Jobs

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    Study: Appalachia New Gulf Coast for Petchem, WITH Storage Hub

    An economic report released yesterday by the American Chemistry Council (ACC) shows that the Appalachian region could become a second center of U.S. petrochemical and plastic resin manufacturing, similar to the Gulf Coast. ACC President and CEO Cal Dooley presented the findings at a Capitol Hill press event with lawmakers including Senator Shelley Moore Capito (R-W.Va.), Senator Joe Manchin (D-W.Va.) and Rep. David McKinley (R-W.Va.). “The Appalachian region has distinct benefits that could make it a major petrochemical and plastic resin-producing zone,” Dooley said. “Proximity to a world-class supply of raw materials from the Marcellus/Utica and Rogersville shale formations and to the manufacturing markets of the Midwest and East Coast has already led several companies to announce investment projects, and there is potential for a great deal more.” What will it take to turn our region into another Gulf Coast petchem powerhouse? According to the report, an NGL (natural gas liquids, i.e. ethane) storage hub. You may recall Sens. Capito and Manchin recently introduced a bill to study an Appalachian NGL storage hub (see WV/OH Senators Intro Bill to Study Appalachian Ethane Storage Hub). The study, titled “The Potential Economic Benefits of an Appalachian Petrochemical Industry” (full copy below), says by 2025, the four-state region could see 100,000 permanent new jobs, including 25,700 new chemical and plastic products manufacturing jobs, 43,000 jobs in supplier industries and 32,000 ‘payroll-induced’ jobs in communities where workers spend their wages (restaurants, hotels, etc.). The new investment could also lead to $2.9 billion in new federal, state and local tax revenue annually. It’s huge! There’s a lot riding on an ethane storage hub, which was the point of the report and the political dog and pony show yesterday in Washington, D.C…. Read More “Study: Appalachia New Gulf Coast for Petchem, WITH Storage Hub”

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    Mon Valley in Catbird Seat, Close to Both Shell & PTT Crackers

    As we have endlessly covered, Shell is in the midst of building a $6 billion ethane cracker plant in Beaver County, PA (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). Cracker plants chemically “crack” ethane to produce ethylene–the raw material used to make plastics, anti-freeze and more. As we point out in another article today, these ethane crackers (along with an ethane storage hub) have the ability to turn the Marcellus/Utica into a new Gulf Coast for petrochemical manufacturing (see Study: Appalachia the New Gulf Coast for Petchem w/NGL Storage Hub). Other cracker plants have been mentioned for the region–the most realistic being a second cracker in Belmont County, OH by Thailand-based PTT Global Chemical. PTT announced earlier this year they are delaying a final investment decision until “late 2017” (see PTT Global Delays Final Investment Decision for OH Ethane Cracker). However, most people (including MDN) think it’s a safe bet that PTT will move forward with the project. The Shell cracker, and the prospect of the PTT cracker, is stirring up a lot of interest in the part of manufacturers to locate in the Mon Valley–that area along the Monongahela River south of Pittsburgh. That region is ideally located–about an hour from the Shell cracker in Beaver County, and about an hour from the proposed PTT cracker in Belmont County, OH. We call it the catbird seat… Read More “Mon Valley in Catbird Seat, Close to Both Shell & PTT Crackers”

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    New Study: 1 Million New Jobs Coming in Gas/Oil Thru 2035

    A couple of weeks ago the American Petroleum Institute (API) released a new study that shows private investment in U.S. natural gas and oil infrastructure could (and likely will) create over 1 million new U.S. jobs. That is an incredible number! The study also shows that private investment may exceed $1.3 trillion for new oil and natural gas infrastructure. Wow! Over the past five years, U.S. oil and gas infrastructure development proceeded at a rapid pace. Many have wondered whether the trend can continue. API wondered too, so they contracted the experts at ICF to undertake a study that investigates the amount of oil and gas infrastructure development possible in the U.S. through 2035. The result is the report, “U.S. Oil and Gas Infrastructure Investment Through 2035” (full copy below). The report focuses on the amount of infrastructure needed for two different scenarios, a Base Case and a High Case, each of which are plausible scenarios for future market conditions. While the Base Case represents a most likely scenario, the High Case is included to assess infrastructure development in a more robust environment that is fostered by a larger hydrocarbon resource base and more rapid advancements in technology. The study looks at capital expenditures associated with, and the resulting economic consequences of, oil and gas infrastructure development… Read More “New Study: 1 Million New Jobs Coming in Gas/Oil Thru 2035”

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    Commerce Secretary: Shale Gas is the Future of West Virginia

