Jobs

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    Philly Energy Hub Plan – Not Dead Yet

    not-dead-yetEarlier this week MDN reported that Pennsylvania Gov. Tom Wolf helped kill a plan by Philadelphia Energy Solutions to expand its shale oil refinery in Philly by denying a lease on 200 acres at the Southport Marine site (see PA Gov Wolf Kills Plan for PES Refinery Expansion in Philadelphia). As we noted, the PES plan to expand its refinery facilities was one of the key elements of a plan to turn Philly into an “energy hub” in the northeast–perhaps one day rivaling Houston, TX. However, even though the PES plan is now dead, the dream of turning Philly into an energy hub is far from dead. At least it’s not according to Rob Wonderling, president and CEO of the Chamber of Commerce for Greater Philadelphia. Wonderling recently published an editorial touting the economic benefits of Marcellus Shale and how Marcellus gas is already creating new jobs and opportunities in the Philly area. He calls on those who want to see Philly’s manufacturing and jobs picture improve by leveraging Marcellus gas to join him in “picking some stones” to help Philly achieve its dream…
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    How to Land a Job in the Marcellus/Utica: Education & Training

    jobs.jpgLooking to land a job in the Marcellus/Utica industry? One of the best ways to do it is to go back to school. If you’re lucky enough to get into Pennsylvania College of Technology (an affiliate of Penn State), and if you graduate from one of their programs with a degree, you stand a 96% chance of landing a job. Other programs include ShaleNET, a service that helps train you and then helps find you a job in the industry. Not every job requires a two or four year degree. Often a certificate will suffice. Here’s more info on going back to “school” and what kind of education you need to land a job in the shale industry…
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    PA Marcellus Jobs Saw Big Cuts from 2015 to 2016

    cutting jobsThe Pennsylvania Department of Labor and Industry recently released employment numbers for the first quarter of 2016 for the Keystone State. Those numbers show that employment in PA’s oil and gas industry, which includes the Marcellus, dropped some 10,000 jobs from 1Q15 to 1Q16. That’s about one-third of the o&g workforce. Ouch. Still, PA employs twice as many people in o&g right now than they did when the Marcellus boom got underway in 2008. Here’s the lowdown on the latest PA employment numbers…
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    Tioga County, PA: Marcellus Boom Followed by Not-So-Boom

    tioga-county-pa
    Tioga County, PA

    The oil and gas industry has always gone through cycles–times when the industry expands like crazy, and times when it contracts. The cyclical nature of oil & gas is often characterized by fossil fuel detractors as “boom and bust.” We’ve heard the boom and bust argument for years, previously tackling the issue all the way back in 2012 (see Anti-Drilling Objection: Shale Drilling Causes Boom & Bust). We think it’s time to rename this phenomenon to something more reflective of what it really is: boom and not-so-boom. Many industries, indeed we would argue ALL industries, go through such cycles. The example we gave back in 2012 was to recount the history of the Binghamton, NY area, with our loss of IBM (founded in Endicott), and the loss of Endicott-Johnson Shoes (founded in Johnson City)–two huge employers in the region that eventually left. At least with shale the work returns after a time. IBM and EJ are long gone and never coming back. We’ll take the “boom and bust” of the shale industry over faithless manufacturers any day of the week! Here’s a close-up look at the boom, followed by the not-so-boom, in Tioga County, PA shale country…
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    PA Gives $5M to Union to Train More Welders for Cracker Plant

    5-millionOn Monday Pennsylvania Gov. Tom Wolf announced PA taxpayers are forking over $5 million to Steamfitters Local 449 union for use in their Butler Training Facility project. The union training facility trains welders. The Shell ethane cracker plant, when it gets built, will need a LOT of welders. Right now the facility graduates 170 new welders a year. With the grant money, they will expand it to train and graduate 270 welders a year…
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    Time to Ramp Up Fracking and Put Americans Back to Work

    drilling-equals-jobs.jpgUndoing the damage caused by the Obama Administration over the past eight years is going to take time. When President Trump assumes office on January 20, 2017 (can’t come soon enough!), he will put in motion regulatory relief and tax policies that will create new jobs for the 94 million Americans now out of work (a staggering number that doesn’t get reported by biased mainstream media). However, those policies will take time to implement. If jobs are the #1 priority for Donald Trump, how can he deliver relief in the short term, starting on Day One? According to the retired president of the Association of Washington (State) Business, Don Brunell, Trump should turn to fossil fuels. Brunell suggests a quick solution to more jobs: more fracking…
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    Best Employment Opportunities in O&G Right Now: Frac Crew

