Economic Impact

Coterra Energy (Cabot O&G) | Economic Impact | Energy Companies | Industrywide Issues | Jobs | Pennsylvania | Supply Chain | Susquehanna County

Scranton TV Station: NEPA Community Benefits from Cabot (Video)
December 19, 2013December 19, 2013

An interesting TV segment was recently filmed about the role of Cabot Oil & Gas in providing local jobs and a boost to the local economy where they drill in rural Susquehanna County, PA. The video, filmed by Scranton TV station WNEP Channel 16, highlights the partnership Cabot has developed with several vendors (supply chain) and points out Cabot’s long-term commitment to the community–a commitment that will go on for decades to come.

If you want “the other side of the story,” the side that shows what a good corporate citizen looks like and how gas drilling enormously benefits an entire community, take the time to watch this enlightening 6-minute video:
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Economic Impact | Ethane | Industrywide Issues | Jobs | Ohio | Processing Plants | Statewide OH | Statewide WV | West Virginia | Wood County

More Details Leak About Proposed WV Ethane Cracker Plant
December 9, 2013December 9, 2013

A few weeks ago WV and Brazilian-based Odebrecht announced plans to build an ethane cracker plant near Parkersburg, WV (see WV Announces Brazilian Company to Build Ethane Cracker Complex). Wayne Dunn, the president of the commission that governs Wood County, WV where the cracker would be built, recently said some very interesting things about the cracker. One comment: he’s known about the Odebrecht cracker for more two years! Congratulations to a politician that can keep a secret that long.

Dunn also said he pegs the chances that the Odebrecht cracker will be built at somewhere between 60-80%. He says it’s far from a done deal, but the odds are better that it will be built than not. Here’s a few more interesting “insider” insights into the proposed cracker plant coming to Parkersburg, WV:
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Economic Impact | Electrical Generation | Energy Services | Industrywide Issues | Jobs | Lancaster County | Pennsylvania | Pipelines | Williams

New Electric Power Plant in Lancaster Powered by Marcellus Gas
December 5, 2013December 5, 2013

Even though there’s no Marcellus Shale under Lancaster County, PA, the county is about to benefit from the Marcellus Shale. A new electrical generating power plant is planned for Lancaster County that will be powered by cheap Marcellus Shale gas from Pennsylvania–meaning lower electricity prices for the 390,000 homes it will power. It also means a new 9-mile natural gas pipeline will be built, and a 7-mile water pipeline.

Lots of jobs in building the plant and the pipelines, some landowners will benefit from having the pipeline cross their property, and everyone in the region gets lower cost electricity. It’s a win/win/win situation–thanks to the Marcellus…
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Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA

Most PA Residents Pay Lowest NatGas Rates in 10 Years
December 4, 2013December 4, 2013

Limbo! How low can you go? Two-thirds of Pennsylvanians who heat their homes with natural gas will, this heating season, pay the lowest prices they’ve paid in the past 10 years, according the PA Public Utility Commission (PUC). Why? The Marcellus Shale, of course…
Read More “Most PA Residents Pay Lowest NatGas Rates in 10 Years”
Economic Impact | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

List of U.S. Shale Plays Ranked by Profitability (IRR)
December 3, 2013December 2, 2013

Thanks to our ever-helpful second set of eyes, Chris Acker, MDN was alerted to a Seeking Alpha article with a table showing the Internal Rate of Return (IRR) for commercially developed U.S. shale plays. It is a way of ranking shale plays (specific regions within plays) that shows the profitability of the plays. The higher the IRR percentage, the better/more profitable that play is. A dollar of investment goes further with a higher IRR.

And what did we spot in scanning the chart? The top spot–the most profitable shale play in America–is the “Marcellus Super Rich” area located in southwest PA and the northern panhandle of WV. The second most profitable play, virtually tied with the Marcellus? The “Utica Liquids Rich” region in eastern OH. It’s a fascinating table. Have a look…
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Carroll County | Economic Impact | Harrison County | Industrywide Issues | Ohio | Statewide OH | Utica Shale

Meet Ohio’s New Utica Millionaires – Hundreds of Them
December 2, 2013December 2, 2013

As part of a story about the Morgan County (OH) Landowner Group, or MCLG (see our companion story today), near the end of the story we get this short mention which, although an “off-hand” comment, comes as a startling thunderclap to MDN about the sheer number of millionaires created by the Utica Shale (i.e. “shaleonaires”):
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Economic Impact | Energy Services | Industrywide Issues | NGLs | Pipelines | Processing Plants | Williams

Williams Spending $20B (!) on Marcellus/Utica Infrastructure Next 5 Years
December 2, 2013December 2, 2013

MDN released Volume 2 of the 2013 Marcellus and Utica Shale Databook in October. Volume 2 contains one of MDN’s proudest achievements: a comprehensive list of midstream/infrastructure projects either on the boards or already under way in the Marcellus and Utica Shale region. Cumulatively the projects represent a mind-blowing $40 billion investment (see MDN’s 2013 Databook Vol 2 Finds Staggering $40B in NE Midstream Projects).