    More than 300 people attended the West Virginia Manufacturers Association’s Marcellus and Manufacturing Development Conference in Morgantown yesterday. Among the topics discussed–the need for faster approvals of pipelines, and the positive economic of shale on the Mountain State. Among the speakers was new State Commerce Secretary Woody Thrasher–who spent most of his career in the private sector. According to Thrasher, “shale gas is the future of economic opportunity in West Virginia.” Thrasher said the industry with the biggest potential for growth in WV is shale energy–and it’s “only begun to emerge.” He urged audience members to get involved and make their voices heard–at the local, state and federal level. We think it’s a fair statement to say that Thrasher rallied the troops and is leading the charge to see more shale energy developed in WV… Read More “Commerce Secretary: Shale Gas is the Future of West Virginia”

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    Sunoco LP Hiring 50% Local to Build Mariner East 2 Pipeline

    As construction of the Mariner East 2 NGL (natural gas liquids) pipeline project heats up, thousands of Pennsylvanians are going back to work. Sunoco Logistics Partners (now called Energy Transfer Partners) said it would take some 8,000 workers to build the twin pipelines called Mariner East 2–from eastern Ohio through the state of Pennsylvania to the Marcus Hook refinery near Philadelphia. When Sunoco LP signed a deal to hire union workers for the pipeline, the deal stipulates half of the hires are local–from within PA. Sunoco has lived up to its word, as evidenced by the testimony of the Operating Engineer’s Union (Harrisburg) who has already seen 50 of its members hired to work on the project. What about the other half, the “foreigners” who come from other states? They’re brought in because of required specialized skills. But even the out-of-staters are welcomed–they’re adding big bucks to the local economy… Read More “Sunoco LP Hiring 50% Local to Build Mariner East 2 Pipeline”

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    How to Apply for one of the 15K Jobs Building the Rover Pipeline

    Last week MDN brought you the news that Energy Transfer’s $3.7 billion, 711-mile Rover Pipeline needs up to 15,000 workers to build it. They currently have ~4,500 workers. And they want to complete the first stage of the pipeline by July (see Help Wanted: 15,000 Workers Needed for Rover Pipeline, STAT!). MDN’s story went viral. It has, so far, been read over 17,000 times on the MDN website–an all-time high for a story less than a week old. The headline and blurb we posted on Facebook has been seen by nearly 72,000 people! The result was that we were flooded with this simple question: Where do I sign up to work on the pipeline? The answer, unfortunately, is not straightforward. We reached out to Energy Transfer multiple times and got less-than-satisfactory answers. Energy Transfer’s answer to the question is this: If you are a contractor or want to try your hand at becoming a contractor, you can try applying via Rover’s contractor online application process (here). However, most people are not interested in that route. They just want to sign up and begin working. For those folks, Rover responded, “Rover is committed to utilizing Union labor 100% for this project. Laborers looking for work, can contact their local union halls.” No help with identifying those local union halls. It is a sort of “you’re on your own” kind of response. Which strikes us as odd. Does Energy Transfer really want to complete this project on time? Could they at least provide a list of the “local union halls” for folks to contact? Apparently not. So we will…
    Read More “How to Apply for one of the 15K Jobs Building the Rover Pipeline”

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    Help Wanted: 15,000 Workers Needed for Rover Pipeline, STAT!

    [4/7/17 UPDATE: Since publishing this post, MDN has been flooded with calls and emails asking, “Where do I apply for a Rover job?” After reaching out to Rover numerous times, what we have learned is that Rover is using contractors, and union labor. There is no HR office at Rover to accept job applications. Job seekers must either find a job with a local contractor already working with Rover, or by heading down to the local union hall to see if they can help. MDN plans to publish another article next week with more details and strategies on finding a Rover Pipeline job. Stay tuned.]

    Some really big news coming from the Utica Upstream conference held Wednesday at Walsh University (in North Canton, OH). As we previously reported, Rover Pipeline got permission from the Federal Energy Regulatory Commission (FERC) to begin construction on March 3rd (see FERC Green Lights Rover Pipeline Construction). And construction began, immediately. A local TV station recently did a flyover of one area where construction is happening, and the video is an awesome sight (see Video of Rover Pipeline’s Massive & Complex Construction in OH). Operating all of those bulldozers and backhoes, driving trucks, shoveling dirt, moving material from Point A to Point B–takes people. A LOT of people. So far Rover has hired 4,500 workers–but they need 15,000! And they need them NOW, as soon as possible, stat. What happens if they don’t get enough workers? They won’t make their deadline of completing the first phase of the Rover project by July 1st. What stands in the way of hiring another 10,000+ workers? In a word, drugs. Rover can’t find enough warm bodies who can pass a drug test, which is a sad commentary on society today…
    Read More “Help Wanted: 15,000 Workers Needed for Rover Pipeline, STAT!”

