What They’re Saying: Marcellus Production Continues to “Lead the Way”

Oil and natural gas are driving the U.S. economy,” says a new API survey released earlier this week. At the same time the U.S. Energy Information Administration’s monthly drilling report, found Marcellus Shale production at “record levels.” Taken together, the benefits of safe, local natural gas development – as well as the soaring production levels – equate to even more broad economic and environmental opportunities for our local communities, families and small businesses alike.

Here’s what they’re saying about these game-changing benefits:

RECORD-BREAKING PRODUCTION

  • Marcellus Shale “Leads the Way”: After Marcellus shale natural gas production topped 15 billion cubic feet per day in July, it is expected to surpass 16 billion cubic feet per day in October, the U.S. Energy Information Administration said Monday. … July was the first time Marcellus production had met the mark of 15 billion cubic feet per day. The EIA estimated that daily production in October will rise by 222 million cubic feet per day to just slightly more than 16 billion cubic feet per day. …  For September, the Marcellus Shale is expected to lead the way [nationally] in daily production. (Ellwood City Ledger, 9/9/14)
  • Marcellus Shale Production Continues to “Reach Record Levels”: Gas production from the Marcellus Shale will continue to reach record levels through at least October, federal analysts said Monday. The EIA expects output from the country’s biggest shale play to surpass 16 billion cubic feet per day in October, continuing its climb from about 12 billion in January. The majority of that production is from wells in Pennsylvania and West Virginia. (Tribune-Review, 9/8/14)
  • EIA: Marcellus Projected to Exceed 16 BCF/Day: The Marcellus Shale basin is expected to produce more than 16 billion cubic feet of natural gas per day by October, according to a new projection by the U.S. EIA. According to the administration’s monthly drilling productivity report, new wells are expected to yield 752 million cubic feet per day. (Pittsburgh Business Times, 9/8/14)

FUELING OUR TRANSPORTATION SECTOR

  • New Natural Gas Fueling Station is “Good for the Region”: Clean Energy Fuels Corp., the largest provider of natural gas transportation fuel in North America, is preparing for $1.08 million in upgrades to a Lehigh Gas Partners fueling station in South Whitehall Township. … “Serving on the transportation committee, I am excited to see this important addition to the Lehigh Valley’s transportation network,” Schlossberg said in a press release. “This will be good for the region and provide customers and businesses with this important alternative fuel.” …Annual production at the station is 12,000 gasoline gallon equivalents of compressed natural gas. Based on commitments from fleets that would use the upgraded facility, Clean Energy estimates that annual production in year one will increase to 60,000 gasoline gallon equivalents and reach 447,000 in the 10th year. “This project will not only help to invigorate the energy market, but it will also create dozens of jobs in the region,” McNeill said. (Lehigh Valley Business, 9/10/14)
  • Philadelphia Gets its First Retail CNG Fueling Station: Gov. Corbett on Tuesday formally opened Philadelphia’s first retail compressed natural gas (CNG) fueling site at a BP station on Fox Street in East Falls. … VNG and its partners Aqua Pennsylvania, Comcast and HB Electric Services last year received a $235,000 state grant to purchase 32 CNG vehicles. The grant also supported the development of the fueling station. There are about a dozen public retail stations surrounding the city. (Philadelphia Inquirer, 9/11/14)
  • Pa. Using More of “Game-Changing Energy Resources”: “Pennsylvania has the second-largest energy field in the world, and cities from Pittsburgh to Williamsport to Towanda to Philadelphia are benefiting from our game-changing energy resources,” Corbett said. “The convenience of a local CNG fueling station makes it possible for local governments, organizations, companies and residents to make the switch to this cleaner and affordable alternative fuel. By harnessing natural gas, we are reducing greenhouse gas emissions, improving air quality and putting Pennsylvania at the forefront of American energy independence. … Corbett’s administration has put a big emphasis on fracking natural gas in the Keystone State. Corbett said that over his tenure the state has gone from importing 75 percent of its natural gas to exporting more than the state uses. (NBC-10, 9/9/14)

