Economic Impact 65 - Marcellus Drilling News

New York Will See $11.4 Billion in New Investment, $1.4 Billion in New Tax Revenue, and 18K New Jobs if the Fracking Moratorium is Lifted

June 8, 2011June 8, 2011

New York State will see a huge $11.4 billion in economic investment by 2020, with state and local governments receiving $1.4 billion in new tax revenues, as well as 15,000-18,000 new jobs created if the current moratorium preventing Marcellus Shale drilling is lifted, according to a report released yesterday by the award-winning think tank Manhattan Institute for Policy Research.

The report, titled “The Economic Opportunities of Shale Energy Development,” projects an additional (and astonishing) 75,000-90,000 jobs would be created if the Utica Shale is tapped. (The Utica Shale requires horizontal hydraulic fracturing as does the Marcellus Shale.)

Economic Impact | Energy Companies | Industrywide Issues | Jobs | Shell

Shell Commits to Building a Billion Dollar Chemical Plant in the Marcellus Region of U.S.

June 7, 2011June 7, 2011

Royal Dutch Shell, one of the largest energy companies in the world, announced on Monday that it will build a “world-scale” chemical plant in the Marcellus region of the United States. The chemical plant is called a “cracker” and typically costs more than a billion dollars to construct. Its construction would provide thousands of both short-term construction and long-term operations jobs. Both West Virginia and Pennsylvania have been actively courting chemical companies to build one or more cracker plants in their states (see this MDN story).

The cracker plant would take advantage of one of the byproducts of Marcellus Shale drilling—ethane—which is converted to the hydrocarbon ethylene. Ethylene is a “feedstock” (or raw material) used to make plastics, including polyethylene, the most manufactured and widely-used plastic in the world (see MDN’s brief petrochemical primer here).

Economic Impact | Hydraulic Fracturing | Industrywide Issues

Shale Gas Technologies Now Being Used to Unlock Vast Quantities of Shale Oil

June 2, 2011June 2, 2011

An article in the Toronto Globe and Mail highlights the promising future for shale oil—that’s right, shale oil. The technologies that drillers have used to unlock vast amounts of natural gas from shale are now starting to be used to unlock vast amounts of oil.

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

PA Hires 48,000 People in Past 12 Months to Work in Marcellus Shale Drilling Industry

May 30, 2011May 30, 2011

The Pennsylvania Department of Labor and Industry has just released new employment data and with it, the number of people hired in the past 12 months to work in the Marcellus Shale drilling industry. And the numbers are startling:

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

WV Natural Gas Industry Already Employs 35K People with Average Salaries of $60K

May 26, 2011May 26, 2011

The Independent Oil and Gas Association of West Virginia has just kicked off a new advertising campaign to educate the public to the benefits of natural gas drilling in the state.

Economic Impact | Energy Companies | Industrywide Issues | Range Resources Corp

The Economics of Converting Vehicles to Natural Gas

May 16, 2011May 16, 2011

At a small meeting last week at Washington & Jefferson College (in Washington, PA, near Pittsburgh), representatives from Columbia Gas of Pennsylvania, Range Resources and Pittsburgh Regional Clean Cities presented to several area fleet operators. They were making the case for the economics of switching their cars and trucks to compressed natural gas, or CNG. Widespread use of natural gas to power vehicles will likely start with “fleets” of vehicles—taxis, trucks, buses—and the early adopters will likely be schools, government and larger companies.

We get the following figures on conversion costs from Dan Cotherman, business development manager for driller Range Resources:

Marcellus Drillers Attempting to Woo Chemical Companies to Build Plants in the Marcellus

May 5, 2011May 23, 2011

Marcellus Shale drillers and regional economic development agencies are trying to interest chemical companies in locating to southwest PA and northern WV by building “cracking plants” that would convert some of the compounds from Marcellus drilling into the raw material used to manufacture plastics and other chemical products. Just one such plant would mean a $1 billion investment, creating thousands of short-term jobs to build the plant, and hundreds of permanent jobs to staff it once built.

