Economic Impact

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    Duke U Study: Local Governments Benefit from Shale Drilling

    Duke logoNew research from the once-great Duke University actually supports shale drilling for a change–instead of denigrating it. In the past researchers from Duke, using money from the odious Park Foundation, have been bought off in their research efforts. This latest research, which concentrates on the benefits to local governments from shale drilling, wasn’t funded by Park and appears to be objective for a change. Two Duke U researchers conducted a three-year research project (between 2013-2015) funded by the Alfred P. Sloan Foundation. They traveled far and wide, to 16 states and interviewed over 200 local government officials along with gathering data and facts. The conclusion: on balance oil and gas drilling benefit local communities…
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    Gov Cuomo Turns NY into Sacrifice Zone with Frack & Pipeline Bans

    Karen Moreau
    Karen Moreau

    Yesterday API (American Petroleum Institute) New York Executive Director Karen Moreau held a conference call with reporters to discuss the importance of investing in energy infrastructure in the Empire State. By the way, API New York used to be called the API New York State Petroleum Council. Moreau spoke about Gov. Cuomo’s reckless actions in banning shale drilling, and now in preventing an important pipeline project–the Constitution–from being built. She pointed out that New Yorkers pay an average of 50% more for our electricity than residents in other states–mostly because of lack of pipelines and infrastructure in the state. When everyone thought Cuomo was about to allow fracking in select counties on a trial basis, antis called those counties “sacrifice zones.” We’re going to borrow their own language and use it against them. Gov. Cuomo has turned upstate NY into one, big economic sacrifice zone–sentencing residents to a life of poverty and enslavement. Why? To appease the people who vote him into office every four years (mostly located in New York City). A quid pro quo. Here’s an update on what Moreau said yesterday to reporters…
    Read More “Gov Cuomo Turns NY into Sacrifice Zone with Frack & Pipeline Bans”

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    New Study Proves Shale Gas has Big Impact on Manufacturing Sector

    NAM logoEverybody knows, anecdotally, that the shale revolution has been great for U.S. manufacturers. Empty plants have roared back to life and new plants have been built, bringing back millions of jobs, due to the huge quantities of natural gas being extracted from shale in the U.S. Now we have a research study to prove what we already knew anecdotally. Yesterday the National Association of Manufacturers (NAM) released a new research report from IHS titled “Energizing Manufacturing: Natural Gas and Economic Growth” (full copy below). The research finds that shale gas has put an extra $1,337 back in the pockets of the average hard-working American family. Wow! Shale gas has also contributed to the creation of 1.9 million jobs throughout the economy. Double wow! Just building natural gas transmission lines has meant more than 347,000 jobs with 60,000 of those jobs in manufacturing. Here’s the best part: All of it is without a government program or taxpayer expense. Read on for more good news about how the shale revolution and the miracle of fracking has benefited every single American…
    Read More “New Study Proves Shale Gas has Big Impact on Manufacturing Sector”

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    Constitution Pipe Denial May Destroy 2K Existing Upstate NY Jobs

    Raymond forkliftNew York Gov. Andrew Cuomo’s action to stop progress on the Constitution Pipeline has very real, tangible negative effects on jobs in Upstate New York. This is the true story of two large regional employers in New York’s Southern Tier that would benefit from cheap, abundant, and clean-burning Marcellus Shale gas from northeastern Pennsylvania. Wait. You believed the anti’s lie that all of the gas traveling through the Constitution would be transported to other areas, with much of it exported, and would not in any way benefit local residents? Yeah, that’s a lie. Another 100% lie pedaled by irrational fossil fuel haters. As the Constitution crosses places like Broome, Chenango and Delaware counties in the Southern Tier of New York State (i.e. “Upstate”), the pipeline will be tapped in several locations by Leatherstocking Gas Co.–a small but important local utility company. Leatherstocking will then provide gas to area communities and to two large businesses. One of those businesses is the Amphenol Aerospace plant in Sidney, NY. Amphenol is the largest employer in Delaware County with some 1,100 employees. Amphenol needs cheap Marcellus Shale gas from the Constitution to stay competitive and to keep the plant open. The second business is located in the small Chenango County village of Greene–Raymond Corporation. You know those bright red-colored forklifts you see in warehouses and factories? They’re all built at Raymond, which ships them worldwide. The facility is now owned by Toyota. Raymond also needs natural gas from the Constitution Pipeline. With over 800 1,600 employees at Raymond, it is the third largest employer in Chenango County. Does Gov. Cuomo really want to play Russian roulette with nearly 2,000 upstate jobs? Here’s the sad story of a corrupt governor bowing to political pressure and screwing his own constituents in Upstate…
    Read More “Constitution Pipe Denial May Destroy 2K Existing Upstate NY Jobs”

