Document Type

Report

Publication Date

Winter 2-18-2021

College/Unit

Chambers College of Business and Economics

Department/Program/Center

Bureau of Business & Economic Research

Subject

economic impact, natural gas, unitization, pooling

Abstract

In this study, we examine the potential economic impact of instituting a unitization law in West Virginia. The economic impact of natural gas unitization will depend largely on the increase in drilling and production that will come as a result of resource unitization. We define two scenarios whereby drilling activity in West Virginia is assumed to increase by either 5 percent or 10 percent above current levels. We then estimate the additional economic activity from three major sources: well construction, spending due to ongoing production, and royalties paid to rights-holders within the state.

Included in

Economics Commons

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