SHALE DEVELOPMENT CREATES ECONOMIC GROWTH

  • Northern Pa. Experiences “Economic Growth” Thanks to Marcellus Shale: Tioga County and neighboring Bradford and Susquehanna counties have been a large focus for the Marcellus Shale industry for a number of years. … Julie VanNess, Executive Director of the Wellsboro Area Chamber of Commerce, described business growth and expansion as “steady” … Businesses directly impacted by the gas industry, such as Tioga Central Railroad and Wellsboro Johnston Airport, have seen and continue to see growth and expansion.” … The local hospital, Soldiers and Sailors Memorial Hospital, added a new emergency room to meet the growing needs of the area.” The Macellus drilling boom has brought a few new hotels and restaurants to Tioga County in the last few years, bringing additional jobs to the area. “Many of the existing businesses took advantage of the boom by adjusting to the needs of the industry,” VanNess said. (Pa. Central Business, 9/5/14)
  • Momentum is Building Nationally In The Manufacturing Sector: A series of recent economic indicators, including factory hiring, shows momentum building nationally in the manufacturing sector. … Vallourec recently completed a million-square-foot plant in Youngstown to make steel pipes for the energy industry, the first mill of its kind to open here in 50 years. The facility, which cost $1.1 billion to build, will be joined next year by a smaller $80 million Vallourec plant making pipe connectors. … Ohio’s unemployment rate in July was 5.7 percent, well below the national average of 6.1 percent. That’s a sharp reversal of the situation four years ago, when unemployment in Ohio hit 10.6 percent … A 2013 McKinsey study…estimated that production of shale gas and so-called tight oil from shale could help create up to 1.7 million jobs nationally. … Since hitting bottom in early 2010, manufacturers have added nearly 700,000 jobs. (New York Times, 9/8/14)
  • Local Businesses Supported by Oil & Gas Industry are “Thriving”: They’re vendors of goods and services to the country’s oil and gas industry, and according to the latest survey from the American Petroleum Institute, they’re thriving in the current U.S. energy boom. … In Pennsylvania, which is in the middle of a natural gas boom from Marcellus Shale, API, which broke out the number of vendors surveyed by states’ congressional districts, identified a total of 1,347 businesses related to the oil and gas industry, with 196 in the Pittsburgh area. … According to API, the oil and gas industry contributes $34.7 billion to the state’s economy, with 339,000 jobs supported by the industry. The jobs are good-paying ones as well. The institute noted that while the average annual salary in Pennsylvania is $48,785, the average oil and gas industry salary here is $78,898. … “Oil and natural gas companies are only one part of a much larger economic success story that is creating job growth up and down the supply chain …From the folks who make work gloves to environmental consultants, these businesses represent just a small cross-section of the opportunities created by America’s energy revolution.” (Observer Reporter, 9/9/14)
  • API Survey: Energy Development Generated Nearly 8% of U.S. Economic Activity: The effects of the U.S. oil and gas renaissance are being felt far and wide, with a broad range of nearly 30,000 companies benefiting from the energy boom, a report issued by the American Petroleum Institute said on Tuesday. Over the last three years, crude and natural gas has supported almost 10 million full and part-time jobs, said the API, which is a trade organization for the energy industry. … crude and natural gas have generated nearly 8 percent of U.S. economic activity. The report said that the boom benefits firms including real estate companies, uniform makers, environmental conservation products and laboratories. … The country’s global clout as an energy producer “is growing, and businesses are growing with it,” Milito said. Although only 14 states are classified as top energy producers, the survey said the effects are being felt across most of the 50 states. (CNBC, 9/9/14)
  • MSC Releases Video Highlighting Economic Impact of Pa.’s Impact Fee Tax: The Marcellus Shale Coalition has released a two-minute video that calls attention to the $630 million producers have paid in impact fees over the past three years. The video, which is posted on YouTube, points out that impact fee revenue has helped fund a variety of public projects throughout the state. …David Spigelmyer, the coalition’s president, said the impact fee is making “important community-focused investments possible.” “The safe development of job-creating shale gas continues to deliver positive benefits for the entire commonwealth. Small business is growing, our region’s manufacturing base is being revitalized, consumers are seeing more stable energy costs, and Pennsylvania’s workforce – especially organized labor – is realizing huge opportunities,” he said. (Pittsburgh Business Times, 9/8/14)
  • MSC Member Sunnyside Supply Grows with Shale Industry: Paul and Nanette Battista were struggling to find the right business model. … In 2004, inspiration struck in the form of a Marcellus Shale gas well. That well, drilled three miles from their Mount Pleasant home, helped turn the Battistas’ business -— originally named for the solar concept -— into a place to buy items such as fire-resistant clothing and metatarsal boots meant to help those in the oil and gas industry stay safe while doing their jobs. … Getting into oil and gas was a good move for the Battistas, who watched their business grow from $1 million to $6 million in sales from 2008 to 2013. … Sunnyside enlisted the help of Gibsonia concrete tool company Bon Tool to manufacture products geared toward the oil and gas industry. … Sunnyside has worked with companies such as Range Resources, MarkWest and Consol Energy. This year, it began working with a rig company selling such items as soap to clean the rigs, antifreeze for pipes, and wire and mesh rope for lifting purposes. (Pittsburgh Post-Gazette, 9/8/14)

Read the fall edition of Marcellus Quarterly Magazine HERE and view our latest educational video on the Pennsylvania’s natural gas impact fee HERE.