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    Time to Chop 23% of Dead Weight at EPA – “Shock” and “Dread”

    The ax is about to swing at the federal Environmental Protection Agency (EPA). While we don’t wish ill on anyone, and especially we don’t like to see people out of a job, this is one time when it’s necessary and LONG overdue. The EPA is populated with many career employees who lean far to the left–and it’s about time they were gone. An internal EPA memo has turned up (full copy below) that outlines plans to downside the agency from 15,000 employees to around 11,500–about a 23% reduction. The bold move has many career Democrats at the agency in “shock” and in “dread” over the prospect of losing their jobs. But in typical fashion, these Dems are not just going to wilt away. Their union plans to fight to keep the jobs and to keep the leftist Obama environmental agenda alive in the Trump Administration. Good luck with that. Remember what happened to the air traffic controllers’ union in the Reagan Administration?…
    Read More “Time to Chop 23% of Dead Weight at EPA – “Shock” and “Dread””

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    Jobs in Building Trades “Strong” for Next 3 Yrs in OH Utica

    Those who oppose fossil fuels try various arguments to convince the general public that extracting oil and gas is bad for the environment. They claim (without facts or proof) that drilling pollutes the water, it pollutes the air, it does permanent damage to the environment. When faced with lack of evidence, antis slip-slide into other arguments against drilling and pipelines. An undeniable benefit from the shale industry is jobs. That includes jobs building pipelines. You need an army of bulldozers, backhoes, truckers, welders and construction workers to lay a pipeline (see today’s lead story and the awesome video of the Rover Pipeline getting built in Richland County). Antis say, “But jobs building pipelines and power plants and processing plants are temporary. They’re illusory. No long-term benefit.” We’ll never forget the powerful statement given at a hearing about the proposed Constitution Pipeline from Francis Cooney, a 28-year member of the plumber and pipe-fitters union. He said this in response to the “those jobs are temporary” meme offered by antis that evening: “For 28 years every job I’ve had has been a temporary job! My temporary jobs have put two kids through Syracuse University” (see Vicariously Attend FERC Scoping Hearing on Constitution Pipeline). Which obliterates the nonsense about “temporary jobs.” Good news for Ohioans who work “temporary jobs” in the trades in Stark and surrounding counties: Dave Kirven, president of the East Central Ohio Building & Construction Trades Council, says there’s plenty of work for tradespeople–that demand is “strong” for tradespeople for at least the next three years. Why? Mostly due to the Utica Shale…
    Read More “Jobs in Building Trades “Strong” for Next 3 Yrs in OH Utica”

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    Halliburton Rehires 2K, Says “Animal Spirits are Back” in US Land

    In a “hasty” and “rare” operations call last Friday, Halliburton, the world’s second largest oilfield services (OFS) company, offered up some interesting comments. The call was apparently an attempt to blunt the coming news that the company will likely miss analyst’s expectations for profit/loss and dividends, due to rising costs and weak demand in international markets. Top brass at Halliburton wisely know that “he who gets there with the bad news first, wins.” However, the call was wide-ranging and included some good news: After trimming 35,000 jobs over the past couple of years, Halli is adding back 2,000 jobs. That’s better than a sharp stick in the eye. CEO Dave Lesar also had this rather bizarre statement on the call, in his ebullience over the drilling comeback in North America: “This diverse and exciting market has created a surge of activity and supports my thesis that the animal spirits are back in U.S. land.” OoooKay. We’ll go with it. Animal spirits. Here’s the news coming from last week’s hasty Halliburton homily…
    Read More “Halliburton Rehires 2K, Says “Animal Spirits are Back” in US Land”

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    Enbridge Axing 1,000 (Mostly) Spectra Energy Jobs

    Last September MDN reported on a midstream deal with major implications for the Marcellus/Utica: Canadian pipeline operator Enbridge Inc. announced an all-stock deal to buy out pipeline operator Spectra Energy, based in Houston, for $28 billion (see Canadian Enbridge Buying US Spectra Energy for $28B). Spectra has a number of critical pipeline infrastructure projects under way or planned in the Marcellus/Utica region, including the planned Access Northeast pipeline to New England, the mighty NEXUS pipeline planned to span Ohio, the currently under construction Algonquin Incremental Marketing (AIM) pipeline project, and three projects (Access South, Adair Southwest and Lebanon Express) under way to expand one of the largest natural gas pipelines in the U.S. (and in the northeast)–the Texas Eastern Transmission (Tetco) pipeline. The merger was completed in February (see Spectra Energy is No More – $28B Merger with Enbridge Complete). Unfortunately, this week Enbridge announced they are axing around 1,000 jobs (6% of the workforce), to “address the overlap” and optimize “synergies” in the newly-combined company. Most of the 1,000 jobs being axed are from the Spectra workforce in the Houston area. We wonder how many top managers were “overlap” and “synergy optimized?” Yeah, likely none…
    Read More “Enbridge Axing 1,000 (Mostly) Spectra Energy Jobs”

