Economic Impact

Economic Impact | Ethane | Industrywide Issues | Ohio | Statewide OH | Utica Shale

Plastics, Low Electric Rates from Utica/Marcellus Help NE OH Cos.
April 10, 2014April 10, 2014

How can northeastern Ohio, once thought to be the epicenter for Utica Shale drilling but now yesterday’s news, still profit from the shale drilling revolution happening in the southern part of the state? As Dustin Hoffman’s character was told in The Graduate, one word: plastics. Plastics and petrochemicals were the main focus of the “Plastics Products from Utica Energy” event held in Canton, OH on April 7th. Ethane from Utica and Marcellus Shale drilling can be cracked to produce ethylene, the raw material used in making plastics. With two cracker plants planned in the region–one in Beaver County, PA and one in Parkersburg, WV–petrochemical manufacturers in northeastern OH are in a great geography to take advantage of shale drilling, even if it’s not happening where they are located.

However, plastics is not the only thing Ohio manufacturers need. They also need cheap electricity, and natural gas used to fire electric generating plants is lowering the cost of electricity throughout the region (along with lowering pollution), which is very good news for northeastern OH, giving their manufacturers a leg up on other areas…
Read More “Plastics, Low Electric Rates from Utica/Marcellus Help NE OH Cos.”
Economic Impact | Industrywide Issues | Ohio County | Supply Chain | West Virginia

Oglebay Resort Profits from NE Shale in a Way You’d Never Guess
April 10, 2014April 10, 2014

The Oglebay Resort & Conference Center by all accounts is a spectacular venue and the perfect place to hold a conference. With 1,700 acres near Wheeling, WV, Oglebay offers 271 rooms, 54 standalone cottages, a spa, indoor pool, jacuzzi, sauna, top notch cuisine and dining…you get the picture. The West Virginia Oil & Natural Gas Association (WVONGA) chose Oglebay to host its first-ever ShaleSafe Conference & Expo, held earlier this week (see a pair of MDN stories about the event in today’s lineup).

The purpose of this story is to highlight how Oglebay is benefiting (profiting!) from the shale drilling industry. Given their great location, in the middle of shale drilling on all sides (SW PA, WV, OH), it’s no surprise that Oglebay is happy to host a number of shale and oil & gas related events. It’s an important new revenue stream for them. With pristine countryside and unparalleled views, with old-growth trees and wildlife frolicking around the 1,700 acres, you would certainly want to protect and maintain it. But wait, what’s this? Oglebay leased their land for drilling in 2009 (gasp) and they now receive royalty checks too? That’s right–and when you visit Oglebay with its pristine countryside and unparalleled views, you’d never know it unless they told you…
Read More “Oglebay Resort Profits from NE Shale in a Way You’d Never Guess”
Carroll County | Economic Impact | Housing | Industrywide Issues | Jobs | Ohio | Stark County | Utica Shale

Stark County Still Sitting Pretty in the Utica, Even Without Drilling
April 9, 2014April 9, 2014

Stark County, OH has gone through dramatic changes in a short period of time. Just a few years ago Utica Shale drilling near Stark County was hot with Chesapeake Energy leading the charge in places like neighboring Carroll County. Stark (and its largest city, Canton) were the beneficiaries of all that drilling in the northern part of the Utica play. Today? The “sweet spot” of Utica drilling has moved south, and yesterday’s hot areas like Stark and Carroll are today’s cold areas. Or are they?

Although drilling in Stark never really took off and although drilling in nearby Carroll is starting to decrease, that doesn’t mean Stark is not benefiting, in a big way, from Utica drilling. David Kaminski, the Canton Regional Chamber of Commerce’s director of energy and public affairs, said Stark County is still sitting pretty with respect to the Utica…
Read More “Stark County Still Sitting Pretty in the Utica, Even Without Drilling”
Bradford County | Economic Impact | Electrical Generation | Industrywide Issues | Jobs | Lycoming County | Pennsylvania | Supply Chain

Plugging in to Panda Power’s Electric Generation Supply Chain
April 9, 2014April 9, 2014

As we reported in December, Panda Power Funds, a private equity firm located in Dallas, TX, purchased the rights to build two electric generating plants–one in Bradford County, PA and the other in Lycoming County, PA (see Panda Power Buys Rights for 2nd Marcellus-Fueled Electric Plant). Construction on the Bradford County plant, dubbed Panda Liberty, is under way now. Panda is spending northward of $1.3 billion to build the two plants–an incredible amount of money that’s being pumped into the northeastern Pennsylvania economy.

