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Guest Post: Pennsylvania Drilling Moratorium – Good or Bad?
January 9, 2014January 9, 2014

Before Pennsylvanians head to the polls in November to elect a new governor and new legislators, they may want to consider the consequences of installing Democrats to re-assume power in the state. Specifically, Democrats have vowed to slap an ongoing moratorium–essentially a ban–on Marcellus Shale drilling should they regain control. MDN has been one of the few places in the media to even cover this story, and we’ve called it just what it is: economic insanity (see PA Democrat Party Votes to End Marcellus Shale Drilling Statewide).

MDN friend and contributor Chris Acker, a Pennsylvania property owner and geological engineer with an MBA, does a deep dive into the issue to explore what would happen should PA slap a moratorium on new shale drilling. Hint: It’s like experiencing someone’s worst nightmare…
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Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | NGLs | Pipelines | Processing Plants | Research

Must-Read IHS Report: Midstream/Downstream Spending Hits $90B/Yr
January 8, 2014January 8, 2014

Information Handling Services, or IHS, is the publisher of choice for the American Petroleum Institute (API). A new API/IHS study was published in December, but apparently just released to the public yesterday by the API. The study is titled “Oil & Natural Gas Transportation & Storage Infrastructure: Status, Trends, & Economic Benefits” (full copy embedded below).

We previously told you the API/IHS estimates each year drillers in the U.S. spend on the order of $150 billion to drill new oil and gas wells (see US Spending $150B+ to Drill New Oil & Gas Wells Each Year). MDN editor Jim Willis heard at the recent Platts Global Energy Outlook Forum that midstream-specific spending is only $15 billion per year (see Energy Industry Leaders Gather at Platts Forum in NYC). This new IHS report provides further clarification on spending in the midstream and downstream. If you lump new yearly spending together for all midstream (pipelines & processing plants) and downstream (refineries and distribution), IHS says the number was actually $53 billion in 2010, and had rocketed to nearly $90 billion in 2013. IHS researchers believe spending will remain around $90 billion in 2014 and something close that, per year, until 2020. Truly astonishing numbers. And that’s not the only revelation contained in this “must read” report. Like, there are 1 million new jobs on the way because of all this spending…
Read More “Must-Read IHS Report: Midstream/Downstream Spending Hits $90B/Yr”
Industrywide Issues | Jobs

Handy New Webpage for Locating Marcellus Industry Jobs
December 30, 2013December 30, 2013

The Marcellus Shale Coalition is perhaps the premier organization of its kind–made up of drillers and associated supply chain companies from huge multi-national corporations down to local businesses with a handful of employees. Recently the MSC introduced a new webpage that at first glance may seem rather unremarkable–but to MDN it’s a big deal. Some smart person at the MSC said, “Hey, why don’t we list our member companies on a webpage, and link the company name to the jobs/career info on their respective websites?” Simple! And brilliant.

The MSC did just that, and result will save people who are looking for a job in the Marcellus Shale hours of time in their job search. Here’s the location of the MSC’s new “Find a Job” page, along with our analysis of what it is, and what it isn’t…
Read More “Handy New Webpage for Locating Marcellus Industry Jobs”
Coterra Energy (Cabot O&G) | Economic Impact | Energy Companies | Industrywide Issues | Jobs | Pennsylvania | Supply Chain | Susquehanna County

Scranton TV Station: NEPA Community Benefits from Cabot (Video)
December 19, 2013December 19, 2013

An interesting TV segment was recently filmed about the role of Cabot Oil & Gas in providing local jobs and a boost to the local economy where they drill in rural Susquehanna County, PA. The video, filmed by Scranton TV station WNEP Channel 16, highlights the partnership Cabot has developed with several vendors (supply chain) and points out Cabot’s long-term commitment to the community–a commitment that will go on for decades to come.

