Economic Impact

Blue Ridge Mtn Res/Magnum Hunter | Economic Impact | Energy Companies | Industrywide Issues | Ohio | Triad Hunter | Washington County (OH)

Magnum Hunter Spends $1M on Office in OH, Here for “Long-Term”
February 12, 2013February 12, 2013

Magnum Hunter Chairman and CEO Gary Evans was on hand Monday in Marietta, Ohio for the grand opening of the new regional office building for Magnum’s Marcellus and Utica Shale subsidiary Triad Hunter. Triad has (so far) leased 85,500 acres in the Marcellus Shale and 81,800 acres in the Utica Shale. The new office is located centrally to both the Marcellus and Utica plays—together referred to as Appalachia.

Triad spent $1 million to remodel a downtown Marietta building that will be their Marcellus/Utica regional headquarters. So far over 40 Triad employees have moved in. Magnum Hunter, through subsidiaries including Triad Hunter, Alpha Hunter, Eureka Hunter, Green Hunter Water and Viking International Resources has its fingers in a lot of different pieces of the drilling pie. According to Gary Evans, their commitment to Appalachia is long-term…

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Economic Impact | Industrywide Issues | Jobs | Ohio | Research | Statewide OH

OH Report Details Shale Drilling’s Huge Impact on Jobs, Economy
February 12, 2013February 12, 2013

The Ohio Dept. of Job and Family Services (Ohio’s welfare agency) issued the very first edition of a new quarterly publication yesterday which tracks the changes in Ohio’s oil and gas industry (see a copy of the first issue embedded below). What did ODJFS find with regard to the oil and gas industry’s impact on Ohio? Jobs in the oil and gas fields are up 17% from 2011 to 2012. The average salary across all the shale-related industries in Ohio is $73,934 per year. Those with jobs extracting oil in Ohio’s shale are making over $100K per year.

In short, the Utica and Marcellus Shale in Ohio has been a jobs and economic boom for the state:

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Economic Impact | Industrywide Issues | Jobs | Statewide WV | West Virginia

Research Shows WV Marcellus Drilling Equals High Paying Jobs
February 12, 2013February 12, 2013

According to Jeffrey Green, director of research for WorkForce West Virginia, oil and gas jobs, mostly in the Marcellus Shale, grew by 9.5% from 2008 to 2011. The average annual wage for gas industry workers in West Virginia? $70,082 per year—and increasing each year.

Green share a number of statistics with WV lawmakers on Monday:

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Economic Impact | Electrical Generation | Industrywide Issues | Lawrence County | Pennsylvania

NW PA Town Approves Site for Marcellus-powered Electric Plant
February 8, 2013February 8, 2013

North Beaver (Lawrence County), PA supervisors have approved a request from LS Power Development to build a new $750 million electric generating plant at a former manufacturing site along the Mahoning River. The new 900-megawatt plant, when built, will be powered by Marcellus Shale natural gas. Current plans call for the new plant to be online by 2016.

More details:

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Economic Impact | Industrywide Issues

80,000 Locations Left to Go for Marcellus Drilling
February 4, 2013February 4, 2013

Speaking at the Marcellus-Utica Midstream conference last week in Pittsburgh, ITG Investment Research analyst Manuj Nikhanj said their research shows there are an astounding 80,000 locations still drillable in the Marcellus Shale, and that the Marcellus is “absolutely massive” and dwarfs the next biggest shale play. How long will it take to full drill the Marcellus? “Decades.”

He also had some interesting analysis on the question of what natural gas price is breakeven for drillers to make a profit:

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Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Pennsylvania | Processing Plants | Shell | Statewide PA

Gov Tom Corbett: Shell Cracker Plant in PA Not “Off the Rails”
February 1, 2013February 1, 2013

Shell was supposed to purchase land in Monaca (Beaver County), PA to build a new $2 billion ethane cracker plant (a multi-year project) by Dec. 31, 2012, but instead Shell and the owner of the site signed a six-month extension to (according to a Shell spokesperson) give Shell more time to assess the site’s suitability and time to crunch the numbers to provide Shell “confirmation that the project is economically robust and competitive” (see Shell Ethane Cracker in PA Still Not a Done Deal).

The six-month delay has led to rumors that the deal for Monaca may be in doubt. Wednesday after a speech at the Marcellus Midstream Conference in Pittsburgh, PA Gov. Tom Corbett said contrary to those pesky rumors, Shell is not checking out other states to build the ethane cracker plant and that the delay in purchasing the land is due to lawyers “dotting I’s and crossing T’s.” Here’s how it played out:

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Economic Impact | Industrywide Issues | Marshall County | Ohio County | Supply Chain | West Virginia

Strange/Interesting Things Companies Sell to the Shale Industry
February 1, 2013February 1, 2013

It never ceases to amaze MDN the kinds of businesses that benefit from Marcellus and Utica Shale drilling. Here’s yet another one we bet you didn’t know about: The West Virginia manufacturer sells a 6,000-pound “cattle stop” to the Marcellus and Utica drilling industry.

Er, what is a cattle stop, and who does this manufacturer sell them to? Read on…

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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Stark County | Utica Shale

Stark County, OH Labor & Business on Same Page: Frack Here
February 1, 2013February 1, 2013

When was the last time local governments, labor unions, businesses, chambers of commerce and construction contractors were all on the same page? Yeah, we can’t remember that time either. Except it’s here—now. And it’s happening in Stark County, Ohio were all of those groups have come together to kick off a new initiative they call Choose Stark—an outreach to encourage Utica Shale drilling and fracking in Stark County.

