core resources. According to Forbes, the extensive Marcellus and Utica shale deposits have “changed the directional flow of the entire U.S. transmission system,” which now runs “more east to west and north to south.” A recent Natural Gas Intelligence Shale Primer qualifies that this pace of production would in fact be faster were it not for the lack of midstream capacity in the Appalachian region that have led to “bottlenecks in the Marcellus.” Infrastructure needs to expand here to meet demand and to capitalize on the resource, given how recent developments have demonstrated that the regional natural gas supply is vast and recoverable enough to support sustained market growth across regional economies.

With these vast resources, it is important to regionalize production to capitalize on the resources in various regions. There is no reason for Pennsylvania-developed resources to ship to other regions for processing only to be transported back to Pennsylvania for end-use. This is inefficient and more costly than regional development itself. Additionally, having those train and truckloads of volatile material on the highways and bi-ways with our friends, relatives and other citizenry is an ongoing and dangerous proposition. Thousands and thousands of daily shipments running parallel to our personal automobiles every hour of every day is a very scary proposition.

The Appalachian Basin is the fastest-growing and the most incremental source of domestic natural gas supply, but if the gas cannot get to market then it can only have so much impact on the surrounding region. Though Pennsylvania has expanded its energy infrastructure in recent years, Forbes argues that this development has not expanded “as significantly as the state could justify”.

Energy industry leaders have been involved in changing the course of that conversation, and Energy Transfer Partners, Williams and Shell have made real strides in revitalizing local energy infrastructure and spurring economic growth through the proposed Mariner East 2 pipeline, the Atlantic Sunrise pipeline, and Shell’s ethane cracker plant in Pennsylvania. Also, the revitalization of the Marcus Hook Industrial Complex in southeastern Pennsylvania provides a necessary access point for Pennsylvania energy resources to markets, which need these products.

This growth has given new life to southeastern Pennsylvania, where Sunoco recently began shipping ethane domestically by truck. Sunoco also transports propane to Marcus Hook through the Mariner East pipelines, which is used to heat and power homes and businesses, and bolsters Pennsylvania’s industrial and manufacturing sectors. With such local energy wealth, refusing to make necessary infrastructure investments does not make sense. From a regulatory and permitting perspective, it is past time for regional leaders to support Pennsylvania and develop a more integrated energy network with upstream, midstream, and downstream sectors.

Pennsylvania is one of a few states with this opportunity and needs to take full advantage. For these regions to fully benefit there is an eminent need to regionalize energy production and to support safer and more efficient energy infrastructure projects that “will” get local energy to local consumers safely and in a more cost-effective manner. No one in America should ever have to fret over the thought of freezing to death in the dark! This is a solvable proposition.

be taxed the same as domestic U.S. companies because they could no longer hide their profits in tax haven countries. The various subsidiaries, branches, and partners used to obscure tax liability would all be considered part of the same overarching entity.

SFA could also improve America’s trade competitiveness, since domestic producers would only pay taxes on domestic sales, not exports. Conversely, foreign producers who sell goods and services in the U.S. would be required to pay taxes on their U.S. sales as the price of accessing America’s lucrative consumer market.

It’s estimated that in 2016 alone, profit-shifting through tax havens reduced U.S. corporate tax revenues by 34 percent. A destination-based tax would halt this hemorrhaging of much-needed revenues while allowing a reduction of the overall corporate tax rate

It’s time to end discrimination against domestic U.S. companies that play by the rules and don’t hide profits in tax havens. Taxing all companies based upon the profits from sales to U.S. consumers levels the playing field. Small and large corporations would all pay equally for the privilege of profiting from access to the U.S. market. Leave your comments online Use hashtag at