If you want “the other side of the story,” the side that shows what a good corporate citizen looks like and how gas drilling enormously benefits an entire community, take the time to watch this enlightening 6-minute video:
Read More “Scranton TV Station: NEPA Community Benefits from Cabot (Video)”
Economic Impact | Ethane | Industrywide Issues | Jobs | Ohio | Processing Plants | Statewide OH | Statewide WV | West Virginia | Wood County

More Details Leak About Proposed WV Ethane Cracker Plant
December 9, 2013December 9, 2013

A few weeks ago WV and Brazilian-based Odebrecht announced plans to build an ethane cracker plant near Parkersburg, WV (see WV Announces Brazilian Company to Build Ethane Cracker Complex). Wayne Dunn, the president of the commission that governs Wood County, WV where the cracker would be built, recently said some very interesting things about the cracker. One comment: he’s known about the Odebrecht cracker for more two years! Congratulations to a politician that can keep a secret that long.

Dunn also said he pegs the chances that the Odebrecht cracker will be built at somewhere between 60-80%. He says it’s far from a done deal, but the odds are better that it will be built than not. Here’s a few more interesting “insider” insights into the proposed cracker plant coming to Parkersburg, WV:
Read More “More Details Leak About Proposed WV Ethane Cracker Plant”
Industrywide Issues | Jobs | Statewide WV | West Virginia

One of WV Gov. Tomblin’s Biggest Fears: Untrained Workers
December 9, 2013December 9, 2013

Gov. Earl Ray Tomblin went to Europe to find him an ethane cracker plant, and by golly he did (see WV Announces Brazilian Company to Build Ethane Cracker Complex). Tomblin knows that an ethane cracker plant is an economic bonanza like none seen in the northeastern U.S. in generations–maybe centuries. Yes, it’s that big a deal–and he knows it. Kudos to Gov. Tomblin for persevering and finding a cracker plant for WV.

Now that it looks as if a cracker will come to WV, something else is keeping Gov. Tomblin up at night. Last week at a breakfast meeting Tombin said that one of his biggest fears is not having a trained workforce in WV to build and operate the cracker. So Gov. Tomblin is now on a new mission: get WV residents trained and ready…
Read More “One of WV Gov. Tomblin’s Biggest Fears: Untrained Workers”
Economic Impact | Electrical Generation | Energy Services | Industrywide Issues | Jobs | Lancaster County | Pennsylvania | Pipelines | Williams

New Electric Power Plant in Lancaster Powered by Marcellus Gas
December 5, 2013December 5, 2013

Even though there’s no Marcellus Shale under Lancaster County, PA, the county is about to benefit from the Marcellus Shale. A new electrical generating power plant is planned for Lancaster County that will be powered by cheap Marcellus Shale gas from Pennsylvania–meaning lower electricity prices for the 390,000 homes it will power. It also means a new 9-mile natural gas pipeline will be built, and a 7-mile water pipeline.

Lots of jobs in building the plant and the pipelines, some landowners will benefit from having the pipeline cross their property, and everyone in the region gets lower cost electricity. It’s a win/win/win situation–thanks to the Marcellus…
Read More “New Electric Power Plant in Lancaster Powered by Marcellus Gas”
Industrywide Issues | Jobs | Ohio | Statewide OH | Utica Shale

The Real Employment Numbers in Ohio’s Utica Shale
December 3, 2013December 2, 2013

There’s a lot of trash talking about how many jobs shale drilling “actually” creates–by those desperate to stop drilling. In classic disinformation style they throw out wildly inflated numbers, say those of us on the pro-drilling side made those claims, and then knock down the “straw man” they created when employment numbers don’t measure up. “See! The drilling industry lied to you about how many jobs they would create.” That’s the tact they use to try and discredit this jobs-creating industry.