MDN spotted an article that mentions Panda and their projects, including the two PA electric plants. The reason that we bring it to you is that it provides background on the vendors Panda is using to build the plants. Which may be of interest to companies that would like to plug into the supply chain and see if they can drum up some business from these two projects…
Read More “Plugging in to Panda Power’s Electric Generation Supply Chain”
Economic Impact | Industrywide Issues | Jobs | Ohio | Pipelines | Processing Plants | Statewide OH | Utica Shale

Media Picks Up on Report Listing $18.7B of OH Shale-Related Projects
April 8, 2014April 7, 2014

Last week MDN called attention to a report “quietly” released by the Columbus, Ohio law firm of Bricker & Eckler LLP that lists more than 100 small to large infrastructure and economic investment projects under way in Ohio, county by county, related to the shale industry (see New List of Shale-Related Infrastructure/Economic Projects in OH). We noticed that after we highlighted the report, a number of other media outlets did too (jest sayin’).

In fact on Monday, Crain’s Cleveland Business ran a big article highlighting the report and the data about the projects found in it, including the grand tally of the projects now being developed thanks to shale drilling in Ohio: $18.7 BILLION. We thought you would like to read more about the good economic news happening in Ohio, thanks to shale…
Read More “Media Picks Up on Report Listing $18.7B of OH Shale-Related Projects”
Anti-Drilling/Fossil Fuel | Berks County | Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Processing Plants

0.0024 of Berks County Population Opposes New $1B GTL Plant
April 7, 2014April 7, 2014

Over the past several years MDN has told you about a number of gas-to-liquids (GTL) projects trying to get underway in the Marcellus and Utica Shale region. GTL converts cheap, abundant natural gas into motor oils and diesel fuel. Kind of like spinning gold from hay. One of those projects is a proposal by Canadian company EmberClear Corp. that wants to build such a plant in Berks County, PA–near Philadelphia. EmberClear proposes to spend upward of an eye-popping $1 billion to build a plant that will create 100 permanent jobs when it’s completed–to say nothing of the hundreds of temporary jobs needed to build it (see Another New Gas-to-Liquids Plant Coming in PA – Near Philly).

As soon as you announce such a project, wacko anti-drillers pop up (like a game of Whack-a-Mole) to oppose it. Such a group has formed in Berks County. Called the South Heidelberg Community Association, the group has gotten 1,000 people to sign a petition against this $1 billion economic miracle that would exist in their area. Let’s see, 1,000 people of the Berks County population of 411,442–or 2/10ths of one percent. Will this infinitesimally small number of people ruin it for everyone?…
Read More “0.0024 of Berks County Population Opposes New $1B GTL Plant”
Economic Impact | Industrywide Issues | Jobs | Ohio | Pipelines | Processing Plants | Statewide OH | Supply Chain | Utica Shale

New List of Shale-Related Infrastructure/Economic Projects in OH
April 1, 2014April 1, 2014

Researchers with the Ohio energy law firm of Bricker & Eckler LLP have done us all a huge favor. They have assembled a really cool list infrastructure and business projects county by county in Ohio that are known or rumored–all related to the Utica/Marcellus Shale industry. The list (full copy embedded below) lists the county where the project is occurring, the company(s) involved, a brief description of the project and if known, the projected amount of investment.

