Economic Impact

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:

Read More “Study Says NE States with Fracking Have Better Credit Ratings”
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:

Read More “NJ Electric Generating Plant Powered by PA Marcellus Gas”
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:

Read More “OH Utica Shale Drilling Will Continue Rapid Expansion in 2013”
Economic Impact | Health Impacts | Industrialization | Industrywide Issues | Lycoming County | Pennsylvania

PA Hospital Loses Money Covering Uninsured Marcellus Workers
December 27, 2012December 27, 2012

A small non-profit hospital in north-central PA will turn in its first operating loss in five years. The main reason for the loss this year, according to the hospital’s CEO? Marcellus Shale field workers who come to the hospital for treatment—workers without health insurance:

Read More “PA Hospital Loses Money Covering Uninsured Marcellus Workers”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Monroe County | Ohio

Utica Drilling Resurrects Railroad in Monroe County, OH
December 24, 2012December 24, 2012

Yes, MDN is a sucker for a good railroad story—always has been. And here’s another one…

A 12-mile short line railroad in Monroe County, Ohio will soon roar back to life after being closed for 10 years—thanks to Utica and Marcellus Shale drilling:

Read More “Utica Drilling Resurrects Railroad in Monroe County, OH”
Economic Impact | Housing | Industrywide Issues | Pennsylvania | Washington County

Marcellus Workers First to Get Studio 6 Motel in PA
December 24, 2012December 24, 2012

Author Tom Bodett is perhaps best known for commercials in which he’s the spokesman for a motel chain, using the phrase, “We’ll leave the light on for ya.” Quick: Which motel chain is it? If you said “Motel 6,” you would be correct. So you’ve heard of Motel 6, but have you ever heard of Studio 6? Probably not—but you soon will.

Studio 6 is a long-stay motel started by Motel 6—think something between a hotel room and a small apartment. The state of Pennsylvania is about to get it’s very first Studio 6. And where might you think it’s being built? Philadelphia? Harrisburg? Pittsburgh? Nope. It’s being built halfway between Pittsburgh and Washington, PA (so to be fair, it is in the Pittsburgh “orbit”). But PA’s very first Studio 6 is not being built for business travelers—it’s being built for those working in the Marcellus Shale drilling fields of western PA.

Read More “Marcellus Workers First to Get Studio 6 Motel in PA”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio | Utica Shale

The Undeniable Progress from Utica Shale Drilling
December 24, 2012December 24, 2012

The Warren, Ohio Tribune Chronicle ran an editorial yesterday that takes a look at the profound impact Utica Shale drilling has had on the Mahoning Valley area of Ohio. As part of that editorial, they make the following worthwhile (and astute) observations:

Read More “The Undeniable Progress from Utica Shale Drilling”
Chesapeake Energy | Economic Impact | Energy Companies | Industrywide Issues | Jobs | Ohio | Statewide OH | Utica Shale

Status Report on Chesapeake’s Utica Shale Drilling Program
December 21, 2012December 21, 2012

Chesapeake Energy is the second largest natural gas producer in the United States, behind ExxonMobil. If you’ve followed the shale gas drilling space for any length of time, you no doubt have heard about Chesapeake’s “problems” this past year. Their main problem is overextension: Leasing too much acreage without possessing enough money to drill on it. A further complication has been the low price of natural gas, meaning Chesapeake doesn’t make as much profit when they do drill. Too many bills to pay, not enough cash to pay them. The solution? Sell some of your assets.

Read More “Status Report on Chesapeake’s Utica Shale Drilling Program”
Economic Impact | Industrywide Issues | Jobs | Ohio | Statewide OH | Utica Shale

United Airlines Beginning Flights from OK to OH
December 21, 2012December 21, 2012

Don’t tell Ohio Gov. John Kasich, but more “foreigners” (i.e. out-of-state oil and gas workers) are coming to Ohio, and they’re doing it using (gasp) commercial airlines. Call the TSA! Beef up the border guards! If you’re not quite sure what MDN is referring to, see this MDN story for background.

A sure sign that Ohio’s Utica Shale is undergoing a rapid expansion is that United Airlines has just announced they will begin offering nonstop flights between Oklahoma City and Cleveland in February. The new flights begin on Valentine’s Day—giving Gov. Kasich a big metaphorical kiss on the smacker. Here’s the new news:

Read More “United Airlines Beginning Flights from OK to OH”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | Research

New Report: Fracking Creates Jobs in States with No Drilling
December 20, 2012December 20, 2012

In October, global research company IHS released the first (of three) volumes in a new study titled America’s New Energy Future: The Unconventional Oil and Gas Revolution and the Economy (see this MDN story). Yesterday they released Volume 2 of the study which focuses on the economic contributions from the Lower 48 states—from both states where there is unconventional drilling, as well as from states without unconventional drilling. Yes, jobs and economic benefits are generated in non-drilling states thanks to the borders they share with those that do have drilling.

Volume 2 of the study finds that of the states with no unconventional drilling, New York leads the pack in the number of jobs created for its residents as a result of unconventional drilling (thank you Pennsylvania!). Of those states that do have unconventional drilling (i.e. they allow high volume fracking), Texas leads the way in job creation, followed by Pennsylvania. The study also finds that by 2025 Ohio (because of the Utica Shale) will become the third most job-creating state when it comes to the oil and gas industry.