The truth is, shale drilling has created thousands of new, direct jobs in the oil and gas industry–in Pennsylvania, West Virginia and Ohio. It’s also created thousands more jobs in related industries, like environmental consulting, trucking, etc. So let’s, for a change, talk about real numbers, shall we? The Ohio Dept. of Job and Family Services, official tallying agency for employment numbers in Ohio, says Ohio’s natural gas and shale employment numbers have gone up 30% over the past two years…
Read More “The Real Employment Numbers in Ohio’s Utica Shale”
Industrywide Issues | Jobs

Shale Drilling Jobs Among CNN’s Top 100 “Best Jobs in America”
November 26, 2013November 26, 2013

CNNMoney recently posted their “Best Jobs in America 2013” list which is a ranking of the top 100 jobs with “big growth, great pay and satisfying work.” MDN had a quick scan through the list and found many of the jobs are either directly or indirectly related to the shale drilling industry. Here were the six jobs from the list directly related to energy/shale drilling:
Read More “Shale Drilling Jobs Among CNN’s Top 100 “Best Jobs in America””
About MDN | Allegheny County | Industrywide Issues | Jobs | MDN Resources | Pennsylvania | Supply Chain | Washington County

Want to Plug in to the Marcellus Industry? These Groups Can Help
November 25, 2013November 25, 2013

For individuals living in Greater Pittsburgh looking for a job in the drilling industry, or companies looking to break into the Marcellus Shale supply chain, the Pittsburgh Business Times published a helpful list of organizations (and their websites) that may be able to give you an assist with your pursuit…
Read More “Want to Plug in to the Marcellus Industry? These Groups Can Help”
Anti-Drilling/Fossil Fuel | Industrywide Issues | Jobs | Research

Anti-Drilling Cabal Issues Biased Report on Marcellus/Utica Jobs
November 22, 2013November 22, 2013

A collection of highly partisan anti-drillers (people who abjectly hate fossil fuels) get together and issue a “report” that claims to be backed by “research” (a few interviews with a few people in a few counties), and it’s instantly news. The officious sounding and never before heard from Multi-State Shale Research Collaborative has just issued a report saying, “Nah, the Marcellus and Utica Shale industry doesn’t create all that many jobs after all.” Er, right. Who is the Multi-State Shale Research Collaborative? A group of five anti-drilling groups who use the word “nonpartisan” so many times if we had a nickle for every time it appears on their websites…you get the idea. This new league of anti-drillers (“cabal” about pegs it) attempts to appear nonpartisan and above it all. They are not. They are completely partisan on the issue of drilling. How do we know? Look at who funds them and their so-called research on employment: The Heinz Endowments, Hillsdale Fund, Park Foundation, and Stoneman Family Foundation. Need we say more?

Below are the press release and the full report issued by the cabal. It’s not really worth anyone’s time to read it–we present it to you so you are informed of the latest coordinated and scripted attack against shale drilling–so when you see Reuters/Bloomberg/AP/Gannett et all pick it up and breathlessly report it as real news, you’ll know what you’re looking at. Just more propaganda from the usual suspects…
Read More “Anti-Drilling Cabal Issues Biased Report on Marcellus/Utica Jobs”
Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | West Virginia | Wood County

Analysis: Why Parkersburg, WV for a Cracker Plant Complex?
November 20, 2013November 20, 2013

Don Surber from the Charleston Daily Mail writes a good analysis article in today’s edition that attempts to answer the question, “Why would Brazilian company Odebrecht pick Parkersburg, WV to build an ethane cracker plant?” Surber argues the selection of Parkersburg as the location vaults it into potentially being the most important city in the entire state of WV. He’s right.

Surber’s main point: Don’t focus on the ethane cracker, as nice as that will be. Instead, it’s the three polyethylene plants Odebrecht is going to build that are the real story, the real diamond, if (still a big if) the ethane cracker gets built. Why? It is the polyethylene (plastics) plants that will create a renaissance in manufacturing (i.e. jobs) in the region…
Read More “Analysis: Why Parkersburg, WV for a Cracker Plant Complex?”
Braskem | Economic Impact | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Processing Plants | Statewide WV | West Virginia | Wood County

WV Announces Brazilian Company to Build Ethane Cracker Complex
November 15, 2013November 15, 2013

Yesterday West Virginia Gov. Earl Ray Tomblin was flanked by representatives from Brazilian chemical company Odebrecht to announce the company has chosen a site near Parkersburg, WV (third largest city in the state) to be the potential site of an ethane cracker plant complex. The complex will have an ethane cracker, three polyethylene plants and infrastructure for water treatment and energy co-generation. Gov. Tomblin was justifiably proud to make the announcement, calling it a “game changer” for West Virginia. He’s right.