    drilling-equals-jobs.jpgMDN editor Jim Willis recently had the pleasure of addressing the Petroleum Club at the University of Pittsburgh’s Bradford, PA campus. Not in person, but via Skype video. When Jim asked the group, most of them in their second year of a two-year petroleum technology program about future job prospects, he got the impression they are concerned. The Marcellus industry has not been immune to layoffs. Graduating with a degree in an industry that’s seen 300,000+ layoffs over the past two years might make some question the wisdom of entering the program in the first place. Jim’s message to these eager young people bursting with potential? Don’t give up–and be encouraged. At the recent Shale Insight event and Benposium East event (both held in September), Jim had a number of conversations with those who either work in or invest in the o&g industry. His conclusion after speaking with industry insiders? Things are beginning to turn around. In fact, we can’t count the number of stories that talk about the coming shortage of good workers in the o&g industry. Today we spotted a press release from Energent Group promoting new research and wanted to highlight some of the information in that release–information that may be helpful to our new young friends at Pitt-Bradford, and for others in the industry looking for work. The research highlights the fact there are many drilled but uncompleted wells (DUCs), in all shale plays–but particularly in the oily Permian and Eagle Ford shale plays. According to the Energent research, workers probably stand the best chance of getting a job with a frac crew–because companies will first work on completing the already-drilled wells by fracking them. Makes sense to us!…
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    White House Report Acknowledges Role of Shale Gas in Manuf Jobs

    drilling-equals-jobs.jpgEven the anti-fossil fuel Barack Hussein Obama can’t ignore the fact that natural gas saved his pathetic administration’s rear-end over the past eight years. Without shale gas, the economy would be further in the crapper than it is now. Last week the White House National Economic Council released a report titled “Revitalizing American Manufacturing” (full copy below) to commemorate Manufacturing Day. The report finds the U.S. economy added some 800,000 manufacturing jobs since 2010–largely due to the shale revolution and cheap natural gas…
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    Obama DOL White-Collar Overtime Reg Affects O&G Industry

    overtimeYou did know that it’s not only the Obama EPA that routinely overreaches by issuing draconian regulations, right? Other Obama agencies, like the Dept. of Labor (DOL), are also guilty of draconian overreach. On May 18, 2016, the DOL published new changes that affect who is and who is not exempt from charging overtime. With the wave of the DOL’s magic wand they doubled the minimum salary necessary for white collar jobs to be “exempt” from overtime. That is, if you now earn a salary below $47,476 annually (or $913 per week), and if you work more than 40 hours a week, it doesn’t matter what your job is–you will be owed overtime for any hours over 40. Which may sound just dandy. Except if your company can’t afford to pay it, you’re about to get laid off, fired or otherwise put out to pasture. Tell me again how much Obama loves me. Employers have until December 1st to figure out what the heck to do, and how to comply, with these draconian new regulations. The legal beagles at law firm K&L Gates have put together a handy guide to help…
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    Baker Hughes Avoids Another Round of Layoffs by Using Furloughs

    cutting jobsWe’ve long bemoaned the fact that the first tactic used by oil and gas companies to stay in business during this severe downturn has been to layoff large numbers of employees. We understand all the arguments: better to cut some rather than go bankrupt and out of business, putting everyone at the company in the unemployment line. We also understand many of these same companies added large numbers of people over the past half decade in the rapid scale-up to handle all of the new shale drilling–so this is simply a “correction” or rebalancing. But tell that to someone who has lost his or her job and the families affected by it. “Hey, you’ve been made redundant” (as our British friends call it). Or, “You’re just a correction.” No, our sympathies are with the men and women who have been laid off and suffer. Some of the biggest layoffs have come from oilfield services companies, like Halliburton and Baker Hughes–both with major operations in the Marcellus/Utica. Tens of thousands have been laid off at each company over the past two years or so. In July Baker Hughes laid off another 3,000 in fell swoop (see Baker Hughes Laid Off 3K in 2Q16, No Drilling Recovery in 2016). It’s been an employment apocalypse. We spotted a story that may offer some hope, and an idea, for companies in o&g pondering yet more layoffs. Instead of laying off yet more people at Baker Hughes, the company has just announced they are using furloughs to cut employee payments by 5%…
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    What Happens to Landmen During a Severe Downturn?

    landmanLandmen, the people on the front lines interfacing between drillers and landowners, are facing tough times. With the slowdown in drilling has come a slowdown in leasing, or re-leasing. Landmen are the guys and gals who perform that duty–and many of them are now doing other jobs, waiting and hoping for the next upturn in the industry. Here’s the story and perspective of one landman who has been in the business for the last 37 years, through five different up and down cycles. Most recently he worked as a landman for Noble Energy–until he was laid off 1.5 years ago…
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    A SECOND Ethane Cracker Coming to Pennsylvania? Maybe!

