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Brooke County | Economic Impact | Electrical Generation | Harrison County | Industrywide Issues | Jobs | Marshall County | West Virginia

Big News: 3 More Marcellus-Powered Electric Plants Coming to WV
March 6, 2015March 6, 2015

Three weeks ago MDN reported a Buffalo, NY-based company had successfully gotten all necessary permits to move forward with building a $615 million, 549 megawatt electrical generating plant near Moundsville, WV that will be powered by Marcellus Shale gas (see Marshall Co Gas-Powered Electric Plant Gets WV Green Light). Then we told you the plant will burn not only methane (natgas), but also up to 25% of the mix will be ethane (see WV Moundsville Electric Generating Plant to Burn Methane + Ethane!). Looks like the Moundsville project was the proverbial canary down the WV coal mine–and it lived! In the past few days the father and son team behind the Moundsville project have announced three (yes 3!) more just like it–all in WV. Why is this a big hairy deal? The Moundsville plant was already slated to be WV’s single largest user/consumer of natural gas. Just think how much gas will be used quadrupling that number…
Read More “Big News: 3 More Marcellus-Powered Electric Plants Coming to WV”
Economic Impact | Industrywide Issues | Jobs | Research

New Research: Shale Drilling has Enormous Benefits for Economy
March 2, 2015March 2, 2015

A new research paper recently published by researchers at the University of Wyoming takes a close look at the economic benefits and potential pitfalls of shale drilling. The paper, titled “The Economics of Shale Gas Development” (full copy below) was accepted last November for publication later this year in the Annual Review of Resources Economics. The upshot of the paper is this: there are ENORMOUS economic benefits from shale drilling–and we’ll realize those benefits as long as we don’t screw it up. That is, we need to be mindful of, and careful to manage, the environmental impacts from drilling…
Read More “New Research: Shale Drilling has Enormous Benefits for Economy”
Belmont County | Economic Impact | Energy Services | Energy Transfer Partners | Harrison County | Industrywide Issues | Jefferson County (OH) | Jobs | Monroe County | Ohio | Pipelines

List of Towns in 4 SE OH Counties Getting ET Rover Pipeline
February 26, 2015February 26, 2015

Southeast OH will soon see a lot of new pipelines being laid, and along with it, a lot of new jobs. Energy Transfer Partners recently briefed Monroe County Commissioners on the ET Rover pipeline project, an 800-mile, $4.4 billion pipeline that will connect the Marcellus and Utica Shale region to Canada (see ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing). If the pipeline is laid as currently planned in the southeastern portion of Ohio, the pipeline will traverse 46.31 miles in Monroe County, 34.99 miles in Belmont County, 20.06 miles in Jefferson County and 17.7 miles in Harrison County. Here’s a list of the lucky townships in those four counties where the pipeline is due to go…
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Energy Services | Harrison County | Industrywide Issues | Jobs | MarkWest Energy | Ohio | Processing Plants

MarkWest Energy Accused of Using Non-Union, Non-Ohio Workers
February 24, 2015February 24, 2015

Calling OH Gov. John “foreigner hunter” Kasich. We have an infraction! Quick! You’re needed, stat. Word has leaked out that MarkWest Energy has not only reduced the number of union members they’re using on jobs in Harrison County, OH, they’re using non-union (gasp) out-of-state workers–from exotic places like Texas and Louisiana and Oklahoma. Those places have been defined by John Kasich as “foreign” locations (i.e. non-Ohio). Periodically the jingoist-in-chief gets on his high horse and goes riding after those darned foreigners (see OH Gov. Kasich Continues Trash Talk Out-of-State Workers and OH Gov. Kasich Goes After Out-of-State Engineers/Surveyors and OH Gov. Kasich Goes Foreigner-Hunting in Strasburg and OH Gov. Kasich Dedicates Hickory Bend Plant, No Foreigners Found). Well, we’ve found the site of another infraction…
Read More “MarkWest Energy Accused of Using Non-Union, Non-Ohio Workers”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | Jobs

Halliburton Laying Off Up to 6,400, Says Baker Hughes Not a Factor
February 13, 2015February 13, 2015

Halliburton, the county’s second largest oilfield services company, announced earlier this week they’re laying off some 6.5% to 8% of their 80,000 employees, which translates to 5,000 to 6,500 jobs. The company Halliburton is buying, Baker Hughes, announced in January they are laying off 11% of their workforce (see Baker Hughes Announces 7,000 Layoffs Due to Low Oil Price). Also in January, the country’s (and world’s) largest oilfield services company, Schlumberger, laid of 9,000 workers (see Schlumberger Firing 9,000 to Reduce Head Count, “Low Oil Prices”). To which we say, it’s getting ugly out there…
Read More “Halliburton Laying Off Up to 6,400, Says Baker Hughes Not a Factor”
Industrywide Issues | Jobs | Pennsylvania | Statewide PA

Growing Jobs: Marcellus/Utica PR Agency Opens Branch Office in TX
February 12, 2015February 12, 2015

Used to be that companies working in and for the oil and gas industry–located in states like Texas and Oklahoma–would set up branch operations in states like Pennsylvania, Ohio and West Virginia to take advantage of the Marcellus and Utica Shale. These days, however, the trend is sometimes reversed. Bravo Group is a public relations firm based in Harrisburg, PA with a long list of clients in the oil and gas industry. Yesterday Bravo announced they’re opening a branch office in Texas. We love it when northeast shale drilling starts to export jobs to “foreign” places (as OH Gov. John Kasich calls them) like Texas…
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Crawford County | Energy Services | Industrywide Issues | Jobs | Pennsylvania | Supply Chain | Universal Well

Universal Well Services Closes PA Facility, Lays Off Some Workers
February 11, 2015February 11, 2015

It wasn’t so long ago that MDN told you about the “feel good” story of Universal Well Services, a Meadville (Crawford County), PA company specializing in pressure-pumping wells, cementing well pads and other well services (see Marcellus Supply Chain Success Story: Universal Well Services). Universal is a subsidiary of Patterson-UGI Energy, Inc.–a large oilfield services company. The company had grown from 200 to more than 1,000 employees in 10 years. But that was before the price of oil and gas went into the basement. Now they’re laying off employees…
Read More “Universal Well Services Closes PA Facility, Lays Off Some Workers”
Belmont County | Energy Companies | Energy Services | Industrywide Issues | Jobs | Monroe County | Ohio | Pipelines | Rice Energy | Rice Midstream

Rice Midstream Building New “Zeus” Pipeline in Belmont/Monroe OH
February 10, 2015February 10, 2015

MDN picked up on a bit of news we had not previously heard about. Rice Midstream, the newly formed subsidiary of Rice Energy launched in December (see Rice Midstream IPO Falls Short of Goal by Approx. $134M), is busy at work. They are building eight miles of 30-inch pipeline through portions of Belmont and Monroe counties (in Ohio) as part of their “Zeus” project. This is the first time we’d heard of Zeus (the pipeline). The project will last four months and employ 350 temporary union workers–welders and construction workers…
Read More “Rice Midstream Building New “Zeus” Pipeline in Belmont/Monroe OH”
Energy Services | Industrywide Issues | Jobs | Mahoning County | Ohio | Supply Chain | Vallourec

Vallourec Star Pipeline Plant in OH Shutting Down for 3 Weeks
February 10, 2015February 10, 2015

Vallourec Star, a steel pipe manufacturer in Youngstown, OH, has had more business than it knows what to do with since it opened in 2012. That is, until recently. With the plunging price of oil and gas comes scaled back budgets for drilling in 2015. Vallourec Star has been experiencing a slow down. In anticipation of even more slowing down, they’ve announced a three week shut down of the plant, meaning hundreds of families will have a big hole in their family budgets. For those that can do without a paycheck for a while, the company is also offering a 6-month voluntary layoff, which signals they think the “slow down” may be with us for while…
Read More “Vallourec Star Pipeline Plant in OH Shutting Down for 3 Weeks”
Economic Impact | Energy Services | Industrywide Issues | Jobs | Pennsylvania | Pipelines | Research | Statewide PA | Sunoco Logistics

New Study: Mariner East 1 & 2 Pipelines Mean $4.2B Windfall in PA
February 6, 2015February 6, 2015

