Economic Impact

Economic Impact | Industrywide Issues | Landfills | Pennsylvania | Statewide PA

Marcellus Well Pad Liners Get Recycled
July 26, 2012July 26, 2012

Every Marcellus Shale well drilled has a heavy-duty plastic liner. When the well is finished being drilled, that plastic liner is usually disposed in a landfill. An interesting new joint venture between two Pennsylvania companies, WellSpring Environmental Services and Ultra-Poly Corporation, aims to recycle those pad liners. According to the companies, they will remove 20 million pounds of plastic well pad liner each year from the waste stream and ultimately turn it into products like composite railroad ties and building materials. The Pennsylvania Dept. of Environmental Protection has already granted the two companies their blessing (and permission) for the plan.

Once again capitalism and the free market (not government regulation) solves the problem. From the WellSpring news release:

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Economic Impact | Energy Services | GE Oil & Gas | Industrywide Issues | Jobs | Ohio | Stark County

How Many GE Employees will Come to Canton, OH?
July 19, 2012July 19, 2012

Although Chesapeake is leaving town, moving the majority of its 200 employees who work in offices in Canton to a new facility they’re building 7 miles away in Louisville (see this MDN story), it’s not all bad news for Canton.

GE will build a new facility in Canton where some 30 new jobs will be created to manage GE’s area Marcellus and Utica Shale operations. But it’s going to cost Canton up to $84,000 per year for five years to seal the deal.

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Commodity Price | Economic Impact | Hydraulic Fracturing | Industrywide Issues

Harvard Study: Shale Drilling Means Oil Prices Heading Lower
July 18, 2012July 18, 2012

A Harvard University study published in June takes a look at oil and makes the bold prediction that world oil prices will go down, substantially, by 2020. Why? You guessed it—the miracle of hydraulic fracturing of shale, particularly in the U.S.

The study, titled “Oil: The Next Revolution – The Unprecedented Upsurge of Oil Production Capacity and What it Means for the World,” (see below), says the Bakken/Three Forks play in North Dakota and Montana “could become a big Persian Gulf producing country within the United States.” And that’s just one play, out of 20!

Although this Harvard study is focused on oil, and MDN is largely focused on natural gas, the study highlights the critical role played by shale formations, and drilling in shale, sometimes the same well bore, delivers not only natural gas but natural gas liquids and oil. So this study and it’s conclusions are well worth your time to review. Notice the chart on page 13 of the PDF file (page 3 of the report): It shows the U.S. pulling very close to Saudi Arabia in oil production by 2020. Astonishing!

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Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Westmoreland County

The Shale Multiplier Effect – One Company’s Success Story
July 17, 2012July 17, 2012

Mitt Romney will make a campaign stop later this week in North Huntingdon (Westmoreland County), PA. The “news” about that stop for MDN is not Romney’s visit, but the company he’s visiting—Horizontal Wireline Services. It’s news because it’s a shale services company that didn’t exist prior to 2010, but today employs over 100 people at starting salaries of $60,000-$80,000. The company was started with no government assistance, and financed by a private investor (the banks wouldn’t touch it).

The company’s 35 year-old founder, Joseph Sites, graduated from the University of Pittsburgh with a degree in chemical engineering in 2000, but he left PA because of no job prospects. He returned in 2010 to found Horizontal Wireline which runs wires into gas and oil wells to help with extraction.

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Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Statewide PA

PA Companies Expanding Because of the Marcellus
July 17, 2012July 17, 2012

Many small and medium-sized businesses are looking to become suppliers to the Marcellus and Utica Shale drilling industry—in business it’s called becoming part of the “supply chain.” One of the organizations dedicated to making that happen is the Pittsburgh-based Marcellus Shale Coalition (MSC), headed by Kathryn “Katie” Klaber. MSC recently released supply chain recommended practices for businesses who want to participate (see this page on the MSC website).

As part of their supply chain initiative, MSC released a list of business testimonials—short descriptions and statements from companies that participate in the Marcellus Shale supply chain—how they participate and how it’s led to an expansion of revenue and jobs. The companies on this short list have collectively invested and generated hundreds of millions of dollars for the PA economy, and produced thousands of jobs. Their stories are embedded below.

On the list are engineering firms, consultants, manufacturers, law firms and more. Perhaps this list, and the success stories from these companies, will spark ideas for your company and how you can plug in to the Mighty Marcellus supply chain.

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

Ohio’s Utica Shale Attracts Japanese Companies to Region
July 17, 2012July 17, 2012

Kuninori Matsuda, consul-general of Japan for Detroit, spoke to the Findlay, OH Rotary Club yesterday. His speech touted Ohio as a business-friendly state and he said that Japanese companies are interested in Ohio in part because of the Utica Shale and the cheap energy it produces.

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BP | Economic Impact | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Jobs | Ohio | Statewide OH

BP CEO Visits Ohio to Talk About Shale Drilling
July 16, 2012July 16, 2012

The CEO of BP, Bob Dudley, visited Cleveland last Friday to talk about BP’s massive investment in Ohio’s Utica Shale—and what that investment will mean in the way of jobs for Ohio. He also had an eye-opening statement about just how much energy is currently being produced from shale plays in the U.S.

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Economic Impact | Industrywide Issues | Jobs | Ohio | Statewide OH | Trumbull County

The Economic Revival of Warren, OH Thanks to Shale Drilling
July 16, 2012July 16, 2012

Yet more evidence that when shale drilling arrives, so do jobs and economic expansion. This time the evidence comes from Warren, Ohio.

From the number of area residents hired by the drilling industry in new jobs, to increased business for restaurants, an increase in new car sales, an increase in new home sales and even an uptick in tax revenues—all of the economic indicators in eastern Ohio are trending up—amidst the worst economy since the 1920s. Why? Shale drilling on private land.