Although when we released Databook Vol. 2 we thought trumpeting our findings of $40 billion in investment may sound exaggerated and overblown to some, little did we know we may have underestimated the number! An article appearing in Tulsa World says a single company–Williams–has committed to spending $20 billion on Marcellus and Utica infrastructure (pipelines and processing plants) over the next five years. One company! Such numbers makes our jaw hit the floor…
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Economic Impact | Electrical Generation | Industrywide Issues | Pennsylvania | Wyoming County (PA)

P&G’s Only Energy Self-Sufficient Plant is Powered by Marcellus
November 27, 2013November 27, 2013

Consumer goods behemoth Procter & Gamble (P&G) has 150 manufacturing plants worldwide that make things like Pampers diapers, Charmin toilet paper and Bounty paper towels. Only one of those 150 P&G manufacturing plants is 100% energy self-sufficient–providing all of its own massive energy needs without the need to tap into the local utility grid. Can you guess where it’s located? The 100% energy self-sufficient P&G plant is in Mehoopany (Wyoming County), PA, near Scranton/Wilkes-Barre. The P&G plant in Mehoopany is powered exclusively by Marcellus Shale gas drilled right on P&G’s own property! In fact, P&G is producing so much electricity by using Marcellus gas that they sell electricity back to the local utility grid–enough electricity to power 20,000 homes! What a tremendously proud, feel-good moment this is.

Northeast PA is showing the world how shale gas is making the U.S. energy independent. Bye bye tinpot dictators in the Middle East who hate our guts! Bye bye messy wars to keep oil flowing. Hello home-grown energy, home-grown jobs and home-grown economic prosperity. Here’s the P&G feel-good story that will keep you smiling while you eat turkey tomorrow…
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Commodity Price | Economic Impact | Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

Big News: Bloomberg Writes Positive Marcellus Shale Article!
November 27, 2013November 27, 2013

Whenever we start reading a Bloomberg article about the Marcellus Shale, shale gas drilling in general, or fracking, we just know how skewed to the anti-drilling side of the ledger the story will be. So imagine our surprise when we read an article that actually reports (gasp!) the truth about the Marcellus Shale. Even though Bloomberg usually tells us the low price of natural gas can’t last, the whole shale gas thing is a house of cards waiting to collapse, drillers are trying to hoodwink investors, blah blah blah–this time even Bloomberg can’t ignore the fact that natural gas being piped into New York City is selling below the price of the benchmark Henry Hub in Louisiana–and likely will for years to come. Thanks to the Marcellus.

The Bloomberg article does a good job of giving the big picture with respect to gas prices and how drilling has become more efficient, how infrastructure (pipelines) are helping to get all that gas to market (abundance of supply equals lower prices), and predicting what’s coming next. At the end of the article is an obligatory few sentences from anti-drillers about how shale drilling will poison all of our water and make farms uninhabitable. Well, it is Bloomberg after all. But on balance, this is a good article and worth your time to read. The article begins this way…
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Economic Impact | Industrywide Issues | Lycoming County | Pennsylvania

Is the Marcellus Already Going Bust in Lycoming County, PA?
November 25, 2013November 25, 2013

Has the Marcellus Shale drilling industry already going bust? If you read the headlines of say, oh, the Philadelphia Inquirer, that may be the conclusion you reach. But if you read beyond the headlines you’ll find a different story.

The number of drilling rigs in the Marcellus is down a bit from what it was a year or two ago, that’s for sure. With less drilling comes less of a lot of other things needed for drilling (hotel visits, construction, security, catering, etc.). However, it may be more accurate to view the Marcellus drilling industry as more like taking a breather. Regrouping. Assessing. One thing is for sure, although some parts of the Marcellus drilling industry may have dipped (not gone bust, but slowed a bit), other parts of it are just picking up steam. A better metaphor is “ebb and flow”…
Read More “Is the Marcellus Already Going Bust in Lycoming County, PA?”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Processing Plants | Research | Statewide OH | Statewide PA | Statewide WV | West Virginia

Deloitte & EIA: 90,000 Marcellus Wells Drilled in Next 20 Years
November 25, 2013November 25, 2013

A new report published by consulting powerhouse Deloitte references (and affirms) U.S. Energy Information Administration’s predictions that it will take at least $5 trillion of investment in the oil and gas sector between now and 2035 to main current levels of oil and natural gas production and meet future demand as it rises. The report is titled “The challenge of renaissance: Managing an unprecedented wave of oil and gas investment.” Unfortunately we couldn’t locate a copy–but reportedly it’s full of interesting facts–like the $5 trillion number.

