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Economic Impact | Industrywide Issues | Jobs | Research

America’s Cities Big Winners from Cheap Marcellus Shale Gas
March 21, 2014March 21, 2014

Yesterday the U.S. Conference of Mayors released a new study from IHS that shows the positive impact inexpensive and abundant natural gas is having on the manufacturing sector. Titled “Impact of the Manufacturing Renaissance from Energy Intensive Sectors” (full copy embedded below), the report provides analysis and detailed data on the impact for jobs and the economy in 363 metro areas across the United States. Nine key sectors are analyzed, including: Basic organic chemicals; iron and steel mills; fabricated metals; machinery; nonmetallic minerals; resin, rubber and fiber; plastics and rubber; agricultural chemicals; and petroleum and coal products. According to the report, in 2011 and 2012, demand from the Marcellus and other growing shale plays for new pipelines and mining equipment ignited the nation’s steel, iron, fabricated metals, and machinery manufacturing industries. In U.S. metro areas, these sectors saw real sales and employment jump by 17% and 9.7%, respectively, during those years.

Through 2020, the report projects energy intensive manufacturing employment will expand by more than 1% annually nationwide, with 72% of those jobs coming in metro areas. That is, America’s cities are the beneficiaries, both economically and in job growth, because of cheap natgas. Below are the key findings of the report, followed by a full copy…
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Economic Impact | Industrywide Issues | Jobs | Pipelines | Research

New Research: US/Canada Need $30B/Year on Midstream Investment
March 19, 2014March 19, 2014

In September 2013 MDN published Vol. 2 of the 2013 Marcellus and Utica Shale Databook series. In that volume we included a comprehensive list of 111 announced infrastructure (pipeline related) projects for the northeast. When we tallied it all up, the numbers were that projects in our neck of the woods will result in about $40 billion being spent over the next five years or so (see MDN’s 2013 Databook Vol 2 Finds Staggering $40B in NE Midstream Projects). The INGAA Foundation (Interstate Natural Gas Association of America) and ANGA (America’s Natural Gas Alliance) yesterday released a study they commissioned that tops our estimates–by a lot. The study is titled, “North America Midstream Infrastructure through 2035: Capitalizing on Our Energy Abundance” (full copy embedded below). Researched and prepared by ICF International, the new study shows that the U.S. and Canada together will need to spend $30 billion per year from now until 2035 on pipelines and related infrastructure just to keep pace with shale development.

ICF’s numbers add up to $641 billion in 2012 dollars over 22 years. But get this: $70 billion of that $641 will be spent in the Marcellus, according to the study. Nationwide the new spending will generate more than 432,000 jobs, add approximately $885 billion to U.S. and Canadian economies, and bring in over $300 billion in federal, state/provincial and local taxes. Truly staggering numbers. Immediately below we have the quick hit, bulleted conclusions of the report, for the time-pressed, so you can scan it. Below that the press release announcing the new study–and finally, a full copy of the study with some great charts and graphs (be sure to check out their Henry Hub price forecast through 2035 on page 24)…
Read More “New Research: US/Canada Need $30B/Year on Midstream Investment”
Allegheny County | Economic Impact | Energy Companies | Industrywide Issues | Jobs | Noble Energy | Pennsylvania | Washington County

Noble Energy’s Huge Vote of Confidence in the Marcellus
March 12, 2014March 12, 2014

Noble Energy has big plans for the Marcellus. Yesterday the company confirmed they will be new tenants in a huge new office building going up in the Southpointe business park near Pittsburgh. The new building being built by Horizon Properties will be 208,000 square feet, of which Noble is leasing 138,000 square feet. Noble’s president & CEO David Stover says the Marcellus is “the premiere gas play in the United States,” and the Marcellus figures prominently in Noble’s future plans.