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    WV Gov Tomblin Woos Japanese to Invest in State’s NatGas Industry

    WV Gov. Earl Ray Tomblin
    WV Gov. Earl Ray Tomblin

    In 2013 West Virginia Gov. Earl Ray Tomblin wooed the Brazilians into investigating and hopefully building a multi-billion dollar ethane cracker in his state (see WV Announces Brazilian Company to Build Ethane Cracker Complex). Odebrecht was supposed to build an ethane cracker near Parkersburg, WV’s third largest city. But then the bottom fell out of the market and Odebrecht’s plans have been shelved (see Odebrecht Pushes the Pause Button on WV Ethane Cracker). We won’t say the project is dead, but there haven’t been any brainwaves in months and the only thing keeping it alive is a respirator. Is that wily WV governor at it again? Last week Tomblin hosted a delegation from Japan, attempting to woo them into exploring “new investment opportunities in natural gas statewide.” What does that mean, exactly? Presentations were delivered by MarkWest and others. MarkWest has several natgas processing and NGL fractionation plants in the state. We know we’re reading between the lines here, but it sure sounds to us like Tomblin is trying to find someone else willing to build a cracker plant in the state…
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    Construction Begins on $780M SWPA NatGas-Fired Power Plant

    Tenaska Westmoreland Generating Station
    Tenaska Westmoreland Generating Station – artist rendering

    “It’s a go” for a long-delayed $780 million natural gas-fueled power plant in South Huntingdon (Westmoreland County), PA being built by energy giant Tenaska. So said a Tenaska spokesperson following an announcement that the Tenaska Westmoreland Generating Station, a 925-megawatt (MW) natural gas-fueled power plant project near Pittsburgh, has secured $780 million in funding. The project was first proposed in 2009 and since that time has secured all of the necessary permits. The project has also faced some local opposition. According to the Tenaska announcement, construction began “earlier this year” at the project site. Black & Veatch is doing the engineering work and acting as the contractor for the project. And yes, Marcellus/Utica gas will feed the plant when it goes online in 2018…
    Read More “Construction Begins on $780M SWPA NatGas-Fired Power Plant”

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    PA Biz Affected by Drilling Slowdown, but Hope is on the Horizon

    Don't Stop BelievinYesterday MDN told you the sad news that southwest PA hotel owners have hit a rough patch and some of them are putting their properties on the auction block (see SWPA Hotel Owners Catering to Marcellus Auctions Properties). We have more news today about businesses being adversely affected by the drilling slowdown in PA. This time the stories come from the eastern part of the state. And yes, once again one of the affected businesses is a motel. And also a cleaning service. Even though “it’s tough and getting tougher out there” as well all know, we also spotted a story of hope. George Stark, spokesman for Cabot Oil & Gas, says shale drilling WILL return to PA, and it will return “with a vengeance.” What does that mean?…
    Read More “PA Biz Affected by Drilling Slowdown, but Hope is on the Horizon”

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    Shell has Spent “Half a Billion Dollars” on PA Cracker Already!

    money-bag.jpgThe Pittsburgh Business Times hosted an event yesterday in Beaver County, PA–the place where Shell is spending money to explore whether or not to build an ethane cracker plant. Seems like we’ve been writing about Shell’s potential ethane cracker forever. We’ve chronicled just about every up and down. We’ve also highlighted various initiatives they’ve undertaken since announcing Monaca, PA as their chosen site–something they did back in March 2012, now four years ago (see Shell Announces Location of Ethane Cracker Plant). Since that time Shell has purchased the property where they want to build the plant; they’re building a bridge and roads to the plant site; they’ve leased office space near the plant site. They’ve done a whole lot more. What we didn’t realize is that when you add it all together, according to Pat Nardelli, a partner at Castlebrook Development and speaker at the PBT event, Shell has spent “half billion to date if not more, and it’s going up every day.” Yikes! In this economy nobody blows a half bil on something they just decide to walk away from…
    Read More “Shell has Spent “Half a Billion Dollars” on PA Cracker Already!”

