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”

As we have endlessly covered, Shell is in the midst of building a $6 billion ethane cracker plant in Beaver County, PA (see
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…
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…
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
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?…
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…
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…
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…
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
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…