Read More “New Report: Fracking Creates Jobs in States with No Drilling”
BP | Economic Impact | Energy Companies | Industrywide Issues | Mahoning County | Ohio | Trumbull County | Utica Shale

BP Moves into New Utica Shale Digs, Drilling Starts January
December 18, 2012December 18, 2012

Important Update: BP will not start drilling test wells until April 2013, not January as indicated in the headline (and as quoted in the story below). The news source quoted by MDN was inaccurate! Many thanks (and a hat tip) to MDN friend Andrea Wood, Publisher of the Youngstown Business Journal, for taking the time to notify us of the error.

BP announced yesterday they have begun moving into the company’s new “Utica Operations Center,” a 5,000 square foot office space with 38,000 sq ft of warehouse/storage space located in the Youngstown Commerce Park in North Jackson (Mahoning County), Ohio. BP aggressively leased Ohio Utica Shale acreage during 2012—signing up some 100,000 acres of leases this year. Of the Ohio acreage leased by BP, the vast majority (84,000 acres) is in Trumbull County, close to the new office space.

Ohio landowners who signed with BP, and businesses interested in supplying BP with products and services, will be interested to know BP plans to start drilling their first Utica Shale test wells in January 2013 (more details below).

Read More “BP Moves into New Utica Shale Digs, Drilling Starts January”
Economic Impact | Energy Services | Industrywide Issues | Ohio | Pennsylvania | Stantec | Stark County | Washington County

Canadian Firm Buys PA Marcellus Survey/Mapping Company
December 17, 2012December 17, 2012

Canadian firm Stantec, which provides consulting service in engineering, surveying and environmental sciences, announced on Friday that they have bought out Landmark Survey and Mapping. Landmark, with 24 employees in both Washington, PA and North Canton, OH, specializes in surveying and mapping oil and gas pipelines—a growing area of focus for Stantec.

From the announcement:

Read More “Canadian Firm Buys PA Marcellus Survey/Mapping Company”
Economic Impact | Industrywide Issues | Mahoning County | Ohio

Road Trip! Youngstown, OH Chamber Goes to Houston, TX
December 17, 2012December 17, 2012

The Youngstown-Warren (OH) Regional Chamber of Commerce went on a road trip last week—to Houston, TX. The Regional Chamber is aggressively marketing the Mahoning Valley area as the supply chain hub for the Utica and Marcellus Shale—encouraging Houston companies to open operations in their area to leverage an abundance of low-cost natural gas and natural gas liquids.

Chambers of Commerce and economic development agencies from other locales would do well to follow their example:

Read More “Road Trip! Youngstown, OH Chamber Goes to Houston, TX”
Economic Impact | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Jobs | Mahoning County | NiSource | Ohio | Pipelines | Processing Plants

Mahoning Utica Pipeline/Processing Plant “Moving Forward”
December 13, 2012December 13, 2012

Back in July, MDN told you about a new joint venture between Hilcorp and NiSource to build a wet gas pipeline and processing plant in the Youngstown, Ohio area (see this MDN story). There is still no official location (yet) for the new project, which will cost between $300 and $500 million to build, but we now have a name for it: the Hickory Bend Pipeline System.

According to a NiSource spokesperson, Hickory Bend (the pipeline and the processing plant) is “moving forward.” What does that mean? It means the Mahoning Valley will soon see a big boost in jobs for construction workers and welders:

Read More “Mahoning Utica Pipeline/Processing Plant “Moving Forward””
Economic Impact | Industrywide Issues | Ohio | Pipelines | Processing Plants | Statewide OH | Utica Shale

$10 Billion+ in Utica Shale Infrastructure Coming to Ohio
December 10, 2012December 10, 2012

The Akron Beacon Journal ran an excellent round-up article on Sunday looking at the mammoth infrastructure investments (pipelines, processing facilities, etc.) being made in Ohio’s Utica and Marcellus Shale region—like in excess of $10 billion of investments already under way or planned for the near future.

Here’s a quick overview:

Read More “$10 Billion+ in Utica Shale Infrastructure Coming to Ohio”
Economic Impact | Exporting | Industrywide Issues | Research

DOE Study: LNG Exports Under All Scenarios are a Good Thing
December 7, 2012December 7, 2012

The Dept. of Energy – Office of Fossil Fuels commissioned a research report earlier this year by the venerable NERA Economic Consulting. The study, released to the public yesterday and titled, “Macroeconomic Impacts of LNG Exports from the United States” (full copy embedded below), takes a look at liquefied natural gas (LNG) exports from the U.S. NERA considers multiple scenarios of low price/high price, low volumes/high volumes, etc., and concludes that there is no downside to exporting natural gas, and in fact, the more we export, the better.

Why is this NERA report important? Because the DOE will use it as part of their decision-making process about whether or not to approve requests to build LNG export facilities. There are currently 15 such requests before the DOE. If all 15 facilities were approved, it would provide for 8 trillion cubic feet of natural gas to be exported per year.

Read More “DOE Study: LNG Exports Under All Scenarios are a Good Thing”