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    U.S. Chemical Industry Investment Linked to Shale Gas Tops $164B!

    The American Chemistry Council (ACC) participated in a Hudson Institute event yesterday. During a presentation made by the ACC, they announced that U.S. chemical industry investment linked to plentiful and affordable natural gas and natural gas liquids (NGLs) from shale formations has reached an astonishing $164 billion. Some 40% of that investment is for the 264 projects – new facilities, expansions and factory re-starts – that is either completed or underway. Another 55% are for projects in the planning phase. This is a big deal folks. ACC’s research shows the investments tied to shale will lead to $105 billion per year in new chemical industry output and support 738,000 permanent new jobs across the U.S. economy by 2023–including 69,000 new chemical industry jobs, 357,000 jobs in supplier industries and 312,000 jobs in communities where workers spend their wages. Below we have a variety of resources for you. We have the ACC announcement with many interesting facts and figures. We also have a fact sheet summarizing their research, a copy of the slide deck used for the presentation (with really cool slides), and a copy of a study the ACC published in 2013 with a list of the companies who, at that time, had announced major downstream projects using shale-related natural gas and liquids…
    Read More “U.S. Chemical Industry Investment Linked to Shale Gas Tops $164B!”

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    Philly Chamber Publishes Roadmap to Turn Region into “Energy Hub”

    Yesterday a large group of business, labor and political leaders gathered in Philadelphia to hear about plans to turn Philly into an “energy hub” with more pipelines delivering natural gas and natural gas liquids to the region. Chemical plants and manufacturers would spring up to use the gas and gas liquids–creating a huge economic impact for the region. According to press reports there were 200 or more gathered for the unveiling of a new report from the Greater Philadelphia Chamber of Commerce’s Greater Philadelphia Energy Action Team (GPEAT). The report is titled, “A Pipeline for Growth, Fueling Economic Revitalization with Marcellus and Utica Shale Gas” (full copy embedded below). Meanwhile, 20-30 silly anti-drillers (who don’t have lives apart from protesting) stood outside and tried their darnedest to shout and disrupt the meeting. How did they react inside? By making fun and laughing at them! Philip Rinaldi, GPEAT Chair and President/CEO of Philadelphia Energy Solutions said this to the crowd as he took the stage: “I’m inclined to ask for a brief moment of silence to hear the protesters a little better.” Love it! You had to have a ticket into the private event–and the antis couldn’t score any tickets to disrupt the event–something they bitterly complained about. We say it’s about time someone pushed back against these disorderly ne’er do wells. Here’s how it went down inside the event, a place the antis couldn’t go…
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    Harvard Says Shale Spells the End of Boom & Bust Cycle in Oil/Gas

    Thanks to our right hand, Chris Acker, MDN was alerted to a fascinating article in the Harvard Business Review. The very first time MDN heard Cornell professor and climate change huckster Tong Ingraffea (see Cornell Hydraulic Fracturing Expert Headlines First Meeting of New York Residents Against Drilling (NYRAD) in Vestal, NY), was the first time we’d heard of “boom and bust” cycles in relation to natural resources. During that meeting Ingraffea discussed “Gilmore’s 4 Stages of Boomtown Attitudes” and described how extracting coal, or cutting timber, etc. leads to cycles where communities are rapidly built up, only to later be devastated when that industry runs it course and leaves town–after exhausting the natural resource it sprang up to tap. Ingraffea described nightmare scenarios that awaited communities “foolish” enough to buy into shale gas development. Our response was and always has been–we’ll take that development, and any “bust” that comes with it–over never having had any investment at all! No industry stays in a particular geography forever. Back to the HBR article. The authors theorize that boom and bust–at least for oil and gas–may now be over. Why? Because with shale drillers can literally overnight begin producing more oil and gas when prices reach an attractive level. Meaning the price of oil will eventually hit and likely stay at around $50 barrel–like, forever…
    Read More “Harvard Says Shale Spells the End of Boom & Bust Cycle in Oil/Gas”

