Economic Impact

Economic Impact | Exporting | Hydraulic Fracturing | Industrywide Issues

World Gone Upside Down? ANGA Video Appears on CS Monitor Website
January 29, 2015January 29, 2015

MDN came across an interesting article/video on the Christian Science Monitor website. The article and video is from Marty Durbin, President and CEO of America’s Natural Gas Alliance (ANGA). In the video, Marty takes a look at the shale revolution–in particular the Marcellus–and how it’s changing America for the better. We had to do a double-take. This kind of article on the CS Monitor? Have the lib editors suddenly gone conservative?? Then we realized–it’s “sponsor content” or contributed content. ANGA paid CS Monitor to post the story, a story (and video) from ANGA themselves. This kind of sponsored content is an expanding trend in publishing. As long as the story is clearly marked as sponsored, it doesn’t “sully” the journalistic reputation and integrity of the editors–or so the theory goes. Aside from the “inside baseball” aspect of being sponsored content, we found ANGA’s post a useful update, and the short video (6 minutes) is well worth spending a few of your minutes to watch…
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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | Regulation

Obama’s Faint Praise of Natgas in State of Union, Inhofe’s Rebuttal
January 21, 2015January 21, 2015

Last night was the second-to-last State of the Union speech to be given by our Dear Leader, Barack Hussein Obama (hallelujah!). While Obama gave credit to the oil and gas industry for generating most of the jobs created during his pathetic presidency, he also said he wants to regulate it more. Typical. He persists in calling carbon, the stuff you breathe out with every breath, “pollution” and he’s hellbent on regulating it–even though at the same time he admits we’re producing less of it! Go figure. Below we have the section of Obama’s speech where he talks about energy, including shale gas, along with the response from Sen. Jim Inhofe, the chairman of the Senate Environment and Public Works Committee. We love Inhofe–he doesn’t suffer fools well and he minces no words about Obama’s out-of-control regulatory mandates. We like Inhofe’s take: Americans are resilient. Together we can survive the Obama Administration…
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Economic Impact | Electrical Generation | Industrywide Issues | Jobs | Ohio | Trumbull County

Lordstown Gas-Powered Electric Plant Moves Up Construction Timeline
January 15, 2015January 15, 2015

In April 2014, MDN told you about a proposal from Clean Energy Future to build an $800 million electric generation plant in Lordstown (Trumbull County), OH. The plant will be fired by natural gas from the Utica and Marcellus (see Clean Energy Plans NatGas Electric Generation Plant in Lordstown). At that time, the plan was to begin construction in December 2015 and complete the plant by the end of 2018. There was initial opposition to the plant because the site on Salt Springs Road would need to be re-zoned from residential to industrial. That didn’t go down well with the neighbors. Clean Energy Future has changed the plan to a different location. Those who once opposed the plant now embrace it and want it as a jobs-creator for the area. This is a happy story of industry and residents working together for a positive solution. It illustrates what happens when adults behave like adults…
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Allegheny County | Economic Impact | Energy Services | Industrywide Issues | Jobs | New York | Ohio | Pennsylvania | Pipelines | Statewide NY | Statewide OH | Statewide PA | Transco | Williams

Williams Spending $100 million Per Month in the Marcellus/Utica
January 14, 2015January 14, 2015

There’s an excellent regional television program in Pittsburgh called “Our Region’s Business” hosted by veteran reporter Bill Flannigan. On December 7, Jim Scheel, Senior Vice President for Northeast G&P for Williams, appeared in a segment on the program (video embedded below). Scheel shared some eye-popping statistics about the Marcellus/Utica, and about Williams and their commitment to the region. Scheel said, among many things in the short 7-minute segment, that in 2014 Williams spent an astonishing $100 million per month on pipeline projects in the northeast region. They currently employ 750 people in the northeast and over the next year or so expect to add another 160 people to the payroll. What an exciting, dynamic company! Here’s a few more stats Scheel mentioned…
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Economic Impact | Energy Services | Ethane | Housing | Industrialization | Industrywide Issues | Jobs | Odebrecht | Ohio | Processing Plants | Washington County (OH) | West Virginia | Wood County

WV/OH Officials Going on Field Trip to Prepare for Cracker Plant
December 24, 2014December 24, 2014

The Odebrecht ethane cracker plant planned for the Parkersburg, WV area continues to walk/smell/act/behave like it’s the real deal. The latest evidence: Odebrecht has told area officials around Parkersburg, you need to be prepared for when the 100% official announcement comes, cause at that point, things will happen fast. So area officials are boning up now to be prepared for an influx of people and jobs–both a good thing, and a challenge. Area officials from Wood County, WV and neighboring Washington County, OH will head to the bitter-cold north country–Minot, North Dakota–in January (!) to see how that community has dealt with a rapidly expanding population and influx of new jobs due to the Bakken Shale…
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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | Research