Noble plans to employ 200 people in the new facility by the end of this year, and eventually–400-450 people at the facility. PA welcomes Noble to the Marcellus!…
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Economic Impact | Housing | Industrywide Issues | Jobs | Ohio | Statewide OH | Supply Chain | Utica Shale

Investment Firm Backs 3 Hotels, in Hunt for Restaurants in Utica
March 12, 2014March 12, 2014

Energy investment firm Drill Capital is not only in the process of building one hotel in the Utica Shale with plans on the boards to build two more (all in eastern Ohio), the company also wants to lure a restaurant chain to the Utica too. You don’t put up investors’ money to build hotels and restaurant in rural locations unless you firmly believe the business will be there for years to come. That’s precisely what Drilling Capital’s young founder and managing partner, Farid Guindo, believes…
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Alternative Energy | Coterra Energy (Cabot O&G) | Economic Impact | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Jobs | Meetings

MDN Interviews David Holt, President of Consumer Energy Alliance
March 10, 2014March 10, 2014

MDN editor Jim Willis recently had the pleasure of speaking by phone with David Holt, president of the Consumer Energy Alliance based in Houston, TX. David was a speaker at the recent Clean Frac’ing Conference in Houston. Jim spoke to David about the mission of CEA, who belongs to it and why, David’s views on natural gas and alternative forms of energy, and about his involvement with the recent Clean Frac’ing conference (what he heard and saw at the conference). The podcast interview below runs just over 20 minutes, please give it a listen!

Below the podcast interview are notes taken by Brittany Thomas of Cabot Oil & Gas who attended and participated on a panel discussion at the Clean Frac’ing Conference. Thanks for the notes Brittany! We bring this interview with David Holt and Brittany’s notes to you as a public service to keep you informed with how the drilling industry continues to be on the cutting edge of innovation and environmental protection…
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Belmont County | Economic Impact | Industrywide Issues | Jobs | Ohio | Supply Chain | Utica Shale

Trickle Down Shale Economics Benefit Belmont County, OH
March 10, 2014March 10, 2014

A few weeks ago MDN highlighted the results of a recent survey by Ohio University of local elected officials across 17 counties experiencing the majority of shale activity and development in Ohio (see Survey Says! OU Survey of Local OH Officials on Utica’s Impacts). Two county officials in Belmont County, OH did not participate in the survey, but agree with it’s findings. That is, Utica Shale drilling is having a major impact on their county.

Here’s a closer look at how drilling in Belmont County is affecting those who live there, including beneficial “trickle down” economics that go along with an infusion of large amounts of money…
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Economic Impact | Industrywide Issues | Jobs | Mahoning County | Ohio | Pennsylvania | Statewide OH | Supply Chain | Utica Shale | Warren County

Utica Shale Drilling Ripple Effect in Northern Part of Play
March 10, 2014March 10, 2014

Just because you don’t see a drilling rig and holes being drilled in the ground, it doesn’t mean Utica Shale drilling isn’t having enormous, positive economic benefits in a community. So says Youngstown-Warren Regional Chamber officials. They point to the hundreds of permanent new jobs at area manufacturers–jobs created and sustained directly by the drilling industry.

More on the Utica supply chain and how it’s benefiting areas that haven’t (yet) seen their own Utica wells drilled…
Read More “Utica Shale Drilling Ripple Effect in Northern Part of Play”
Economic Impact | Guernsey County | Industrywide Issues | Jobs | Ohio | Supply Chain | Utica Shale

Tiny SE OH Town Sees Hotel Construction Boom Thx to Utica Shale
March 6, 2014March 6, 2014

As we’ve previously written, one way you know shale drilling is on the horizon is when there the county clerk or county recorder’s office gets busy with title abstractors researching. We told you way back in 2012 that Belmont County, OH was about to see a drilling boom (see Belmont County, OH Drilling to Take Off Soon). How do you know when an area’s drilling is about to expand even more? When companies are willing to build not one but four new hotels–in a town with only 10,555 residents!