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    Connecticut NatGas Electric Plant Gets Funding, Construction Soon

    Competitive Power Ventures (CPV) and GE Energy Financial Services announced last week they have closed financing on the 785 megawatt CPV Towantic Energy Center in the western Connecticut town of Oxford. Some 16 investors ponied up a combined $753 million and the project, green lighted back in 1999 but on hold until it made sense economically, will now be built. The plant will be powered by clean-burning natural gas. No doubt it will be Marcellus/Utica gas flowing to the plant to power it. The project represents one of the largest private-sector infrastructure projects in the state. And it’s all thanks to shale gas. Here’s the announcement with details…
    Read More “Connecticut NatGas Electric Plant Gets Funding, Construction Soon”

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    Somber Milestone – US Rig Count Hits Lowest Level in 68 Years

    Baker Hughes released their weekly rig count numbers last Friday (see full report below). We typically don’t report on the weekly ups and downs of rig counts, preferring to check in on a monthly basis to get an idea of the overall trend. But last week’s weekly report was historic, which is why we’re commenting on it now. Baker Hughes began tabulating weekly rig counts 68 years ago. The number of working rigs in the United States last Friday hit 480–the lowest number on record since Baker Hughes began keeping records. While the Marcellus count went up by 3 last week, right now there are only 19 rigs operating in Pennsylvania–less than before the Marcellus boom began and down from the high water mark of 114 rigs operating in 2012. When rigs are operating, it means jobs and economic stimulus for a community and region. It also means landowners get royalties, and that money gets invested and/or spent in a community. The converse is also true: no rig activity, fewer jobs and economic impact. Therefore the number of rigs operating is always of keen interest…
    Read More “Somber Milestone – US Rig Count Hits Lowest Level in 68 Years”

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    Super Secret Study Details Plan to Transform NEPA Using NatGas

    Shhhh. It’s a secret. A super secret. Well, sort-of a secret. The Institute of Public Policy and Economic Development, a cooperative between a bunch of colleges located in northeastern PA, researched and compiled a new study–more than a year ago–for how northeastern PA can make the most out of the abundant, cheap and clean-burning natural gas that sits beneath them. The Institute tapped local drillers for $50,000 to research the project–and the findings are being kept secret. Why? Think of it as an NFL playbook. You don’t share your plays with the opposing team. In this case, opposing teams are other economic development agencies in other regions–like southwestern PA, eastern OH and WV. The secret study is very specific in naming names for how the region can attract new businesses that use cheap Marcellus Shale gas. The Institute doesn’t want to give away their best thinking so other regions can use the same strategies and target the same companies. Want to know what we think?…
    Read More “Super Secret Study Details Plan to Transform NEPA Using NatGas”

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    Report: Benefits of a Second American Shale Boom

    A fascinating new research paper just published by conservative think tank Manhattan Institute says there IS an antidote to being manipulated by America’s enemies, many of them members of OPEC. There IS an antidote to wild price swings in oil and gas prices. There IS an antidote to the poor economic conditions we experience here in the U.S. under Barack Obama. Know what it is? A second shale boom. IF the U.S. were to become the dominant exporter of energy around the world, we reap economic and geopolitical benefits like you can’t believe. In “Expanding America’s Petroleum Power: Geopolitics in the Third Oil Era” (full copy below), the author notes that the number of cars in use worldwide has risen threefold, aviation miles have gone up sevenfold, and maritime shipments increased threefold in the last 40 years. What powers 95% of that transportation? Oil and its derivatives. We need a second American shale boom and we need it soon. Read about it below…
    Read More “Report: Benefits of a Second American Shale Boom”

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    More Evidence of the Slowdown in the Marcellus

    We won’t continue to beat the drum indefinitely that “it’s bad out there.” Everyone knows it. However, we did honestly and truthfully report when the Marcellus industry was on the upswing and it seemed like everything was coming up roses. So we will now honestly and truthfully report when our beloved industry is on the downswing. We don’t sugarcoat it here at MDN. The latest bit of “it’s bad out there” evidence comes from Greene County, PA and Hot Rod’s House of Bar-B-Que where it used to be you couldn’t get a seat at lunchtime, but now it’s “walk right in, sit right down”…
    Read More “More Evidence of the Slowdown in the Marcellus”