We say that’s pretty cool and a lesson for other regions to consider:

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Economic Impact | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Pennsylvania | Range Resources Corp | Statewide PA

Royalty Payments to PA Landowners Create Big Impact
January 28, 2013January 28, 2013

An analysis by AP finds royalty payments to landowners in Pennsylvania are quickly catching up to royalty payments to landowners in other oil and gas states like Alaska and Wyoming. The National Association of Royalty Owners (NARO) said PA is their fastest growing chapter.

How much in royalty payments were PA landowners paid (collectively) for 2012? What’s the average percentage landowners are paid? And which driller has paid more than $1 billion in royalties to PA landowners since 2008? Some answers about royalties in general, and PA in particular…

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Columbiana County | Economic Impact | Energy Services | Industrywide Issues | M3 Midstream | Momentum | Ohio | Processing Plants

Columbiana County NGL Plant Creates Economic Boom
January 28, 2013January 28, 2013

More evidence of just how much the shale drilling industry impacts local businesses (the “supply chain” effect) comes from the new $400 million natural gas liquids processing plant being built in Columbiana County, OH. We reported in December the plant was on track for an “aggressive” May 2013 start date (see Columbiana County NGL Plant On Track for May Opening). The company building the plant, M3 Midstream (also known as Momentum), has revised the start date slightly to June.

Momentum’s construction coordinator Baron John gives an update on progress in building the plant, and offers a few examples of how far and wide the project has already impacted the local economy:

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Economic Impact | Energy Services | Enterprise Products Partners | Ethane | Fairfield County | Industrywide Issues | Ohio | Pipelines

OH Airport Receives $450K Check to Allow Ethane Pipeline
January 23, 2013January 23, 2013

In early December, MDN told you about a deal the Fairfield County (Ohio) Airport was contemplating to allow the ATEX Express ethane pipeline to be built under airport property (see ATEX Express Ethane Pipeline Will Pay OH Airport $450K). Fairfield County commissioners signed the deal yesterday and received a check for $450,000.

What do the commissioners plan to spend the money on, and when will construction on the pipeline under airport property begin?…

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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs

IHS Report from Davos: U.S. Shale Energy is Changing the World
January 22, 2013January 22, 2013

Research company IHS, which has produced many excellent reports over the year, particularly in the area of energy, is releasing a brand new report titled Energy and the New Global Industrial Landscape: A Tectonic Shift later this week at the World Economic Forum in Davos, Switzerland. A copy of the Executive Summary for the new report is embedded below.

According to the new report, unconventional energy in the U.S.—shale gas and tight oil plays—is changing not only the U.S. but the world by reviving U.S. manufacturing, creating 1.7 million jobs here at home and adding $62 billion to federal and state coffers—and that’s just for 2012!

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Economic Impact | Industrywide Issues | Jobs | Pipelines | Processing Plants

Part 3 Chamber’s Shale Study: “Mind Blowing” for Jobs, Economy
January 17, 2013January 17, 2013

In an interview with the Charleston Daily Mail, the U.S. Chamber of Commerce’s vice president for policy, Christopher Guith, called the soon-to-be-released third part of a study looking at the impact of the Marcellus and other shales “mind blowing” when it comes to the economic impact from midstream (pipelines) and downstream (petrochemicals) as they heat up in the coming years. In other words, you ain’t seen nothing yet…

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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs

Study Says NE States with Fracking Have Better Credit Ratings
January 16, 2013January 16, 2013

The Kroll Bond Rating Agency has just released an update to a report they originally authored in January of last year titled, Fracking the Marcellus and Utica Basins: Potential Credit Implications. While not taking a position on whether or not fracking in the Marcellus and Utica Shale is good or bad per se, they do say their analysis shows fracking in the Marcellus and Utica Shale is very good for the credit ratings of municipal and state governments where fracking is allowed. Fracking is also jobs-creating engine according to the independent report.

From the Kroll announcement:

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Economic Impact | Electrical Generation | Industrywide Issues | Pennsylvania | Statewide PA

NJ Electric Generating Plant Powered by PA Marcellus Gas
January 4, 2013January 4, 2013

Although New Jersey seems hell-bent on opposing pipelines for low-cost Marcellus Shale gas (and would never tolerate fracking of their pristine soil), the state continues to benefit from Pennsylvania’s Marcellus Shale. The latest example is a brand new electrical generating plant currently being built in West Deptford Township. The new 738 megawatt plant will go online in 2014 and will be powered by—yep—PA Marcellus Shale gas, generating low-cost electricity for the residents of New Jersey. Can anyone say “hypocrites?”

An announcement from the company that will supply the new plant with low-cost Marcellus Shale gas to power it for the next 15 years:

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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH | Utica Shale

OH Utica Shale Drilling Will Continue Rapid Expansion in 2013
January 2, 2013January 2, 2013

Some interesting facts about Ohio Utica Shale drilling for 2012, and predictions for 2013…Fact number one: There are 45 producing horizontal Utica Shale wells in Ohio as of Dec. 31, 2012. They produce 40% as much natural gas as all 64,000 vertical-only natural gas wells in the state produce. (You read that right!) Conclusion: When Ohio reaches 113 producing Utica Shale wells (sometime in 2013), it will equal the entire natural gas production of all 64K vertical natural gas wells in the state. Behold the miracle of hydraulic fracturing.

Here’s a few more fascinating facts about Ohio’s Utica Shale drilling in 2012, and predictions for what’s ahead in 2013:

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