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Commodity Price | Economic Impact | Industrywide Issues

Natural Gas Ties Coal in Generating Electricity in U.S.
July 16, 2012July 16, 2012

What’s the number one energy source used to create electricity in the United States? If you answered “coal” you would have been right—up until very recently. Natural gas’ use to generate electricity has now tied coal—something that hasn’t happened in at least 40 years.

And with strict new federal EPA rules in place, there’s virtually no chance new electric generating plants powered by coal will be built. To build a new coal-fired plant compliant with emissions levels by the EPA would be too expensive to make it profitable.

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Economic Impact | Energy Services | Industrywide Issues | NiSource | Ohio | Pipelines | Statewide OH

NiSource Announces $4B Upgrade Plan for Interstate Pipelines
July 13, 2012July 13, 2012

Midstream and utility company NiSource is in the news for a second time this week. On Monday, NiSource announced a joint venture with Hilcorp to build new Utica Shale gathering pipelines and a processing plant in eastern Ohio and western Pennsylvania (see this MDN story).

Yesterday NiSource announced a new project to rebuild and upgrade 12,000 miles of its Columbia Gas Transmission interstate pipelines and compressor stations to the tune of $4 billion over the next 15 years. Much of that work will benefit the Marcellus and Utica Shale region, resulting in more shale gas finding its way to market, according to NiSource.

NiSource reps, federal government officials and the Mayor of Columbus held a press conference yesterday to talk about this major new initiative by NiSource. Below is the follow-up press release, rearranged by MDN to show the important information first:

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Delaware County (PA) | Economic Impact | Energy Services | Industrywide Issues | Pennsylvania | Processing Plants | Sunoco Logistics

Marcellus to the Rescue: Marcus Hook Refinery to Reopen
July 12, 2012December 19, 2012

The Marcus Hook Refinery in the Philadelphia, PA area was closed down in April. Owned by Sunoco, it is one of three refineries in the greater Philly area. A few weeks ago MDN told you about a study that Marcus Hook and Delaware County spent $100,000 on detailing potential uses and markets for the refinery (see this MDN story).

At the time, MDN asked the question if the Marcellus Shale would save the Marcus Hook refinery. Looks like it did. Yesterday, PA Gov. Tom Corbett’s office announced that some of the Marcus Hook Refinery assets have been purchased by Braskem America. Braskem will use it to manufacture polypropylene plastics. The press release says Braskem will secure feedstocks (raw materials) from “multiple sources,” without naming those sources. You can be sure natural gas liquids from the Marcellus and Utica Shale will be a big source—perhaps the main source—for the refinery.

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Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Statewide PA

PA Legislature Reaches Deal on Tax Credit for Cracker Plant
June 29, 2012June 29, 2012

A deal has been struck by the Republican majority legislature in Pennsylvania to grant Shell a tax credit over a 25-year period starting in 2017. Gov. Tom Corbett had originally proposed the tax credit be capped at $66 million per year, or a total of $1.7 billion, but the final version of the law, if passed, places no limit on the total amount other than a credit of five cents per gallon of ethane used. So the total deal may exceed $66 million per year.

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Delaware County (PA) | Economic Impact | Energy Services | Industrywide Issues | Pennsylvania | Processing Plants | Sunoco Logistics

Will Marcellus Shale Save Philly Marcus Hook Refinery?
June 28, 2012June 28, 2012

Last year the Philadelphia region was hard-hit when both Sunoco and ConocoPhillips announced they would shut down a combined three refineries in the area. Since then, ConocoPhillips sold its refinery for $180 million to Delta Air Lines which will convert and use the plant for jet-fuel production. Sunoco is in talks to sell its one of two refineries (in Philly) to a joint venture headed by the Carlyle Group—but if that doesn’t develop, they’re going to shut it down.

And then there’s the Marcus Hook refinery, which closed it doors “for good” in April. Officials from the town of Marcus Hook and Delaware County are working hard to get it reopened. As part of that process, they commissioned a $100,000 study, just released, from IHS Consulting. The study identifies seven possible uses for the idled refinery, and pegs its best chances of reopening based on the abundance of natural gas and gas liquids coming from the Marcellus and Utica Shale region.

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Accidents | Economic Impact | Hydraulic Fracturing | Industrywide Issues

Yale Study Finds Shale Gas Benefits Outweigh Costs 400 to 1
June 27, 2012June 27, 2012

Oh oh, this isn’t supposed to happen…A group of Yale economics graduates together with a Yale professor have written a detailed and well-researched paper refuting the mighty New York Times and concluding that the benefits of shale gas are enormous and should continue.

The 12-page paper, titled “The Arithmetic of Shale Gas” is embedded below. The authors of the paper consider both the economic benefits and the costs, including environmental damage, and make the following observation:

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Economic Impact | Industrywide Issues | New York | Ohio | Pennsylvania | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

Energy Execs Rank Drilling Locations Including WV, OH, PA, NY
June 27, 2012June 27, 2012

Each year, the Canadian-based Fraser Institute surveys petroleum industry executives and managers (623 of them for 2012) 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?

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. The rankings for this year are interesting and illustrative that politicians’ words and legislation have a direct bearing on where, and how much, drilling companies are willing to spend.

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Economic Impact | Industrywide Issues | Muskingum County | Ohio

Businesses Form Coalition to Reach Drilling Industry in OH
June 25, 2012June 25, 2012

Businesses in Muskingum County, Ohio are banding together to form a coalition to market themselves to the Utica Shale drilling industry that’s just getting started in the area.

Backed by the Zanesville-Muskingum County Chamber of Commerce, the new group, called the Muskingum Oil and Gas Coalition, currently has 28 member companies. They want to get to 130 members. Members pay $300 per year in dues to fund the new group.

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