Economic Impact 58 - Marcellus Drilling News

New IEA 5-Year Report Says Natural Gas Future is Bright

June 5, 2012June 5, 2012

In a new report released earlier today at the World Gas Conference in Maylasia, the International Energy Agency (IEA) paints a rosy five-year picture for natural gas around the world. You may recall that last week the IEA released their “golden rules” for shale gas drilling (see this MDN story).

The report released today says a quarter of new gas demand over the next five years will come from China, and that electrical generating plants in the U.S. will convert and use gas as much as coal. The IEA also advocates for a global market price for natural gas and hints that a spot price for gas in Asia may be on the way.

From the IEA press release:

Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA

Short Line Railroads Roar Back to Life in Marcellus Region

May 31, 2012May 31, 2012

The renaissance in short line railroads because of shale gas drilling continues. Information from a panel presentation at the recent Pennsylvania Rail Freight Seminar brings us this news:

Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs

AGA Report: The Profound Impact of Shale Gas

May 31, 2012May 31, 2012

Last week the American Gas Association (AGA) released a new economic report detailing that on average, customers saved $175 on their natural gas bills due to the abundant supplies of natural gas in the U.S., mostly from shale gas. Commercial customers saved an average $1,100 per year (see a copy of the full report embedded below).

The report also shows that for 2011, new jobs generated by the shale industry in this country was 150,000—or 9 percent of all new jobs created. Additionally, another 194,000 jobs were held by people who provide goods and services to the shale industry. Astonishing for a single industry to have such a profound impact. As MDN has recently reported, UGI and other utilities are cutting gas rates for customers—drastically. And all because of hydraulic fracturing of shale gas.

Commodity Price | Economic Impact | Industrywide Issues | Muskingum County | Ohio

New Gas-Fired Electric Power Plant in Ohio

May 29, 2012May 29, 2012

Another story about how electric generating plants are switching from coal to natural gas. This one comes from Ohio, where Appalachian Power brought a newly completed gas-fired plant in February near Dresden. Why switch from coal to gas? It’s all in the economics. The cost of coal has skyrocketed from $43.75 per ton in 2007 to $63.78 in 2011, an increase of 46 percent. At the same time, natural gas has gone from over $14 per million Btus to around $2.70 today. Need we say more?

But at what price is it more economical to use coal rather than natural gas? Thanks to Appalachian Power, we now know.

Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA

New Philly Association Formed to Help Businesses Crack the Marcellus

May 23, 2012May 23, 2012

A new association has been formed in the Philadelphia area to connect local businesses with business opportunities in the Marcellus Shale. So far the new association, called the Delaware Valley Marcellus Association (DVMA), consists of four founding member companies, but has plans to expand rapidly.

From the press release announcing the DVMA:

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

Union Support for Marcellus Drilling at PA Rally

May 22, 2012May 22, 2012

The Marcellus Shale Coalition, a Pennsylvania-based industry group headed by Kathryn Klaber, held a rally at the Capitol in Harrisburg on Monday. Their aim was to dispel two popular myths about drilling in the Marcellus Shale: that the jobs are temporary, non-union jobs, and that the jobs all go to out-of-state workers from Texas and Oklahoma.

At the rally to support the Coalition were union members from the Laborers’ International Union of North America, who presented evidence that it’s local, union membership that often fills positions in the Marcellus workforce.

Economic Impact | Hydraulic Fracturing | Industrywide Issues

Injecting Some Realism in the Shale Gas Debate

May 22, 2012May 22, 2012

Writing in the Financial Post, Vaclav Smil, a fellow of the Royal Society of Canada and until 2011 a Distinguished Professor in the Faculty of Environment at the University of Manitoba gives some sage advice on the wild claims on both sides of the shale gas drilling isle:

Commodity Price | Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA

PA Utility Announces Second NatGas Rate Cut This Year

May 18, 2012May 18, 2012

On March 1, a little over two months ago, UGI Penn Natural Gas, a utility which serves approximately 158,000 customers in 13 counties in northeastern and central Pennsylvania, announced it was immediately reducing natural gas rates for its customers by 4.5 percent (see this MDN story). UGI announced yesterday it would file its annual rate on June 1 and it will request yet another 4.5 percent rate reduction on its annual rate which would take effect December 1. That’s a total of 9 percent in one year—thanks to the abundance of PA’s Marcellus Shale gas.

Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs

Behold the Power of Shale Fracking: ND Now #2 US Oil Producer

May 16, 2012May 16, 2012

ribbon - 2nd This is technically not a story about the Marcellus or the Utica Shale. But it’s just as critical. North Dakota has just officially become the number two producer of oil in the United States, displacing Alaska for that spot. Texas still leads with the most oil production.

How on earth as ND become number two? It’s simple: shale and the miracle of hydraulic fracturing. What’s even more startling is that as recently as 1999 ND had zero drilling rigs and oil drilling in the state was dead. Just 13 years later, it’s number two in the nation. The importance of this cannot be overstated.

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

PA Gov. Corbett Outlines How Shale Gas Benefits Everyone

May 15, 2012May 15, 2012

In a recent radio interview, Pennsylvania Gov. Tom Corbett spoke about the Marcellus Shale drilling industry and how it positively impacts all Pennsylvanians, not just just a select few:

Marcellus & Utica Shale Drilling – Coming to Erie, PA

May 15, 2012May 15, 2012

At a seminar in Erie, PA for manufacturers and other companies interested in becoming suppliers to the shale gas industry, Marcellus Shale Coalition president Kathryn Klaber told attendees that it’s just a matter of time before Marcellus and Utica Shale drilling comes to their area.

Location for OH NGL Processing Plant Identified

May 14, 2012May 14, 2012

We now know the specific location of a previously announced $400 million shale gas collection and processing plant being built in Columbiana County, Ohio by a joint venture between Chesapeake Energy, M3 Midstream and EV Energy Partners.

Altoona Scores a New Pump Plant for the Marcellus

May 11, 2012May 11, 2012

Gardner Denver, a 150 year-old global manufacturer of industrial compressors, blowers, pumps, loading arms and fuel systems has a new manufacturing facility to add to the 40 it already owns around the world. The new 70,000 foot facility is located at Tipton, near Altoona, PA. The new plant will manufacture and repair pumps used in hydraulic fracturing in the Marcellus Shale. Gardner Denver expects to employ 100 people at the new plant within a year.

But why locate the plant in Altoona, where there’s very little nearby drilling?

Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA

Penn State Report Shows PA Counties with Drilling Prosper

May 10, 2012May 10, 2012

Penn State Report An economic report released on March 30 by Penn State researchers (copy embedded below) shows that Pennsylvania counties where there is Marcellus Shale drilling do better economically—far better—than other counties.

Marcellus counties bring in more sales tax revenue, a sign that businesses and business owners and the people who have jobs at those businesses are prospering. The more drilling there is in a county, the better the county does economically. And that’s even before Act 13 Marcellus drilling impact fees are collected and distributed.

Industrial Complex near Columbiana, OH Gets Shale Makeover

May 9, 2012May 9, 2012

The former National Refractories complex just outside Columbiana, OH is getting a shale gas makeover. Owner Jerry Stoneburner says the 300,000 square foot facility that sits on 100 acres will become both a shale gas wastewater treatment center and a transfer point to load railroad cars with crude oil and condensate being produced in the Marcellus and Utica Shale.

The AP Calculates 2011 Shale Gas Revenue for PA & WV

May 7, 2012May 7, 2012

The Associated Press (AP) did an analysis of how much natural gas was produced in Pennsylvania and West Virginia during 2011 and have run some basic calculations based on an assumed average price (last year) of $3.50 per thousand BTUs (or mBtus). The results of those calculations should put to bed any claims that shale gas drilling does not have a profound economic impact that touches every resident in a shale gas producing state.

According to the AP analysis: