OFS Co. Danos Moves Pittsburgh Office to Ohio, Expands in Utica
Some 70 years ago Allen Danos Sr., a descendant of south Louisiana farmers, borrowed $2,000 to start a small tugboat company with his brother-in-law. The small business grew and expanded into the oil and gas business, attracting customers like Gulf Oil (which later became Chevron). Over the years Danos has continued to grow. Today it is an oilfield services company (OFS) servicing some of the world’s largest drillers with coating, construction, environmental, fabrication, instrumentation and electrical, production workforce, project management, consulting and more. Danos is still headquartered in Louisiana (with multiple offices in that state), but also with major offices in Texas–and in the Marcellus/Utica region. Danos is expanding in our region, opening a new facility in Martins Ferry, OH. They’ve also decided to close the Canonsburg, PA office and merge it into the Martins Ferry office. Here’s the announcement…
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Compressor Engineering Corp. (CECO) popped the cork on completing 50 years of business in 2014 when it discovered it had a huge problem. The company had expanded into the pipeline business–laying pipelines–and the people the company had hired to manage that part of the business were dishonest, according to CECO. Money the company thought it had wasn’t there–but they still had to complete projects already signed and sealed. So the company, which works in Ohio and Pennsylvania, completed the projects, borrowing heavily to do it. They nearly went bankrupt. After exiting the pipeline business in Ohio, they considered shutting down the company. But then a miracle happened. One of CECO’s core businesses is manufacturing pipeline valves. As it happens, pipelines that used to flow gas from the Gulf Coast to the northeast were beginning to reverse and flow Marcellus/Utica gas the other way. That required a special kind of valve–manufactured by CECO. You can probably guess where this story is going…
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 
A California company that manufactures small electric-generating plants that run on natural gas, has just sold three more of their “microturbines” to midstreamers in the Marcellus Shale play. This is not the first time Capstone Turbine Corporation has sold their devices to pipeline companies in the Marcellus (see 
A former U.S. Steel pipe manufacturing plant near Pittsburgh (in McKeesport) has been leased to Dura-Bond Industries and will re-open in the next 6-9 months, according to the president of Dura-Bond. The plant will hire around 100 people (fantastic news for Pittsburgh). According to the Pittsburgh Business Times, Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina–will use Dura-Bond pipe. Our conclusion: One of the reasons (perhaps THE reason) for the McKeesport facility re-opening is to produce Atlantic Coast Pipeline pipes…
Italian company Pietro Fiorentini has been, since 2013, warehousing and selling pressure regulators and valves for the natural gas industry out of rented office space in Wheeling, WV. Pietro Fiorentini actually manufactures the equipment they sell and for the past four years has held an option to purchase land in the Weirton, WV Three Springs Business Park. The company has just gotten off the pot and on Tuesday officials signed the paperwork to buy the land. Pietro Fiorentini will build a $9 million factory on Weirton site to manufacture the equipment they sell. Eventually the manufacturing plant will employ 150 people…
Can you actually use a mathematical formula to figure out better ways to plan how to drill shale gas wells? It turns out the answer to that question is a resounding, “Yes!” A chemical engineering professor at Carnegie Mellon University, along with several Ph.D. students have, working with EQT, pioneered research that figured out how to turn 14,000 water truck trips to a well site into 1,400 trips–an “order of magnitude” difference. That is a big deal in the drilling industry. Using mathematical formulas–something called “mixed-integer optimization”–Professor Ignacio Grossmann and the other researchers tackled how to make processes in the shale gas industry more efficient. They published a paper in the AIChE Journal in 2016 titled, “Strategic Planning, Design and Development of the Shale Gas Supply Chain Network” (full copy below). The paper “presents a mixed-integer nonlinear programming (MINLP) model to optimally determine the number of wells to drill at every location, the size of gas processing plants, the section and length of pipelines for gathering raw gas and delivering processed gas and by-products, the power of gas compressors, and the amount of freshwater required from reservoirs for drilling and hydraulic fracturing so as to maximize the economics of the project.” Er, right. As you can tell, it’s complex. But it’s also very interesting and relevant for drillers and others in the industry, which is why we bring it to you. Below is a quick summary/overview of the paper, a video of Prof. Grossmann describing the research, and a copy of the paper itself…
Headquartered in Houston, Texas, Exterran Corporation (with 5,400 employees) specializes in natural gas compression production equipment and processing facilities. They design, build and operate compressor stations and natural gas processing plants. In 2012 MDN reported on a contract Exterran won to build three natural gas processing plants in West Virginia (see 
Keane Group is a Texas-based oilfield services company that provides fracking, wireline and top-hole air drilling services to oil and gas companies in the Marcellus/Utica as well as several other major basins. In January, Keane announced they were buying out Canadian-based Trican Well Service for $247 million (see 
Calling all vendors (i.e. supply chain companies) and workers who want a piece of the action in building the Dominion’s $5 billion, 594-mile Atlantic Coast Pipeline–a natural gas pipeline that will stretch from West Virginia through Virginia and into North Carolina. Dominion is currently holding in-person “construction expos,” as well as hosting an online form for those where those with an interest in selling to or working for the project can register that interest. Yesterday Dominion held a construction expo in Bridgeport, WV. Today they’re holding one in Elkins, WV. And over the next week or so they will hold more construction expos–across Virginia and even in North Carolina. Dominion is looking for suppliers for things like gravel and concrete, vehicles, construction supplies, welding and more. Here’s the low-down on how you can sign up to help build the Atlantic Coast Pipeline…
Some of the first businesses that will profit from the mighty Shell ethane cracker being built in Beaver County, PA will be small, local businesses. Restaurants, banquet halls, hotels, drug stores, real estate…the list goes on. But even small businesses that want a piece of the Shell cracker plant action don’t automatically have smooth sailing. Trying to get Shell to promote a business to its workers is hard work. Businesses report talking to Shell and being told that the company won’t help them by promoting them to cracker plant workers (a bit un-neighborly if you ask us). But that’s the life of an entrepreneur. You encounter brick wall after brick wall and you find a way to go through it, or over it, or around it, or under it. That’s what several small businesses in Beaver County are doing with Shell…
Hey, it’s great when the oil and gas industry is booming (figuratively)–when the drill bits are chewing away at rock and dirt and when fracking is blasting rocks apart. Love it! But it really sucks when the drill bits go quiet–especially for companies in the supply chain, those who sell goods and services to the industry. Obviously it helps to be diversified–to sell your goods and services to customers outside the o&g industry. That’s the approach taken by the prescient MMR Constructors Inc. MMR services a number of industries, but they LOVE the oil and gas industry–upstream, midstream and downstream. MMR, based in Baton Rouge, LA, is building a sizable new office in Lawrence, PA. They sell to the Marcellus/Utica industry. MMR is “hoping” Marcellus/Utica activity picks up again. But what they really have their eye on is the coming manufacturing boom that will follow Shell’s ethane cracker plant, once it is up and running…