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    How to Do Business with the Shell Ethane Cracker Plant

    Some 400 business, education and government officials attended a sold-out forum last week in Titusville, PA to hear about doing business with the $6 billion Shell ethane cracker project in Beaver County, PA. The stakes are high. One PA official said, “This is the greatest generational economic development we’ve seen in Pennsylvania, maybe ever.” According to a Louisiana resident involved with crackers in his state, for ever job the Shell cracker creates there will be 8.3 jobs somewhere else–at other companies in the region–to support the plant. It is an incredible opportunity. The question, for businesses in the region, is: How do we get a piece of the cracker pie? We now have an answer–at least in part. If you want to supply goods and services for the construction of the plant, the key is in working with the main contractor building the plant–Bechtel. Below we have details on how to plug in to the Bechtel supply chain system, along with advice for job seekers who want to work at the cracker plant once it’s built…
    Read More “How to Do Business with the Shell Ethane Cracker Plant”

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    Biddel Gas Compression Selects WV Northern Panhandle for US HQ

    Last Friday Bidell Gas Compression, a subsidiary of Canadian company Total Energy Services, announced it will establish its U.S. headquarters in Weirton (Hancock County), WV–in the northern panhandle of WV. According to their website, Biddel “is a leading supplier of reciprocating and rotary screw natural gas compressors from 20 to 8,000 brake horsepower.” That is, they manufacture and sell pipeline compressors. The site they chose includes a 100,000 square-foot building, part of the old ArcelorMittal machine shop operation. The investment will create 130 new jobs and spur new growth in other area businesses…
    Read More “Biddel Gas Compression Selects WV Northern Panhandle for US HQ”

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    Lawrence County Campaigns to Lure Cracker-Related Businesses

    Lawrence County, PA

    The leaders of Lawrence County, PA are clever. After five years of crunching numbers, in June 2016 Shell finally committed to building a multi-billion dollar ethane cracker plant complex in Beaver County, PA (see Breaking: Shell Pulls the Trigger, PA Ethane Cracker is a Go!). Since that time it’s pretty much been full speed ahead. The site is now cleared, extra roads and bridges have been built to handle truck traffic, and by July, two new cement plants will be in place to produce the enormous amounts of concrete needed to build the facility (see Shell Cracker Construction Starting Soon; Concrete Plants Ramp-up). From the start, this has always been a “regional” story because the cracker, while it’s getting built and after it’s built, will stoke economic activity in the way of jobs and business throughout southwestern PA, eastern OH and into WV’s northern panhandle. But knowing there’s a great opportunity and wishing/hoping some it will come your way is not enough. That’s what the smart leaders of Lawrence County (shares its southern border with Beaver County) know. Earlier this week Lawrence County launched a major effort to attract businesses to the county–businesses that are interested in supplying good and services too, or receiving raw plastics from, the Shell ethane cracker…
    Read More “Lawrence County Campaigns to Lure Cracker-Related Businesses”

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    Shell Cracker Construction Starting Soon; Concrete Plants Ramp-up

    One of our fun pastimes is speculating about when, exactly, the mighty Shell ethane cracker in Beaver County, PA will actually go online. In February, Shell CEO Ben van Beurden said this: “We haven’t announced exactly when it will start up, but expect that to be not anymore this decade” (see Shell CEO Says PA Cracker Up & Running “Not Anymore This Decade”). What did the non-native English-speaking van Beurden mean? Your guess is as good as ours. Did he mean “by the end of this decade,” or “not by the end of this decade”? Our best guess is that the cracker won’t be operating until 2020 or 2021–that is, the latter meaning. We have some evidence to support that theory. Two concrete plants are due to begin construction any day now, being built by Champion Concrete. The two plants, which will manufacture all of the concrete used in the cracker, are scheduled to be completed and in operation by July. So concrete for the project begins to flow in July. The useful life of the two plants (for manufacturing concrete for the cracker) is three years. Three years from this summer will be the summer of 2020. Important note to supply chain businesses: as the concrete plants and construction activity ramps up, there’s opportunity to sell more of your goods and services to this enormous project. The number of workers at the site will steadily increase this year and next…
    Read More “Shell Cracker Construction Starting Soon; Concrete Plants Ramp-up”

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    Marcellus Shale Saving Family Farms Across Pennsylvania

    Across the Keystone State (i.e. Pennsylvania), the shale revolution is “boosting agriculture,” says a farm expert. How? By providing new sources of capital (cash) to buy new equipment, more livestock, fix buildings, etc. Shale is also lowering the cost of fuel and fertilizer for farmers. And it provides jobs for members of farming families–bringing in an important new income stream. It is not an overstatement to say that shale is literally saving the family farm in PA…
    Read More “Marcellus Shale Saving Family Farms Across Pennsylvania”