New Research Details the Positive Economic Impacts from Marcellus Shale Drilling in PA

April 25, 2011April 25, 2011

Some empirical data on the positive economic impacts of Marcellus Shale gas drilling in Pennsylvania:

Economic Impact | Industrywide Issues

How Shale Gas is Leading to Lower Prices on Plastics

April 6, 2011April 6, 2011

Not only is the discovery and abundant supply of Marcellus Shale gas good for consumers in the form of lower energy prices, it’s also good for consumers in the form of lower prices for products made from plastic. An article in Plastics News highlights the importance of the shale gas discovery in the United States and its impact on the production and availability of plastics.

Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA

Proposed Bill Allows PA Universities to Keep Marcellus Drilling Revenues for Building Projects

April 6, 2011April 6, 2011

It’s not a done deal yet, but Pennsylvania may soon allow its state-owned universities to have Marcellus Shale drilling on their property—and keep the money from it.

Allegheny County | Economic Impact | Hydraulic Fracturing | Industrywide Issues | Pennsylvania

Pittsburgh Jobs Up, Housing Prices Up, Bankruptcies Down – Why? Hydraulic Fracturing

March 30, 2011March 30, 2011

Although the entire U.S. remains mired in slow growth, perhaps even a double-dip recession, there are places in the country that are seeing rapid job and economic growth. One of those places is the Bakken Oil fields of North Dakota. Another place is Pittsburgh. Why have those two areas seen such growth and economic prosperity? Hydraulic fracturing. In the case of North Dakota, it’s hydraulic fracturing of oil wells. In the Pittsburgh area, it’s hydraulic fracturing of Marcellus Shale gas wells.

Below is an recent email sent by PittsburghTODAY speaking about Pittsburgh’s economic comeback:

Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA

New Study Shows Counties in PA with Marcellus Shale Drilling Do Better Economically

March 23, 2011March 23, 2011

Penn State researchers have taken a close look at tax revenues from Pennsylvania counties active in the Marcellus shale. Here’s what they found:

PA Hotels in Marcellus Shale Region See Record Occupancy Rates, New Website Helps Workers Find Space

March 21, 2011March 21, 2011

MDN has previously covered the economic benefits of drilling and its impact on local lodging—hotels, motels and even apartment rentals. More evidence of that below, plus a new website to help workers visiting PA find lodging.

Economic Impact | Industrywide Issues | Pennsylvania | Statewide PA

Pittsburgh Economy Surged in 2010 Due Mostly to Marcellus Shale Drilling

March 17, 2011March 17, 2011

It seems everywhere high volume hydraulic fracturing (for either gas or oil) happens in a big way, the economy of that region surges. Recently we told you about the Bakken Oil fields of North Dakota (see here) which has led to the lowest unemployment rates of any state the country. The latest example of the benefits of “fracking” is Pittsburgh, which has resurged precisely because of natural gas drilling in the Marcellus Shale:

Economic Impact | Industrywide Issues | Pennsylvania | Washington County

New $6.6M Pipe Fabrication Plant in Southwestern PA Being Built for Marcellus Shale Projects

March 10, 2011March 10, 2011

Another example of how drilling in the Marcellus Shale brings more money into communities, in the form of taxes and jobs, this time in Washington County, PA.

Sizable Crowd Gathers in Binghamton to Hear Hear Expert Panel Discuss Marcellus Drilling’s Potential Impact on New York

March 7, 2011March 8, 2011

MDN, along with about 200 other people, attended a meeting titled “Marcellus Shale in Our Community: What’s in it for All of Us” on Friday evening March 4th at the West Middle School auditorium in Binghamton, NY. The audience was, for the most part, composed of landowners and those generally in favor of drilling in the Marcellus Shale in New York. The meeting was sponsored by the Joint Landowners Coalition of New York (JLCNY).