CBO Report: Enormous Positive Impacts of US Shale
December 18, 2014December 18, 2014

While Andrew Cuomo and his buddies were busy banning fracking in New York, the Congressional Budget Office (certainly no bastion of conservatism) issued a report on fracking. The new report, titled “The Economic and Budgetary Effects of Producing Oil and Natural Gas From Shale” (full copy embedded below) says we now get 30% of our oil and 40% of our natural gas from home-grown American shale. The report says without safe, clean, fracked American shale, our natural gas prices would be 70% higher than they are. Do you like those low gasoline prices we’ve seen lately? That’s because of American-produced oil from shale deposits. The enormous amount of supply from right here at home is flooding the market and causing prices to drop like a rock. If Cuomo & co had their way, all fracking across the country would stop tomorrow. Dangerously stupid is about the only thing we can think of to say to the strange attitude being exhibited by New York’s so-called leaders. Here’s a high level overview of the CBO study, followed by a full copy of the study…
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Economic Impact | Industrywide Issues | Jobs | Research

PwC Report: “Shale Effect” has Major Effect on U.S. Manufacturing
December 12, 2014December 12, 2014

A new report released yesterday by PwC (PricewaterhouseCoopers) says not only is the “shale effect” changing the energy picture globally, it’s also boosting U.S. manufacturing by saving money boatloads of money and creating tons of new jobs. The new report titled, “Shale Gas: Still a boon to US manufacturing?” (full copy of the 12-page report below) estimates that the continued shale effect on U.S. manufacturing could bring an annual cost savings of $22.3 billion by 2030, assuming a high natural gas recovery and low price scenario. In terms of job creation, PwC estimates that continued shale gas activity will create 930,000 shale gas driven manufacturing jobs by 2030 and 1.41 million by 2040. Talk about a boom! (Meanwhile, the anti-drilling nuts in NY are bleating about banning fracking with their Not One Well campaign–go figure.) According to PwC’s managing partner in the Pittsburgh office…
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Economic Impact | Energy Services | Energy Transfer Partners | Industrywide Issues | Jobs | Ohio | Pipelines | Statewide OH | Taxation

Property Tax Revenue/Economic Impact from ET Rover Pipeline in OH
December 4, 2014December 4, 2014

Seems like “all of a sudden” large pipeline projects planned for the northeast have begun talking about how much property taxes (and economic impacts) their projects will pay out. Yesterday it was the 550-mile Atlantic Coast Pipeline project from Dominion (see Atlantic Coast Pipeline: $25M/Yr in Prop. Tax, $70M/Yr Econ Impact). Today? Energy Transfer Partners’ Rover pipeline, a 620-mile pipeline that will carry Marcellus and Utica Shale gas west, through Ohio into Michigan and on to Ontario, Canada (see Big News: ETP “Rover” Marcellus/Utica Pipeline to Midwest/Canada). How much of an economic impact and how much in property tax will it pay out? We have some numbers…
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Dominion Energy | Economic Impact | Energy Services | Industrywide Issues | Jobs | Pipelines | Statewide WV | West Virginia

Atlantic Coast Pipeline: $25M/Yr in Prop. Tax, $70M/Yr Econ Impact
December 3, 2014December 3, 2014

The arguments by anti-drillers against pipeline projects, like Dominion’s Atlantic Coast Pipeline which is slated to run from West Virginia to North Carolina, usually amount to this: “There’s no long-term benefit to the communities through which the pipeline runs. We have to ‘put up’ with the darned thing, but we see no benefit from it.” Benefit meaning money–other than a one-time fee paid to landowners through whose land it runs. Dominion is attempting to counter those criticisms by pointing out that once the Atlantic Coast Pipeline is fully operational, it will be paying in excess of $25 million per year to counties and local municipalities in property taxes (see the list below). During construction, the pipeline will generate nearly half a billion dollars per year in economic impact in WV, VA and NC. Once the construction phase is over, through permanent jobs created and associated ongoing operating costs for the pipeline, Dominion projects the pipeline will spur nearly $70 million per year of ongoing economic activity (see full report below)…
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Economic Impact | Energy Services | Industrywide Issues | Pennsylvania | Statewide PA | UGI Energy Services

UGI Central Penn Natgas Rates Go Down Thanks to the Marcellus
December 1, 2014December 1, 2014

Once again, the cost of natural gas for customers in northeast and central Pennsylvania is going down. UGI, a major utility in PA, announced last week that rates for customers of their UGI Central Penn Gas subsidiary will go DOWN starting today. Why? Instead of buying expensive natural gas produced in the Gulf of Mexico and flowing it, via pipeline, to PA, UGI is now sourcing some 80% of their natural gas from the local Marcellus Shale. Thank you Marcellus! Here’s the announcement, with how much customers will save, on average, per month…
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Economic Impact | Energy Services | Ethane | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Processing Plants | Statewide PA | Sunoco Logistics

Permit Filing Reveals NGL Mix Expected from Mariner East Pipelines
November 20, 2014November 20, 2014

Earlier this month MDN told you that Sunoco Logistics has decided to move forward–if they get regulatory approval–with building the Mariner East 2 natural gas liquids (NGL) pipeline which will stretch from eastern Ohio all the way to the Philadelphia area (see Sunoco Logistics Will Build $2.5B Mariner East 2 Pipeline). The pipeline and associated upgrades will cost Sunoco $2.5 billion. Some of the “associated upgrades” will be to the Marcus Hook refinery near Philly. A Reuters investigation, released yesterday, unearthed new details about Sunoco’s plans for the Marcus Hook refinery. Reuters got a hold of permit applications Sunoco filed with the state Dept. of Environmental Protection (DEP) in September which discloses the capacities and types of storage tanks Sunoco plans to build to hold all those incoming NGLs, which tells us what they expect to receive via the Mariner East I & II pipelines once both are operational…
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Braskem | Economic Impact | Energy Services | Ethane | Industrywide Issues | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

WV Trip to Brazil Reaffirms Cracker Plant: “Comfort Level Strong”
November 19, 2014November 19, 2014

Last week West Virginia Gov. Earl Ray Tomblin led a trade delegation on a junket to Brazil to talk with officials from Odebrecht and Braskem about the $3 billion proposed ethane cracker plant/petrochemical complex the companies are planning for Parkersburg, WV (see WV Gov. Tomblin Leads Trade Mission to Brazil re Cracker Plant). Accompanying Tomblin on the trip were his wife, Secretary of Commerce Keith Burdette and several others. Fresh back from the trip both Tomblin and Burdette have very encouraging comments. Burdette in particular effused about the ASCENT cracker plant project, saying: “Our comfort level [that the project will happen] is very strong.” Burdette also said (perhaps in response to criticisms about an expensive taxpayer-funded trip to Brazil) that it was important for WV officials to spend time in their offices–as a courtesy and to show commitment to a project that the company is spending beaucoup bucks on in WV…
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Carroll County | Economic Impact | Industrywide Issues | Lease & Royalty Payments | Ohio | Utica Shale

Shale Saves the Family Farm in Carroll County, OH
November 10, 2014November 10, 2014

Here’s a happy story that gets repeated again and again across the northeast: Shale drilling has saved the family farm. This particular story comes from the Utica Shale in Carroll County, OH where a farmer received an initial offer of $100 per acre–an offer that eventually went to $3,500 per acre signing bonus and 20% royalties. It was, according to the farmer, a fairy tale come true. Indeed, for a 233-acre farm, you do the math…
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Chautauqua County | Economic Impact | EmKey Gathering | Energy Companies | Energy Services | Industrywide Issues | Litigation | New York | Norse Energy | Pipelines | Taxation

Cuomo Dithers and Towns Like Gerry, NY Pay the Bill
November 3, 2014November 3, 2014

Not only has NY Gov. Andrew Cuomo’s dithering and refusal to make a decision on whether or not to allow horizontal hydraulic fracturing in the state materially harmed tens of thousands of landowners and farmers in the state (not to mention all of those who would have had high-paying jobs in the industry), it’s also harmed taxpayers in places like Gerry (Chautauqua County), NY. Because Cuomo dithered and Norse Energy went bankrupt, a division of Norse, Norse Pipeline, also went bankrupt because the gas wasn’t available to run through their pipeline in places like Gerry. That pipeline was sold to Emkey and a court has just re-adjusted the assessment of that pipeline’s value–from $2,616,444 to $320,439, causing Gerry to lose $2,305,368 of its tax base. Not only that…
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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Research

U.S. Fracking Lowers Gasoline Prices by Nearly $1 per Gallon!
November 3, 2014November 3, 2014

Do you like paying nearly a buck per gallon less for gasoline now over what you were paying a year ago? Yeah, we do too. But little did we know that the primary reason gas prices are so much lower is thanks to fracking! A new report released last week by the American Petroleum Institute (full copy embedded below) shows that horizontal drilling and hydraulic fracturing, which are now responsible for 48% of all U.S. oil production, shaved up to $0.94 per gallon from fuel prices in 2013. How cool is that?…
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Economic Impact | Industrywide Issues | Pennsylvania | Washington County

Fracking is Feeding Americans by Saving the Family Farm
November 3, 2014November 3, 2014

Natural gas drilling is saving the family farm in Pennsylvania–literally. Farmers who receive bonus and royalty checks are using that money to buy new equipment and continue doing what they love to do–operate the family farm. It would not be a stretch to say that fracking is helping to feed Americans. Take the case of this organic farmer in Washington County, PA…
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