Economic Impact

Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | Research

ACC: Shale-Related Petrochem Projects Mean $72B Invest, 530K Jobs
May 29, 2013May 29, 2013

Last week the American Chemistry Council (ACC) released the third report in a series that examines the economic benefits of U.S. chemical industry investments linked to abundant and affordable supplies of shale gas. The latest report, titled “Shale Gas, Competitiveness, and New U.S. Chemical Industry Investment—An Analysis of Announced Projects” (full copy embedded below), analyzes 97 chemical industry investment projects that have been announced through the end of March 2013.

According to ACC, in just five short years the U.S. has gone from one of the world’s highest-cost producers of petrochemicals to one of the world’s lowest-cost producers–thanks to the miracle of hydraulic fracturing and horizontal drilling. The economic implications are as astonishing as they are profound. According to the report, the U.S. is on track for $71.7 billion in investment and more than half a million permanent new jobs due to just 97 chemical industry projects related to shale gas.
Read More “ACC: Shale-Related Petrochem Projects Mean $72B Invest, 530K Jobs”
Economic Impact | Harrison County | Industrywide Issues | NGLs | Ohio | Processing Plants | Statewide OH | Utica Shale

New 1-Mile Railroad Siding in Utica Shale will be “Game-Changer”
May 24, 2013May 24, 2013

If you’ve read MDN for any length of time, you know we love a good railroad story. Here’s another one, this one in the Utica Shale…
Read More “New 1-Mile Railroad Siding in Utica Shale will be “Game-Changer””
Commodity Price | Economic Impact | Industrywide Issues

Marcellus Will Produce More Supply than Demand in NE – This Summer!
May 23, 2013May 23, 2013

A shocking observation from RBN Energy founder Rusty Braziel that he made last week at the Bentek Benposium event in Houston: Northeast demand for natural gas will be almost entirely met from local Marcellus production in the coming years. Starting this summer, the region will produce more supply than total demand! Implication? “Significant re-plumbing of the US natural gas pipeline distribution system will be needed.” That re-plumbing is already underway.

Rusty describes how production forecasts from just two years ago (2011) are wrong–way wrong, on the low side–because of the super-producing Marcellus Shale:
Read More “Marcellus Will Produce More Supply than Demand in NE – This Summer!”
Commodity Price | Economic Impact | Hydraulic Fracturing | Industrywide Issues | Research

Moody’s Report: Shale is Here to Stay, Gives U.S. Huge Advantage
May 15, 2013

A 16-page, $550 report from Moody’s Investors Service released on Monday says shale drilling in the U.S. is here to stay, gives America an ongoing advantage over Read More “Moody’s Report: Shale is Here to Stay, Gives U.S. Huge Advantage”
Crude Oil | Economic Impact | Hydraulic Fracturing | Industrywide Issues

IEA Says American Shale Creating an Oil “Supply Shock” Worldwide
May 14, 2013May 14, 2013

Earlier this morning in London, the executive director of the International Energy Agency (IEA) made some starting statements and predictions about the abundance Read More “IEA Says American Shale Creating an Oil “Supply Shock” Worldwide”
Economic Impact | Industrywide Issues | Statewide WV | West Virginia

How Much (in Total) is an Acre in the WV Marcellus Worth?
May 13, 2013May 13, 2013

An editorial written by David McMahon, co-founder of the West Virginia Surface Owners Rights Organization, says by his estimates each Marcellus Shale acre is worth Read More “How Much (in Total) is an Acre in the WV Marcellus Worth?”
Economic Impact | Industrywide Issues

Interesting Facts Emerge from Behind the Low Rig Count Headlines
May 13, 2013May 13, 2013

The headlines blare the news: The Baker Hughes rig counts are at an 18-year low for natural gas drilling rigs operating on U.S. soil. However, when you dig Read More “Interesting Facts Emerge from Behind the Low Rig Count Headlines”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Tioga County (PA) | Wastewater

NY Company Sells Frack Wastewater Technology to PA Site
May 8, 2013May 8, 2013

Even though New York State is an economic and jobs-creating disaster area with no prospect of shale drilling to lift it from the economic basement any time soon, some New York-based companies are still profiting from the shale boom–that is the shale boom happening across the border in Pennsylvania. One such company is R3 Fusion, Inc. in Troy, NY. R3 makes technology that recycles fracking wastewater for reuse, and they’ve just sold an installation of their technology to Hydro Recovery in Blossburg, PA.

The R3 announcement:
Read More “NY Company Sells Frack Wastewater Technology to PA Site”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | New York | Pennsylvania | Regulation | Statewide NY | Statewide PA

Manhattan Institute Study: Lifting NY Frack Ban Would Mean Billions
May 7, 2013May 6, 2013

$MI fracking study cover$ The New York-based Manhattan Institute, a non-profit think tank with a mission “to develop and disseminate new ideas that foster greater economic choice and individual responsibility,” released a new report yesterday titled, “The Economic Effects of Hydrofracturing on Local Economies: A Comparison of New York and Pennsylvania” (full copy embedded below). The report finds that if New York lifted its moratorium on fracking, it would mean billions of dollars in income for upstate New Yorkers and for the state as a whole.