Here’s the story of drilling about to reach a fevered pitch in Belmont’s neighboring county, Guernsey and the little town of Cambridge which is having a boom in hotel construction…
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Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

WV Ethane Cracker – Cautious Optimism in the Mountain State
March 3, 2014March 3, 2014

The editors at the Charleston Gazette have penned an editorial about their “cautious hope” that the ethane cracker plant announced by Odebrecht for Parkersburg, WV will become a reality. As they note, coal is descending in the state, and natural gas is ascending. If the cracker plant is built–complete with environmental safeguards–it will be a huge economic bonanza for the state. Although the editors are a tad skeptical about the “drill drill drill” attitude from Gov. Earl Ray Tomblin and his administration (a Democrat, which is noteworthy), they’re willing to suspend the usual knee-jerk reaction against such projects and allow hope to bloom on the editorial page. A good sign!

From the Gazette:
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Industrywide Issues | Jobs | Pennsylvania | Statewide PA

Hundreds of Thousands of Marcellus Drilling Jobs in PA
March 3, 2014March 3, 2014

Over the past six years hundreds of thousands of jobs have been created in Pennsylvania that are either directly or indirectly tied to the Marcellus Shale drilling industry. Of that there is no dispute. It is provable and has been proven, over and over, by government agencies that count such things. Yet, when a new jobs report is issued that shows another 15,000 direct jobs have been added over the past few years, those opposed to drilling jump on the number and say, “See! See! It doesn’t create all that many jobs. They’re a lyin’ to ya–all them pro-drillers.”

Meanwhile, anti-drillers ignore the total number of 240,000 people working directly in the Marcellus Shale industry, or for companies that serve the industry (“supply chain”), in Pennsylvania. And so the anti-drilling spin machine keeps whirling around and around and around…
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Access Midstream Partners | Chemung County | Economic Impact | Energy Services | Industrywide Issues | Jobs | New York | Pipelines | Processing Plants

MDN Plants a Big Fat Kiss on Access Midstream
February 28, 2014February 28, 2014

Because it’s Friday and we’re in a jovial mood, we’ve decided to award an “at-a-boy/girl” award today, to… Access Midstream. A few years ago Chesapeake Midstream was spun off into it’s own company and later renamed Access (see Chesapeake Midstream Changes Name to Access Midstream). Access has a serious presence in the Marcellus and Utica Shale region, among other shale basins across the country.

So why the recognition today? Because even though New York politicians like Gov. Andrew “can’t-make-a-decision” Cuomo have obstinately refused to allow shale drilling in the state, Access is building a new office building in Big Flats, NY, near Corning/Elmira. The location happens to be close to the PA border and of course Access will use the office as a regional HQ for its operations in northeastern PA. Access already has a presence in the Big Flats area and has had for several years. They’ve decided it’s time to build a new regional HQ and consolidate several locations into one. The point is, Access could just as easily have built their new building a few miles away in PA, which is what 99.9999999% of other industry-related companies have done (NY is the BIGGEST loser). However, Access decided to throw us NYers a bone and build their facility, employing 135 people, in our high tax, business-unfriendly and drilling hostile state. And so we say, thank you! And, are you crazy?!…
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Braskem | Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Research | Statewide WV | West Virginia | Wood County

Economist Releases Report on WV Cracker Plant’s Economic Impact
February 26, 2014February 26, 2014

West Virginia’s coming ethane cracker plant continues to generate positive economic news. Yesterday the former director of West Virginia University’s Bureau of Business and Economic Research and professor emeritus at WVU, Tom Witt, released a study he conducted on behalf of Braskem America (i.e. Odebrecht, the company building the cracker). The new study details specifics for how many jobs and how much money the proposed cracker and associated petrochemical plants will generate. And it’s truly astonishing.

