Economic Impact

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:
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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:

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Economic Impact | Energy Services | Industrywide Issues | Kinder Morgan | Ohio | Processing Plants | Tuscarawas County

New Processing/Fractionation Plant Coming to Tuscarawas County OH
April 29, 2013April 29, 2013

MDN first told you about a new natural gas processing and fractionation plant that may be coming to Tuscarawas County, OH back in early March (see Kinder Morgan to Build Processing & Fractionation Plants in OH?). Good news for Ohioans—Kinder Morgan has confirmed that the necessary EPA permits have been secured and once they have customers lined up, they plan to move forward with construction…

Read More “New Processing/Fractionation Plant Coming to Tuscarawas County OH”
Economic Impact | Industrywide Issues | Mahoning County | Ohio

Youngstown, OH Airport Looks to Add Regular Houston, TX Flights
April 25, 2013April 25, 2013

Yet another positive sign for the Ohio Utica Shale. The Youngstown-Warren (OH) Regional Airport is looking to add direct flights to and from Houston, TX. They’ll likely begin with a regular, chartered service and after that, add a permanent route…

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Belmont County | Chesapeake Energy | Economic Impact | Energy Companies | Industrywide Issues | Ohio | Utica Shale

Chesapeake Opens New Regional Office in Belmont County, OH
April 23, 2013April 23, 2013

Chesapeake Energy has just opened a new field office in Belmont County, OH at the Fox Commerce Park, just west of St. Clairsville:

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Economic Impact | Industrywide Issues | Research | Trucking

Three Ways the Shale Boom will Impact the Trucking Industry
April 22, 2013April 22, 2013

In January, MDN told you about the results of a survey conducted by Benesch, a large law firm with offices in Ohio, Pennsylvania and other oil and gas states, the National Tank Truck Carriers association and the Ohio Trucking Association (see Marcellus/Utica Shale Drilling is Good for Trucking Industry). The survey found shale activity is having a positive impact on the trucking industry, creating an increase in opportunities and profits that is expected to continue into the future. The survey also found significant job growth is a byproduct of shale drilling.

Benesch has written and released a new white paper based on the findings of the survey (embedded below), titled: “3 Ways the Shale Boom Will Impact the Trucking Industry.” The paper is short, well-written, and shows how the growth in trucking is directly tied to the growth in shale drilling—and a harbinger of economic growth for the future…

Read More “Three Ways the Shale Boom will Impact the Trucking Industry”
Economic Impact | Industrywide Issues | Luzerne County | Pennsylvania | Supply Chain

Air Products in Wilkes-Barre, PA – A Shale Gas Success Story
April 15, 2013April 15, 2013

Air Products is located on the outskirts of Wilkes-Barre, PA. If you’ve ever heard of the Air Products business, you may conjure up an image of small cylinder tanks of helium or other "rare" gases sitting inside a chain fence. Yes, Air Products sells gases by the tank, but they also manufacture the mother of all gas tanks, and that’s where the shale gas business comes in…

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Economic Impact | Industrywide Issues | Regulation | Taxation

API Says Obama Budget Punishes Oil & Gas Industry, Destroys Jobs
April 12, 2013April 12, 2013

The American Petroleum Institute is not impressed with the budget recently released by President Obama. They point out the way Obama (once again) attempts to punish the oil and gas industry. In typical Democrat fashion, Obama wants to slap higher taxes on oil and gas. Of course anything you tax you get less of, which is exactly the wrong thing to do in the jobless Obama economy. Some people never learn.

Since Obama trotted out a retread of last year’s budget, the API decided to simply re-issue their statement from last year too. Clever…

Read More “API Says Obama Budget Punishes Oil & Gas Industry, Destroys Jobs”
Economic Impact | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Baker Hughes Rig Counts Hit New Low, But There’s More to Story…
April 8, 2013April 8, 2013

Energy analyst and Seeking Alpha blogger Richard Zeits has authored a new “required reading” article titled, “Natural Gas: Sharp Recent Drop In Baker Hughes Gas Rig Count Explained.” In his new article, Zeits says that although the Baker Hughes rig count (number of active drilling rigs in the U.S.) has reached a new low as of last Friday—only 375 active rigs—the rig count itself does not tell the whole story. With a series of stunning charts, Zeits explores the big change from rigs drilling for natural gas to rigs drilling for oil…

Read More “Baker Hughes Rig Counts Hit New Low, But There’s More to Story…”
Blair County | Economic Impact | Energy Services | Industrywide Issues | Marcellus GTL | Pennsylvania | Taxation

Altoona Gas to Liquids Plant Will Qualify for 7-Year Tax Break
April 8, 2013April 8, 2013

Marcellus GTL announced a few weeks ago they plan to build a $200 million gas to liquids (GTL) plant near Altoona, PA that will convert natural gas into gasoline and propane (see Altoona Area Getting $200M Marcellus Gas-to-Liquids Plant). If they start building by the end of this year, the company will qualify for up to seven years of tax abatement. That’s a pretty powerful reason to get building…

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Economic Impact | Guest Post | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Susquehanna County

Guest Post: Susquehanna County’s Astonishing Resource Potential
April 4, 2013April 5, 2013

The following article was written by MDN friend and prolific contributor of links and story ideas, Chris Acker. Chris splits his time between Montrose, PA (in Susquehanna County) and Savannah, GA. Here is his biography from the Seeking Alpha website:

Christopher Acker, Geological Engineer with an MBA, grew up in the oil fields of Venezuela where his father, a petroleum engineer, was a drilling contractor for all the major players, onshore and off. Chris’ interest in energy economics and policy found him working for Exxon, Petroleum Industry Research Associates and Petroleos de Venezuela. He bought a parcel of land in the PA countryside twenty-five years ago and later semi-retired to work on antique pianos. See www.PianoGrands.com. A few years ago, it was established that Chris’ property in Susquehanna County sits atop one of the Marcellus shale’s most prolific areas. He is now happily engaged once again in energy economics, with emphasis, naturally, on gas.

Here is Chris’ thoroughly researched, extensively footnoted, superb analysis of Susquehanna County’s potential Marcellus Shale natural gas yield…

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