Workers looking for jobs, businesses that want to get a piece of the action (supply chain), competitors and more will want to review this awesome list. Yes, it does bear a passing resemblance to our own list of infrastructure projects in Vol. 2 of the Marcellus and Utica Shale Databook. Some of the same projects are listed. However, Bricker & Eckler’s list is specific to Ohio and includes many smaller non-pipeline related projects. Kudos to them for producing a great report…
Read More “New List of Shale-Related Infrastructure/Economic Projects in OH”
Bradford County | Economic Impact | Electrical Generation | Industrywide Issues | Pennsylvania | Processing Plants

Rural PA County Hopes NatGas Electric Plant Attracts Businesses
March 31, 2014March 31, 2014

Here’s a new twist: Economic development leaders in Bradford County, PA are hoping a local natural gas-fired electrical generating plant now being built will be a magnet that attracts petrochemical businesses to the area. We’ve known for some time (since last year) that Moxie Liberty, which later sold the rights to Panda Liberty, would build a new electrical generating plant near Wyalusing (Bradford County), PA (see Moxie Liberty Sells PA Electric Plant Project to Panda Power). The Panda Liberty plant is now under construction with large cranes and more than 100 workers in and around the site.

Local economic development leaders are hoping the Panda Liberty plant, which will use locally mined Marcellus gas, will catch the attention of petrochemical manufacturers of waxes, lubricants and other products that use natural gas as an ingredient. Already inquiries from such “downstream” businesses have been coming in–a very good sign indeed…
Read More “Rural PA County Hopes NatGas Electric Plant Attracts Businesses”
Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

WV Commerce Sec Burdette Praises Odebrecht/Antero, Warns Drillers
March 28, 2014March 28, 2014

Aside from WV Gov. Earl Ray Tomblin, no one in West Virginia has been more dedicated, more focused and more committed to finding an ethane cracker plant for the state than WV Commerce Secretary Keith Burdette. MDN has stories going back years that mention Burdette and his quest for a cracker (just one example: WV’s Burdette Still in Hunt for Ethane Cracker Plant). We think it’s a fair statement to say without Burdette, the Odebrecht cracker plant project would not have happened. Our hat is off to Keith and the marvelous work he’s done for the state.

Yesterday Keith delivered a rousing speech at the Marcellus to Manufacturing Ethane Development Conference at the Charleston Civic Center. We have a transcript of his speech below. In it, Keith acknowledges the contributions of Odebrecht’s David Peebles in making this project happen. He also praises Antero Resources for their bold and brave commitment to providing half of the ethane for the new cracker plant. Finally, Keith sounds a word of warning to other drillers that are signing agreements to ship ethane out of the northeast region. He believes they may want to reconsider. The northeast has enough ethane for “a dozen crackers” if so much of it wasn’t heading to the Gulf Coast or Canada via pipeline…
Read More “WV Commerce Sec Burdette Praises Odebrecht/Antero, Warns Drillers”
Antero Resources | Braskem | Economic Impact | Energy Companies | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

Antero to Provide 50% Ethane Needed at Parkersburg Cracker Plant
March 27, 2014March 27, 2014

The ethane cracker plant planned for Parkersburg (Wood County), WV, to be built by Odebrecht and operated by Odebrecht subsidiary Braskem America, took another giant step closer to reality yesterday. Powerhouse Marcellus/Utica driller Antero Resources announced they will provide 30,000 barrels per day of ethane for the proposed new plant when/if it gets built. That’s half of what the plant needs to operate. Antero Resources CEO Paul Rady was joined by Odebrecht VP of business development David Peebles on stage at the Marcellus to Manufacturing Ethane Development Conference at the Charleston Civic Center for the big announcement yesterday. WV Gov. Earl Ray Tomblin took to the stage to crow about the deal too (he’s earned the right).