    secondLast week MDN reported that Dennis Davin, Secretary of the Pennsylvania Department of Community and Economic Development (DCED) had gone on a roadshow to three counties that will be most affected by Shell’s ethane cracker plant planned for Beaver County (see PA Econ Dev Secretary Hits Road to Promote Shell Cracker). Of course one of those counties was Beaver. Davin addressed a forum in Beaver last Tuesday. What we’re just learning now is that, at the Beaver forum, there was brief talk about a SECOND ethane cracker for Pennsylvania. You read that right. There are no concrete plans as yet, but the scuttlebutt is that an unnamed company is scouting PA for a second cracker plant. According to Davin, his agency has “heard rumblings” but “nothing more.” However, following Davin’s appearance in Beaver and the talk of a second cracker, the DCED issued a statement clearly meant to stoke those rumors…
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    Shale Crescent Luring Petchem Companies to Mid-Ohio Valley

    Shale Crescent USAIn June MDN told you about an economic development group of business and government leaders from Ohio and West Virginia (the Mid-Ohio Valley) called Shale Crescent (see Group Promotes Mid-Ohio Valley for Petrochem: Shale Crescent USA). The group was two years in the making and officially launched in June at a public event in Washington County, OH. The aim of the group is to attract manufacturers–particularly petrochemical manufacturers–to set up shop in the region. Although the organization is still in its infancy, it’s already having an impact and is talking to large petchem companies (“household names”) about building plants in the Mid-Ohio Valley region to take advantage of cheap Marcellus/Utica Shale gas and NGLs…
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    Kent State Study: UTOPIA Pipeline to Yield $237M for Ohio Economy

    Utopia Project
    Click for larger version

    As MDN reported yesterday, Kent State University researchers have just issued a report evaluating the economic impact of the proposed Kinder Morgan UTOPIA (Utica To Ontario Pipeline Access) project on the State of Ohio. UTOPIA is a 12-inch ethane pipeline that will run 240 miles across Ohio, connecting with another pipeline that will shuttle Utica/Marcellus ethane all the way to a cracker plant in Sarnia, Ontario. The Kent State study estimates this tiny pipeline project will contribute a whopping $237.3 million to Ohio’s economy, creating 2,132 direct and indirect jobs in Ohio and generating $4.9 million in yearly tax revenues. Below is a press announcement from Kent State with a good overview of the study, followed by a full copy of the study, which is titled: “Economic Impact of Kinder Morgan Utopia Pipeline Project”…
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    Washington County, PA Panel Talks Marcellus, Cracker & the Future

    walks into a barA banker, a real estate developer and a natural gas drilling company rep walk into a bar… No wait! This isn’t a joke! A banker, a real estate developer and a natgas drilling rep were panelists at seminar held yesterday, organized by the Pittsburgh Business Times. Even though there has been a major slowdown in Marcellus/Utica drilling, all three panelists were upbeat and optimistic–in no small part because of the coming Shell ethane cracker in nearby Beaver County. One comment made about the Shell cracker: “We’re not just building a facility; we’re building an industry.” That’s just how major the Shell project will be in the greater Pittsburgh area. Another comment: “The Marcellus Shale is not in the tank…It has slowed down, which is typical of industries that are sensitive to price cycles, [but] it’s consistent, affordable and is stable.” More interesting tidbits from the PBT soiree…
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    Half of UTOPIA Pipeline Jobs in OH May Go to “Foreigners”

    Utopia map
    UTOPIA Pipeline map – click for larger version

    Now that Ohio Gov. John Kasich’s grandiose delusion of becoming the next president of the U.S. has been shattered and he’s had time to lick his wounds, it’s time to drag old “foreigner hunter” out for a new round of tracking down out-of-state workers. We have a mission for him: UTOPIA. As in Kinder Morgan’s UTOPIA ethane pipeline, planned to run 240 miles across Ohio. As pipelines go, it’s pretty small at only 12 inches in diameter. But ethane (a natural gas liquid) doesn’t need a huge pipeline to cart it across the Buckeye State. UTOPIA (named for Utica To Ontario Pipeline Access) will cross the state and connect to another pipeline that will carry Utica/Marcellus ethane to Michigan and on from there to Canada to feed the NOVA ethane cracker in Sarnia (see UTOPIA is Coming! The UTOPIA Pipeline, that is…). Kinder has just released a new study conducted by Kent State University researchers that outlines the huge economic benefits for Ohio in building UTOPIA. One of the interesting factoids: The pipeline will create over 2,000 temporary jobs–900 of them in construction. The report estimates that half of those construction jobs will go to out-of-state workers. Since Gov. Kasich is a jingoist with a problem employing out-of-state workers from exotic places like Texas and Louisiana (he calls them “foreigners,” see OH Gov. Kasich Continues Trash Talk Out-of-State Workers), we expect he’ll be prowling around to see if he can “fix” the situation…
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