Rover Pipeline Important to Securing Michigan's Energy Future

February 5, 2015

This year, the United States became the largest global producer of oil and natural gas, surpassing countries like Russia and Saudi Arabia, and experts predict production will grow by more than 40 percent by 2040. That’s good news for Michigan job providers and working families -- if the necessary infrastructure is secured to capitalize on such continued growth. 

The proposed Rover Pipeline Project is an important opportunity for Michigan to establish direct access to low-cost natural gas from Pennsylvania and Southeast Ohio, create thousands of jobs, generate millions in tax revenue for Michigan for  decades to come, and provide a valuable input – clean and reliable natural gas – to power many of Michigan’s industries.

Today, about 70 percent of all domestic oil and natural gas is moved by pipelines. Yet, because of the dramatic increase in production, few options are available to producers to transport energy resources to high-demand consumer markets. As a result, the prices families and businesses pay to heat their homes and run their operations have not fully reflected the abundant supply of energy burgeoning in the region.

By creating reliable access to new natural gas supply sources in Pennsylvania, Ohio and West Virginia, the Rover Pipeline will help protect consumers against energy shortages—a problem that hit many rural parts of the Michigan hard last winter. It will also ensure businesses and manufacturers have access to low-cost natural gas, which will further bolster Michigan manufacturing and other industries and draw more jobs back to our communities. Approximately 3.25 billion cubic feet of natural gas is transported each day by the Rover Pipeline.

At the same time, the $3.7 billion project will create important jobs and investment throughout Michigan. An estimated 1,000 to 1,500 local, skilled labor temporary jobs are planned to support construction of the pipeline, including laborers, engineers, equipment operators, contractors and specialists. Indirect impacts including increased employment taxes paid, hotel occupancy, retail, and demand for other goods and services will reach even deeper, benefiting many sectors of the state’s economy.

Significant developments in energy production in neighboring states over the past several years can provide a huge lift for Michigan’s economy. By securing reliable access to regional supplies of natural gas through the Rover Pipeline, Michigan families and businesses are positioned to reap the full benefits of America’s energy revolution.

Securing Michigan's energy future by ensuring access to safe, affordable, and reliable energy is a high-priority for the Michigan Chamber of Commerce. To learn more, visit www.michamber.com/energy.