While still in its infancy, the responsible development of the region’s clean-burning Marcellus Shale gas is helping to create tens of thousands of jobs. This development, and the workforce and job opportunities that it presents, will be highlighted at an upcoming “Workforce Summit” hosted by the Marcellus Shale Coalition (MSC) on June 16. Click HERE for more event details and to register.
“An economic boon to Pennsylvania for a long time”: “Mostoller said he’s living his dream in running this business. He credited Cabot Oil & Gas – a firm his logistics company has worked with in the eastern part of the state since 2008 – for their insight into the industry. “My business relationship with Houston-based Cabot Oil & Gas has had a positive impact on me and my family,” he said. The Somerset plant is expected to require 65 full-time operators once it’s running. … Mostoller said he believes the natural gas industry can be an economic boon to Pennsylvania for a long time. “The guy that’s going to drill the last Marcellus Shale well hasn’t been born yet,” he said. (Daily American, 6/4/10)
Clean-burning, job-creating Marcellus gas a “Buried Treasure”: “V&M Star’s $650 million investment in a new pipe mill here is a direct result of an expected rise in demand for steel tubular goods used in the Marcellus shale play. Other companies – including steel-tube manufacturer TMK IPSCO in Brookfield, Boardman-based Dearing Pump and Compressor and Patriot Water Treatment in Warren – recently have expanded in response to the rise in natural-gas exploration. (Youngstown Vindicator, 6/6/10)
“One of the most significant natural-gas finds in history”: “The money and the jobs could flow as quickly from the Marcellus shale as the natural gas itself. The Marcellus, called one of the most significant natural-gas finds in history, is expected to create more than 200,000 jobs and produce the equivalent of 87 billion gallons of oil — equal to 12 years’ worth of U.S. energy consumption. And we’re sitting on top of it. … A recent report by Pennsylvania State University suggests the financial benefits of all this drilling are likely to spread in the form of $1.8 billion in tax revenue over the next decade. Hundreds of Pennsylvania landowners also stand to benefit. Pitzarella said in a September interview that a typical property owner could collect up to $3 million in lease payments and royalties over the life of a well. (Erie Times, 6/4/10)
The “Marcellus Multiplier”: “Kathryn Klaber, president of the Marcellus Shale Coalition…dubs this extensive supply chain the “Marcellus Multiplier,” as it compounds business-to-business spending and job creation. “There is an infrastructure network of supply companies all across the formation,” Klaber said. “It’s a great domestic opportunity.” Overall, companies involved in Marcellus shale development plan to increase their investment spending to $8.8 billion in 2010, up from $4.5 billion in 2009, according to a PSU study released in May. Investment spending is projected to be more than $11 billion in 2011. … Overall, the PSU study estimates that the Marcellus shale drilling industry directly created more than 21,000 jobs in Pennsylvania in 2009. (Youngstown Vindicator, 6/6/10)
Responsible shale-gas development in Pa. a $3.77B stimulus: “Drilling for natural gas in the Marcellus shale has pumped hundreds of millions of dollars into the Pennsylvania economy, a study by Penn State University concluded. The study concluded the Marcellus gas industry provided a “direct economic stimulus of $3.77 billion” to the Pennsylvania economy while generating $389 million in state and local taxes and creating more than 44,000 jobs. … Spending plans discussed with companies in the industry suggested the Marcellus shale could generate more than $8 billion in 2010, including more than $785 million in state and local taxes, and cause job gains to double to more than 88,000. The rate of growth is expected to taper off in 2011, but the industry is expected to bring in nearly $1 billion in tax revenues to Pennsylvania and provide 100,000 jobs. “By 2015, the Pennsylvania Marcellus could be producing more than 7 billion cubic feet per day, substantially exceeding all gas output from offshore federal waters,” the study said. Other findings by the study’s authors included one that every $1 spent by the industry generates $1.90 of total economic output. (Grand Junction Daily Sentinel, 6/5/10)
250 Marcellus-related jobs en route to central PA: “A gas industry “field of dreams” is rising up out of a former corn field in Muncy and Muncy Creek townships. On Thursday, state, county and local officials, developers and others gathered to celebrate a natural gas industrial park being developed on more than 200 acres along Industrial Park Road in Muncy Industrial Park. … Once the facility is completed, between 200 and 250 people will be employed there, Banta said. … “I’ve never seen anything like this in my life,” Fish said of the development activity spurred by natural gas development. … Yaw touted the economic benefits of developing natural gas in Pennsylvania, including a projected 100,000 jobs and $1 billion in tax revenue created this year – and that while the state is mired in a recession. “That is a pretty significant impact on our state,” Yaw said. (Williamsport Sun-Gazette, 5/28/10)
PSU prof.: “This is a game changer”: “Terry Engelder, a geoscientist at Pennsylvania State University, estimates that the Marcellus shale could contain as much as 489 trillion cubic feet of recoverable gas – enough to meet total U.S. natural gas demand for 20 years. “This is a game changer,” Engelder said. “In terms of its effect on the American energy potential, this is the biggest thing to happen in a long, long time.” Fully developed, the shale would be the largest in North America and the second-largest in the world, with the potential to produce the energy equivalent of 87 billion barrels of oil. (Youngstown Vindicator, 6/6/10)
40 Marcellus-related jobs created in Sewickley; “100 more jobs may be added as drilling activity grows”: “Two companies are bringing new life to a century-old Green Tree rail yard from business generated by the region’s booming natural gas production. Modern Transportation and Arrow Materials Services, of Sewickley have created 40 truck driver and materials-handling jobs at the Rook Rail Yard, owned by Wheeling and Lake Erie Railway Co. Company executives said Thursday the railroad brings railcars from other locations to Green Tree loaded with specialized sand for a fracturing process used in Marcellus Shale drilling. … Modern Transportation President Patrick Cozzens said 30 trucks are used, along with 80 to 100 trucks owned by others, which are all needed to maintain 24/7 operation. Cozzens said 100 more jobs may be added as drilling activity grows. (Pittsburgh Tribune-Review, 6/4/10)
Marcellus Shale grows technology: “Marcellus Shale resources can help transform Pennsylvania. …Marcellus Shale gas producers plan to spend significantly more in 2010 and 2011, generating more than $8 billion in value added in 2010 and an additional $10 billion during 2011. This increased economic activity will generate almost $1.8 billion in additional state and local tax revenue during 2010 and 2011. Employment in the state will expand by more than 88,000 jobs during 2010 and more than 111,000 jobs during 2011. This dramatic increase in drilling activity is occurring during a period of general economic recession and relatively low natural gas prices. (Central Penn Business Journal, 6/1/10)
OH Congressman says Marcellus creating “widespread regional growth”: “Although Pennsylvania has disproportionately benefited from the emerging natural-gas industry, U.S. Rep. Tim Ryan of Niles, D-17th, believes the significant economic impact of the Marcellus shale industry will lead to widespread regional growth. “The Marcellus shale will give us the opportunity to build a natural-gas cluster,” Ryan said. “Given the fact that V&M is already expanding here, it is going to give us a chance to really exploit the Marcellus shale and parlay that into middle-class jobs.” (Youngstown Vindicator, 6/6/10)