Sunoco Logistics has an important new tool in its fight to build the Mariner East 1 and Mariner East 2 pipeline projects in Pennsylvania. Mariner East 1 is already partially up and running but needs the final leg completed that will connect it to the Marcus Hook refinery near Philadelphia (see Range Cuts 2015 Drilling Budget 33%; Mariner East Up & Running!). Mariner East 2 is still on the drawing board. It will be a new 350-mile pipeline, most of it laid next to Mariner East 1 (see Sunoco Logistics Will Build $2.5B Mariner East 2 Pipeline). The new tool? Sunoco hired Econsult Solutions Inc. to do a proper, independent, rigorous and accurate study of the potential economic impact from the two projects on the PA economy. The study, titled “The Economic Impact of Sunoco Logistics’ Mariner East Projects in Pennsylvania” (full copy embedded below), says the two projects will add $4.2 billion to Pennsylvania’s economy, support more than 30,000 jobs during the construction period, and create 300-400 permanent jobs…
Read More “New Study: Mariner East 1 & 2 Pipelines Mean $4.2B Windfall in PA”
Dauphin County | Dominion Energy | Economic Impact | Energy Services | Industrywide Issues | Jobs | Pennsylvania | Pipelines | Statewide PA | Supply Chain

Dominion Selects PA Company to Manufacture 540 Miles of Pipe
February 5, 2015February 5, 2015

Keepin’ it in the family. Love it. Dominion plans to build the Atlantic Coast Pipeline–a 550-mile, $5 billion natural gas pipeline that will flow, cheap, abundant, clean-burning Marcellus Shale gas from West Virginia into Virginia and North Carolina (see Dominion Commits to Major New Marcellus/Utica Pipeline Project). Provided the Federal Energy Regulatory Commission (FERC) approves it, construction will begin in 2016. Yesterday, Dominion announced that a Pennsylvania company near Harrisburg–Dura-Bond–has been selected to manufacture 540 of the 550 miles of the pipe needed for the project. It is, according to Dura-Bond, the largest order in the company’s history. The announcement doesn’t disclose the terms of the deal, but we do know it will generate 150 new jobs at Dura-Bond and inject a huge amount of money into the Harrisburg-area economy starting later this year. American/Pennsylvanian jobs, American/Pennsylvanian company. All in the heart of the Marcellus…
Read More “Dominion Selects PA Company to Manufacture 540 Miles of Pipe”
Allegheny County | Chevron | Energy Companies | Industrywide Issues | Jobs | Pennsylvania

Chevron Laying Off 23% of their Marcellus Workforce in Pittsburgh
January 23, 2015January 23, 2015

Well, don’t say we didn’t warn you. In November MDN brought you the news that Chevron announced the are “restructuring” their northeast business until to “become more efficient” and for “long-term growth.” We pointed out at the time that kind of language doesn’t inspire confidence (see Chevron Scaling Back in the Marcellus/Utica? Maybe). We also said it was a good sign that no WARN Act notices of impending large layoffs had been issued. Oops. That’s now changed. In an emailed statement yesterday, Chevron said it plans to lay off 162 Pennsylvania workers as part of their “restructuring”–nearly a quarter of their Marcellus workforce. Ouch. It wasn’t so long ago Chevron was planning to build a massive, new 350,000 square foot regional headquarters near Pittsburgh (see Chevron Puts Moon Twp, PA Office Building Project on Hold). It seems that project is now dead–no signs of life. Here’s the disappointing info on Chevron’s coming round of layoffs…
Read More “Chevron Laying Off 23% of their Marcellus Workforce in Pittsburgh”
Industrywide Issues | Jobs

Not Every NE Driller is Laying Off Workers – Some Buck the Trend
January 23, 2015January 23, 2015