Here’s an overview of the economic miracle about to hit WV (and beyond)…
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Economic Impact | Hydraulic Fracturing | Industrialization | Industrywide Issues | Jobs | Ohio | Public Opinion | Research | Statewide OH | Utica Shale

Survey Says! OU Survey of Local OH Officials on Utica’s Impacts
February 26, 2014February 26, 2014

Two days ago the Ohio University Voinovich School of Leadership and Public Affairs released the findings of its much anticipated Ohio Shale Development Community Impact Survey. During summer of 2013, the Voinovich School distributed more than 500 surveys to local elected officials across 17 counties experiencing the majority of shale activity and development in Ohio. The survey assesses the impact of shale development within 17 counties in eastern Ohio, with a focus on population, housing, public safety, infrastructure, environment, local employment, area business activity, and economic development. Some 200 of those surveys were returned and the data tabulated.

What did the survey find? Ohio’s local elected officials say Utica Shale drilling has caused an marked increase in jobs and the occupancy rate at hotels. But Utica drilling has also caused some pollution issues and a big increase in the demand for water supplies. This is a very interesting study (full copy embedded below)…
Read More “Survey Says! OU Survey of Local OH Officials on Utica’s Impacts”
Economic Impact | Industrywide Issues | Jobs | Processing Plants

ACC Says $100B of New Shale-Related Petrochemical Spending on Way
February 24, 2014February 24, 2014

The American Chemistry Council trade group last week announced that shale gas in the U.S. is having an incredible economic impact on the chemical industry. According to the ACC, who keeps track of these things, 148 shale-related chemical industry projects, valued at $100.2 billion, have been announced–so far. These projects include new factories, expansions and process changes to increase capacity. The ACC says the new spending could lead to $81 billion per year in new chemical industry output and 637,000 permanent new jobs by 2023. Astonishing. More than half of the investment is by firms based outside the United States.

Here’s the ACC announcement from last week:
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Beaver County | Economic Impact | Energy Companies | Ethane | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Shell

Beaver County, PA – In the Marcellus/Utica Catbird Seat
February 21, 2014February 21, 2014

In many ways, Beaver County, PA is in the catbird seat with respect to the Marcellus and Utica Shale. The county has seen some Marcellus drilling with 17 unique well permits were issued for Beaver for the last four months of 2013 according to the latest volume of the Marcellus and Utica Shale Databook. However, it is Beaver’s geography for reasons other than drilling that gives it its advantage: the Ohio River flows through Beaver; two interstate highways pass through; lots of railroads; and of course, close to the Pittsburgh International Airport.

Beaver is also the chosen location for Shell and their $2-$3 billion ethane cracker plant. It’s been a roller coaster of will they or won’t they build it? Lately, it certainly seems like Shell is favoring a green light for the project–but only when they finally buy the property on which a now closed zinc plant sits will everyone breath a sigh of relief that the project is a done deal. (See Shell to Begin Demolition at PA Ethane Cracker Site Early 2014 for the latest.) Even if Shell doesn’t build the cracker plant, Beaver County officials say there’s still a lot happening in the county and the future looks bright, because of the Marcellus…
Read More “Beaver County, PA – In the Marcellus/Utica Catbird Seat”
Broome County | Economic Impact | Industrywide Issues | Jobs | New York | Pennsylvania | Statewide NY | Statewide PA

PA’s Long-Lived Marcellus Renaissance Can’t be Denied, Even by NY
February 10, 2014February 10, 2014

Judging by the stories we’re now seeing, must be Gov. Cuomo’s internal poll numbers are a lot worse than we thought. So bad that his buddies at Gannett need to try and prop him up by rewriting current history. Get this, the headline for a story in the Binghamton Press & Sun-Bulletin actually attempts to make the claim that the economic miracle happening right across our border in PA…isn’t actually happening! Talk about chutzpah. “Pay no attention to all of those jobs–all of that money–all of the new tax revenue. None of it’s real. It’s all a flash in the pan. Here today, gone tomorrow.”

Wow. We guess you can fool some of the people all of the time, going by the PSB’s propaganda…
Read More “PA’s Long-Lived Marcellus Renaissance Can’t be Denied, Even by NY”