Odebrecht will build the plant, and once built, it will be operated by Braskem, another Brazilian company with operations in Pennsylvania (51% owned by Odebrecht). MDN told you about Braskem’s interest in a WV ethane cracker all the way back in March 2012 (see Second Company Interested in Building Cracker Plant IDed). So it appears Odebrecht/Braskem have been sniffing around the concept of building a cracker in WV for at least a year and a half. We have a lot of coverage of the announcement below. The key word here is: caution. Like the Shell cracker, this is very early in the process and not yet a 100% done deal…
Read More “WV Announces Brazilian Company to Build Ethane Cracker Complex”
Beaver County | Braskem | Economic Impact | Energy Companies | Energy Services | Ethane | Industrywide Issues | Jobs | Odebrecht | Pennsylvania | Processing Plants | Shell | Statewide PA | Statewide WV | West Virginia | Wood County

Clash of the Ethane Cracker Titans: PA vs WV Smackdown
November 15, 2013November 15, 2013

As MDN mentions in today’s companion story about the newly announced potential ethane cracker plant complex to be built near Parkersburg, WV, there is angst in Pittsburgh about whether or not a WV cracker plant will help or harm the potential cracker plant to be built by Shell northwest of Pittsburgh in Beaver County, PA.

The Pittsburgh Business Times, a bit critical and skeptical of the WV cracker (no surprise there), tackles the question of, “Is you a friend or is you foe?”…
Read More “Clash of the Ethane Cracker Titans: PA vs WV Smackdown”
Economic Impact | Ethane | Industrywide Issues | Jobs | Processing Plants | Statewide WV | West Virginia | Wood County

Officials Say Cracker Will be Truly Huge for WV Jobs & Economy
November 15, 2013November 15, 2013

One final story in MDN today about WV ethane cracker mania (see our other two stories posted today for full coverage of the announcement from yesterday). Although WV Gov. Earl Ray Tomblin and officials with the companies that would build and operate a proposed ethane cracker in WV–Odebrecht and Braskem–were careful to say this is a preliminary announcement and not a 100% done deal, it’s still just too juicy a carrot to leave alone for the Tomblin administration.

Although Tomblin says Oderbrecht is “exploring” the possibility of building an ethane cracker, he’s also shouting that this is the best thing for West Virginia since sliced bread was invented (our words, but certainly his sentiment). And sure enough, right on the heels of his announcement, Tomblin officials were talking about the thousands of new jobs this project will generate and the incredible economic impact it will have on WV. IF built, they are 100% correct, this will be an economic and jobs-generating engine like none we’ve seen in the northeast for generations–no doubt about it. The key word, though, is IF…
Read More “Officials Say Cracker Will be Truly Huge for WV Jobs & Economy”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Jobs | Lackawanna County | Luzerne County | Pennsylvania | Supply Chain

NE PA Audience Hears How to Plug in to the Marcellus Supply Chain
November 15, 2013November 15, 2013

The Marcellus means jobs and an economic boom for northeast Pennsylvania. That was the message delivered yesterday in Wilkes-Barre at a Marcellus forum hosted by State Sen. John Yudichak and State Sen. John Blake (both from the Scranton/W-B area). The forum was attended by over 100 people–local contractors, trade unions, small manufacturers and others. MDN friend John Augustine from the Marcellus Shale Coalition was one of the featured speakers, with lots of good tips for those who want to plug in to the Marcellus supply chain.

The Wilkes-Barre Times Leader was on hand and filed this helpful report:
Read More “NE PA Audience Hears How to Plug in to the Marcellus Supply Chain”