Lately it seems the news has been bad when it comes to layoffs and cutbacks in the northeast shale drilling industry. We recently had the bombshell that Schlumberger is cutting 9,000 jobs because of low oil prices (see Schlumberger Firing 9,000 to Reduce Head Count, “Low Oil Prices”). Then Baker Hughes announced layoffs of 7,000 (see Baker Hughes Announces 7,000 Layoffs Due to Low Oil Price). Both are national layoffs–we don’t know how many of those jobs are in the northeast, but the northeast is the biggest shale region in the U.S. at the moment, so it stands to reason some (many?) will come from our neck of the woods. Today Chevron announced they’re laying off 162 people in the Pittsburgh area (see our lead story today). Almost every major Marcellus/Utica driller has announced major cuts in their capital expenditure budgets for 2015–from Range Resources and Antero Resources to the much smaller firms like Rex Energy and Stone Energy. Less spending on drilling = cutbacks in jobs, at least jobs at oilfield services and other related companies. So when we saw a story that says “wait a minute, we’re not cutting jobs”–and the people saying it are the heads of big Marcellus/Utica drillers, that caught our attention…
Read More “Not Every NE Driller is Laying Off Workers – Some Buck the Trend”
Baker Hughes | Energy Services | Industrywide Issues | Jobs

Baker Hughes Announces 7,000 Layoffs Due to Low Oil Price
January 21, 2015January 21, 2015

Although Baker Hughes, one of the largest oilfield services companies in the United States, had “record high” revenue in 2014 ($24.6 billion for the year), the company announced yesterday that they will lay off 7,000 employees in the first three months of 2015. This comes on the heals of Sclumberger’s announcement that they will lay off 9,000 (see Schlumberger Firing 9,000 to Reduce Head Count, “Low Oil Prices”). Both companies have a major presence in the Marcellus/Utica and both blame low oil prices for the layoffs. Their customers (exploration and production companies) are scaling back and not drilling as much, and for what drilling they do they are now squeezing oilfield services companies like crazy to lower costs. It certainly makes sense, on paper, for these companies to take drastic actions like this. But that’s not much comfort for the 7,000 families who are losing the jobs. Baker Hughes employs 62,000 people. The 7,000 jobs cut represent 11% of their workforce. Baker Hughes CEO Martin Craighead called the coming layoffs the “crappy part” of his job and the thing he really “hates” about the drilling industry…
Read More “Baker Hughes Announces 7,000 Layoffs Due to Low Oil Price”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | Regulation

Obama’s Faint Praise of Natgas in State of Union, Inhofe’s Rebuttal
January 21, 2015January 21, 2015

Last night was the second-to-last State of the Union speech to be given by our Dear Leader, Barack Hussein Obama (hallelujah!). While Obama gave credit to the oil and gas industry for generating most of the jobs created during his pathetic presidency, he also said he wants to regulate it more. Typical. He persists in calling carbon, the stuff you breathe out with every breath, “pollution” and he’s hellbent on regulating it–even though at the same time he admits we’re producing less of it! Go figure. Below we have the section of Obama’s speech where he talks about energy, including shale gas, along with the response from Sen. Jim Inhofe, the chairman of the Senate Environment and Public Works Committee. We love Inhofe–he doesn’t suffer fools well and he minces no words about Obama’s out-of-control regulatory mandates. We like Inhofe’s take: Americans are resilient. Together we can survive the Obama Administration…
Read More “Obama’s Faint Praise of Natgas in State of Union, Inhofe’s Rebuttal”
Energy Services | Industrywide Issues | Jobs | Schlumberger

Schlumberger Firing 9,000 to Reduce Head Count, “Low Oil Prices”
January 16, 2015January 16, 2015

Wow…is about all we can say. Yesterday Schlumberger (pronounced Shlum-Bur-Zhay), the world’s (and the U.S.’s) largest oilfield services company, issued its fourth quarter 2014 and full-year 2014 operating results. Although revenues in 4Q14 rose 6.2 percent to $12.6 billion, earnings, what they pay investors, decreased by 82%–to $302 million for the quarter, largely because of “one-time charges.” The radical drop in oil prices has deeply affected Schlumberger. However, it wasn’t their financial results but this short mention in yesterday’s update that caught everyone’s attention: “In response to lower commodity pricing and anticipated lower exploration and production spending in 2015, Schlumberger decided to reduce its overall headcount to better align with anticipated activity levels for 2015. Schlumberger recorded a $296 million charge associated with a headcount reduction of approximately 9,000.” Ouch. It makes Doug “the ax” Lawler over at Chesapeake look like a junior achiever by comparison. Schlumberger employs about 120,000 worldwide, so 9,000 represents 7.5% of their workforce. Gone…
Read More “Schlumberger Firing 9,000 to Reduce Head Count, “Low Oil Prices””