Another eye-popping number from the report: Current estimates are that 90,000 Marcellus Shale wells will be drilled over the next 20 years. That kind of activity will spur an unfathomable economic revival in the northeast like we haven’t seen in since, well, forever! The study says while “trillions” will be spent on upstream (drilling), “hundreds of billions” will need to be spent on midstream (pipelines & processing plants) in order to keep up with the production. More from the Deloitte study…
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Economic Impact | Hydraulic Fracturing | Industrywide Issues | New York | Ohio | Pennsylvania | Research | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

Marcellus/Utica States Slip in Global Petroleum Survey
November 21, 2013November 21, 2013

Each year, the Canadian-based Fraser Institute surveys petroleum industry executives and managers (864 of them for 2013) asking them their opinions on the barriers to investing in exploration and production in various geographies across the globe. That is, what makes them more likely or less likely to spend money drilling in a particular location? It’s vitally important to understand what drives investors because without money, drilling doesn’t happen.

The Global Petroleum Survey, as it’s called, tallies the survey responses and ranks each geography from most desirable place to invest, to least desirable. MDN reported the rankings last year (see Energy Execs Rank Drilling Locations Including WV, OH, PA, NY). A copy of this year’s full report/rankings is embedded below. How did Pennsylvania, Ohio, West Virginia and (yes) New York fare this year, compared to last?…
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Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | West Virginia | Wood County

Analysis: Why Parkersburg, WV for a Cracker Plant Complex?
November 20, 2013November 20, 2013

Don Surber from the Charleston Daily Mail writes a good analysis article in today’s edition that attempts to answer the question, “Why would Brazilian company Odebrecht pick Parkersburg, WV to build an ethane cracker plant?” Surber argues the selection of Parkersburg as the location vaults it into potentially being the most important city in the entire state of WV. He’s right.

Surber’s main point: Don’t focus on the ethane cracker, as nice as that will be. Instead, it’s the three polyethylene plants Odebrecht is going to build that are the real story, the real diamond, if (still a big if) the ethane cracker gets built. Why? It is the polyethylene (plastics) plants that will create a renaissance in manufacturing (i.e. jobs) in the region…
Read More “Analysis: Why Parkersburg, WV for a Cracker Plant Complex?”
Economic Impact | Industrywide Issues | Pennsylvania | Roads | Statewide PA

PA’s Roads Vastly Improved – Thanks to Marcellus Drilling
November 18, 2013November 18, 2013

The new president of the Marcellus Shale Coalition, Dave Spigelmyer, has hit the ground running. He’s making the rounds (recently in Scranton, see Cabot’s Big CNG Celebration at Johnson College in Scranton, PA). Now, he’s hitting the editorial pages of major state newspapers, like the Harrisburg Patriot-News.

In an editorial published yesterday, Spigelmyer makes a strong case for the enormous positive impact shale drilling has had on the state’s infrastructure–roads in particular. He points out over the past several years Marcellus drillers have spent 3/4 of a billion dollars to improve PA’s roadways. That’s money that didn’t come out of taxpayers’ pockets. And in addition to now $400+ million raised from an impact fee/tax, another $1.8 billion has flowed in to local and state coffers from taxes on Marcellus-related activities. It’s hard to overstate the huge economic impact the drilling industry has had in PA…
Read More “PA’s Roads Vastly Improved – Thanks to Marcellus Drilling”
Braskem | Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

WV Announces Brazilian Company to Build Ethane Cracker Complex
November 15, 2013November 15, 2013

Yesterday West Virginia Gov. Earl Ray Tomblin was flanked by representatives from Brazilian chemical company Odebrecht to announce the company has chosen a site near Parkersburg, WV (third largest city in the state) to be the potential site of an ethane cracker plant complex. The complex will have an ethane cracker, three polyethylene plants and infrastructure for water treatment and energy co-generation. Gov. Tomblin was justifiably proud to make the announcement, calling it a “game changer” for West Virginia. He’s right.

Odebrecht will build the plant, and once built, it will be operated by Braskem, another Brazilian company with operations in Pennsylvania (51% owned by Odebrecht). MDN told you about Braskem’s interest in a WV ethane cracker all the way back in March 2012 (see Second Company Interested in Building Cracker Plant IDed). So it appears Odebrecht/Braskem have been sniffing around the concept of building a cracker in WV for at least a year and a half. We have a lot of coverage of the announcement below. The key word here is: caution. Like the Shell cracker, this is very early in the process and not yet a 100% done deal…
Read More “WV Announces Brazilian Company to Build Ethane Cracker Complex”
Beaver County | Braskem | Economic Impact | Energy Companies | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Pennsylvania | Processing Plants | Shell | Statewide PA | Statewide WV | West Virginia | Wood County

Clash of the Ethane Cracker Titans: PA vs WV Smackdown
November 15, 2013November 15, 2013

As MDN mentions in today’s companion story about the newly announced potential ethane cracker plant complex to be built near Parkersburg, WV, there is angst in Pittsburgh about whether or not a WV cracker plant will help or harm the potential cracker plant to be built by Shell northwest of Pittsburgh in Beaver County, PA.

The Pittsburgh Business Times, a bit critical and skeptical of the WV cracker (no surprise there), tackles the question of, “Is you a friend or is you foe?”…
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