It was just Monday of last week that MDN observed that the Odebrect cracker plant just “feels” like it’s going to happen (see Odebrecht’s WV Ethane Cracker has The Big Mo–Momentum). Yesterday’s Antero announcement is more evidence of that. Below is the official Antero announcement about their ethane contribution to the proposed new cracker, along with a report of who said what about the deal at yesterday’s Charleston conference…
Read More “Antero to Provide 50% Ethane Needed at Parkersburg Cracker Plant”
Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell | Statewide PA

County Officials Meet with Shell on PA Cracker, Come Away Hopeful
March 27, 2014March 27, 2014

Seems like it’s “cracker day” at MDN. Long before Odebrecht announced their potential ethane cracker plant for Parkersburg, WV, Shell announced plans to build a cracker in Pennsylvania. In fact it was exactly two years ago this month that Shell announced the location would be Monaca (Beaver County), PA (see Shell Announces Location of Ethane Cracker Plant). PA state legislators eventually voted on a package of significant tax breaks for the proposed new plant (see PA Legislature Reaches Deal on Tax Credit for Cracker Plant). However, since that time, it seems like the PA cracker deal has cycled through highs and lows as to whether it would actually get built (see PA Ethane Cracker – On Again, Off Again…Now On Again?).

More recently MDN told you the pendulum had swung back to the pessimistic side (see Shell’s Shale Pessimism Signals Worry for Some re PA Cracker). But what’s this? Last week some 30 Beaver County officials met with Shell about the proposed ethane cracker plant and left that meeting feeling “hopeful”–which is a good sign. Shell told the officials about moving forward with plans to move a portion of a local roadway, relocate power lines and other big-ticket projects that Shell would not be spending money on unless there is serious interest in moving forward. Here’s more from last week’s hopeful meeting between Shell and Beaver County officials…
Read More “County Officials Meet with Shell on PA Cracker, Come Away Hopeful”
Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell

Cracker Plant Talk Spurs Economic Growth in Beaver County, PA
March 26, 2014March 26, 2014

Over the past couple of years the prospects for an ethane cracker plant in Beaver County, PA have swung from wild optimism to wild pessimism and everything in between. Most recently the pendulum has once again tilted negative (see Shell’s Shale Pessimism Signals Worry for Some re PA Cracker). But don’t talk negative to the businesses setting up shop and expanding in Beaver County. The mere talk that it’s possible Shell will build the $2-$3 billion ethane cracker in Monaca has caused a significant uptick in the local economy. One Realtor has said for businesses looking to get a piece of the coming economic pie–you’re already late! Many have already grabbed up space and it’s increasingly difficult to find commercial real estate in the county.

Here is the story of the economic boom already under way in Beaver County just from talk–talk that Shell may build a cracker plant there…
Read More “Cracker Plant Talk Spurs Economic Growth in Beaver County, PA”
Blair County | Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Supply Chain

Companies Flock to Blair County, PA to Serve Marcellus Industry
March 24, 2014March 24, 2014

Blair County, PA (home of Altoona) doesn’t have active Marcellus or Utica Shale drilling. But that doesn’t mean the industry hasn’t been an economic boom for the county. Because it is located at the doorstep of wet gas drilling in southwestern PA, and not all that far from dry gas drilling in northeastern PA, Blair is quickly becoming supply chain central for the drilling industry. In May 2012 MDN told you about a new pump plant setting up in Blair to service the industry (see Altoona Scores a New Pump Plant for the Marcellus). According to the plant manager, 2013 was a banner year and they “exceeded all of our targets and projections.”

HalenHardy LLC, a company that created and manufactures an innovative mobile air unit to suck silica dust off workers’ clothes, opened in Blair in January 2013. HalenHardy won an award last September for their technology (see HalenHardy Wins Ben Franklin EHS Award for Silica Air Shower). They won a second award for their technology last week–at the Oil & Gas Awards (more on that this week, check back). A second Oil & Gas Awards winner has also set up shop in Blair County–Drill Baby Drill Staffing. Read on to learn about other companies that have located and are now flourishing in Blair County–companies aimed at providing products and services for the Marcellus Shale industry…
Read More “Companies Flock to Blair County, PA to Serve Marcellus Industry”
Economic Impact | Ethane | Industrywide Issues | Jobs | Processing Plants | Research | Statewide WV | West Virginia | Wood County

Report: Coming Economic Miracle in WV from Ethane Cracker Plant
March 24, 2014March 24, 2014

In February MDN told you about a newly released research report from Tom Witt, economist and former director of West Virginia University’s Bureau of Business and Economic Research and professor emeritus at WVU. Witt, now a private consultant, took a close look at realistic numbers for how many jobs and how much money the proposed Odebrecht ethane cracker and associated petrochemical plants will generate for WV and the region (see Economist Releases Report on WV Cracker Plant’s Economic Impact). The numbers are truly astonishing.