MI researchers closely examined counties in Pennsylvania and found a) those counties with shale wells did better economically, b) the more wells, the better they did, c) counties with shale wells experienced double-digit rises in per capita income, and d) perhaps most surprisingly, PA counties with no shale wells or fracking saw per capita incomes rise an average 8%! Across the board, fracking has benefited PA enormously and this report proves it. The authors also say NY is screwing itself (our words) if it continues to ban fracking…
Read More “Manhattan Institute Study: Lifting NY Frack Ban Would Mean Billions”
Economic Impact | Exporting | Hydraulic Fracturing | Industrywide Issues | Jobs | Research

Report: Benefits of NatGas Production/Exports for Small Biz
May 6, 2013

The nonpartisan, nonprofit advocacy, research and education organization the Small Business & Entrepreneurship Council (SBE Council) published a new report last week titled “The Benefits of Natural Gas Production and Exports for U.S. Small Businesses” (full copy embedded below). The report looks at the period 2005-2010 and the rocket growth in jobs and new small businesses created by shale drilling in states like OH, PA and WV–three of the ten states highlighted in the report. It also looks forward to the opportunity for small businesses should the U.S. start to export natural gas.

An overview of the report from the SBE Council:
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Economic Impact | Industrywide Issues | Ohio | Statewide OH

OH Company Builds Units to Convert NatGas to Diesel
May 3, 2013May 3, 2013

Ohio company Velocys, located in Plain City, just outside Columbus, has just opened for business and the impact for both the Utica and Marcellus Shale region could be huge. The company makes machines (based on 1920s technology from Germany) that convert natural gas into diesel fuel. Right now diesel is about 6 times more expensive than an equivalent amount of natural gas. Liquefied natural gas (LNG) is starting to come on strong–witness UPS’ announcement last week to purchase 700 new tractor trailers that run on LNG (see UPS to Grow NG Fleet with Additional 700 LNG Tractor Trailers). That’s certainly one very necessary solution.

However, Velocys believes there’s a market to convert natural gas to diesel to feed the already existing market of millions of diesel engines on the roads today. And they’re right…
Read More “OH Company Builds Units to Convert NatGas to Diesel”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | New York | Regulation | Statewide NY

Cuomo: We’re Not Touching the Frack Issue During Economic Talks
May 2, 2013May 2, 2013

Logic has taken a vacation in Albany, NY. Gov. Andrew “The Ditherer” Cuomo is holding closed-door meetings to discuss how to spark economic development in the most taxed, most regulated, least business-friendly and most welfare beneficent state in the country (does that give you a hint why we’re in trouble?).

The one thing Cuomo and the “brains” sitting around the table are not discussing–the one that that would create thousands of new jobs and create billions in economic impact throughout the state? Fracking for clean-burning natural gas…
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Allegheny County | Chevron | Economic Impact | Energy Companies | Industrywide Issues | Jobs | Pennsylvania

Chevron to Build New (Big) Regional HQ in Pittsburgh Suburb
May 2, 2013May 2, 2013

Chevron has just stepped up its commitment to the Marcellus (and Utica) Shale region by purchasing 61 acres, including a Kmart that’s about to close, in Moon Township, PA, a suburb of Pittsburgh. Rumor has it that Chevron will build a new 350,000 square foot office complex that will house upward of 1,750 employees when it’s done. They currently employ around 650 employees in the region, housed at several locations.

Here’s the details that are known:
Read More “Chevron to Build New (Big) Regional HQ in Pittsburgh Suburb”
Economic Impact | Erie County | Industrywide Issues | Jobs | Pennsylvania

NW PA Hose Company Expands, Hires 35 People for Marcellus Work
May 2, 2013May 2, 2013

Yet another example of how the Marcellus and Utica Shale supply chain is putting people back to work–this time in northwestern Pennsylvania’s Millcreeek Township (Erie County). All-American Hose recently hired 25 full-time employees and 10 temps and has reopened a closed plant in the process. Why? To manufacture polyurethane hoses used in the Marcellus and Utica Shale…
Read More “NW PA Hose Company Expands, Hires 35 People for Marcellus Work”
Economic Impact | Hydraulic Fracturing | Industrywide Issues

No. of US Shale Wells Up 44% in 2011, Drilling Money Up 88%
May 1, 2013May 1, 2013

How much money was spent, and how many shale oil and gas wells were drilled in the U.S. in 2011 (the latest year with full statistics)? The American Petroleum Institute, the industry’s largest trade association, knows. And the numbers may surprise you…
Read More “No. of US Shale Wells Up 44% in 2011, Drilling Money Up 88%”
Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

Corbett Story Changes: Decision on PA Cracker Plant Delayed Again
April 29, 2013April 29, 2013

In what looks to be like more backpedaling, PA Gov. Tom Corbett told the Pittsburgh Business Times on Friday he now doesn’t expect a final decision on whether Shell will build a new $2 billion ethane cracker plant in Monaca, PA until 2014. Last December he said Shell needed another six months (until the end of June) for lawyers “dotting I’s and crossing T’s” (see Gov Tom Corbett: Shell Cracker Plant in PA Not “Off the Rails”). Now the story is, “I’ve always thought it would be early next year,” meaning 2014. Hmmm. Then why didn’t he say that last December?

From the Pittsburgh Business Times:

Read More “Corbett Story Changes: Decision on PA Cracker Plant Delayed Again”