In February we could not get our hands a copy of the study, which is titled “Building Value from Shale Gas: The Promise of Expanding Petrochemicals in West Virginia.” We now have a full copy and have embedded it below. We also have an editorial written by Witt and published a few days ago describing the study and his take on the coming economic miracle in WV from Odebrecht’s ethane cracker plant…
Read More “Report: Coming Economic Miracle in WV from Ethane Cracker Plant”
Economic Impact | Industrywide Issues | Jobs | Research

America’s Cities Big Winners from Cheap Marcellus Shale Gas
March 21, 2014March 21, 2014

Yesterday the U.S. Conference of Mayors released a new study from IHS that shows the positive impact inexpensive and abundant natural gas is having on the manufacturing sector. Titled “Impact of the Manufacturing Renaissance from Energy Intensive Sectors” (full copy embedded below), the report provides analysis and detailed data on the impact for jobs and the economy in 363 metro areas across the United States. Nine key sectors are analyzed, including: Basic organic chemicals; iron and steel mills; fabricated metals; machinery; nonmetallic minerals; resin, rubber and fiber; plastics and rubber; agricultural chemicals; and petroleum and coal products. According to the report, in 2011 and 2012, demand from the Marcellus and other growing shale plays for new pipelines and mining equipment ignited the nation’s steel, iron, fabricated metals, and machinery manufacturing industries. In U.S. metro areas, these sectors saw real sales and employment jump by 17% and 9.7%, respectively, during those years.

Through 2020, the report projects energy intensive manufacturing employment will expand by more than 1% annually nationwide, with 72% of those jobs coming in metro areas. That is, America’s cities are the beneficiaries, both economically and in job growth, because of cheap natgas. Below are the key findings of the report, followed by a full copy…
Read More “America’s Cities Big Winners from Cheap Marcellus Shale Gas”
Economic Impact | Industrywide Issues | Jobs | Pipelines | Research

New Research: US/Canada Need $30B/Year on Midstream Investment
March 19, 2014March 19, 2014

In September 2013 MDN published Vol. 2 of the 2013 Marcellus and Utica Shale Databook series. In that volume we included a comprehensive list of 111 announced infrastructure (pipeline related) projects for the northeast. When we tallied it all up, the numbers were that projects in our neck of the woods will result in about $40 billion being spent over the next five years or so (see MDN’s 2013 Databook Vol 2 Finds Staggering $40B in NE Midstream Projects). The INGAA Foundation (Interstate Natural Gas Association of America) and ANGA (America’s Natural Gas Alliance) yesterday released a study they commissioned that tops our estimates–by a lot. The study is titled, “North America Midstream Infrastructure through 2035: Capitalizing on Our Energy Abundance” (full copy embedded below). Researched and prepared by ICF International, the new study shows that the U.S. and Canada together will need to spend $30 billion per year from now until 2035 on pipelines and related infrastructure just to keep pace with shale development.

ICF’s numbers add up to $641 billion in 2012 dollars over 22 years. But get this: $70 billion of that $641 will be spent in the Marcellus, according to the study. Nationwide the new spending will generate more than 432,000 jobs, add approximately $885 billion to U.S. and Canadian economies, and bring in over $300 billion in federal, state/provincial and local taxes. Truly staggering numbers. Immediately below we have the quick hit, bulleted conclusions of the report, for the time-pressed, so you can scan it. Below that the press release announcing the new study–and finally, a full copy of the study with some great charts and graphs (be sure to check out their Henry Hub price forecast through 2035 on page 24)…
Read More “New Research: US/Canada Need $30B/Year on Midstream Investment”