Posts Tagged ‘shale gas production’

Clean-burning Marcellus Shale gas production continues to strengthen region’s economy, local workforce

The responsible and environmentally sound development of clean-burning natural gas from the Marcellus Shale continues to have a potent impact on our region’s economy and its workforce. This production is creating tens of thousands of good-paying jobs, a robust and growing supply chain network, tremendous amounts of economic opportunity, while at the same time helping delivering affordable supplies of homegrown energy to consumers throughout the Rust Belt.

“The potential is limitless,” says Gov. Ed Rendell, who underscores the fact that the “economic benefit of drilling in the Northern Alleghenies is welcome news in the midst of a sluggish economy and weak job market.”

Marcellus development is helping to buck otherwise bleak regional economic and job growth trends. This development has been – and continues to be – a boon for energy consumers, the environment, local businesses, and even for Pennsylvania’s state parks. In short, clean-burning Marcellus Shale gas is providing benefits to each and every one of the 12 million folks that call Pennsylvania home, in one way or another.

Call it a “Commitment to the Community.” Marcellus Shale Coalition (MSC) president Kathryn Klaber writes this under that headline in the Lock Haven Express yesterday, highlighting the steps shale gas producers are taking each day:

We are committed to working tirelessly each day to be good stewards of our land and waterways. We are also taking steps to ensure our operations minimize disruptions and risks in and near energy-producing communities. After all, our families live in these areas too.

While modern shale gas production involves intricate engineering technologies and techniques, our industry’s top priority is far less complex: Safely developing these clean-burning, job-creating resources in a way that benefits all Pennsylvanians – and protects the environment.

And while Marcellus development is still in the early stages, many of these benefits are already being realized. According to a recent study released by researchers at Penn State, our industry will help create nearly 212,000 jobs across the Commonwealth over the next decade. Last year alone, Marcellus development was responsible for the creation of 44,000 jobs.

And like our industry’s commitment to responsible development, we take very seriously our efforts to create job opportunities for locally trained and hired workers. As Marcellus production continues to expand, these opportunities will, too. Under the headline “Making good on a promise; Halliburton plant creates jobs,” the Williamsport Sun-Gazette highlights this promise in a story this week:

When ground was broken last August on a cement mixing plant owned by Halliburton off Route 405 in Clinton Township, company officials promised they would bring jobs to this area. The company is making good on that promise, said Perry A. Harris, senior district manager for Halliburton’s northeast U.S. operations. “By year’s end we’ll have 75 to 100 (employees) and (add) another 100 to 150 next year,” Harris said during a recent tour of the plant.

Harris said the company plans to develop another 55 acres nearby that will be home to other Halliburton gas field support operations. “Between the two sites, we’ll (be hiring) 400-plus people over the next two to three years,” Harris said.

And local training programs continue to offer and plan for coursework needed to equip the area’s workforce to join our fight for a cleaner and more secure energy future:

• Educators Tailor Courses For Marcellus Drilling Job Demand. “Local educators are creating additional courses commonly required in the Marcellus Shale drilling industry as the number of rigs is expanding across the Northern Alleghenies. Central Pennsylvania Institute of Science and Technology secondary education director Todd Taylor told WJAC-TV that there’s been a recent spike in adult students completing commercial driving license classes to drive vehicles used to haul equipment and liquid in and out of drilling sites. CPI officials plan to add an emerging energy course and expect to see of local job-seekers landing drilling rig jobs. (WJAC-TV, 8/9/10)
• Johnson hopes to build gas drilling workforce. “As development of natural gas from the state’s Marcellus Shale continues, the demand has now increased for skilled welders. Johnson hopes to meet that demand through an initiative by the Center for Sustainability at Johnson College, which is dedicated to offering industry-driven curriculum related to clean, green, and sustainable energy concepts. (Times-Leader, 8/10/10)
• Roustabout training offered. “Information on free training for workers seeking jobs as roustabouts in the natural gas drilling and production industry will be available from 11 a.m. to 12:30 p.m. and 4 to 5:30 p.m. Aug. 12 in Founder’s Hall, Westmoreland County Community College near Youngwood. (Pittsburg Tribune-Review, 8/5/10)
• SCCC may train gas-drilling work force. “Now count Sullivan County Community College among the institutions planning for a future that could include natural-gas drilling. Workforce Development Dean Stephen Mitchell is researching the kinds of jobs gas drilling would make available and what skills those jobs would require. The research could underpin a new job-training curriculum at the college. (Times Herald-Record, 8/3/10)

The economic benefits associated with the responsible and environmentally sound development of the Marcellus Shale’s abundant, clean-burning natural gas reserves are overwhelming. Tens of thousands of good-paying jobs are being created across the Commonweal of Pennsylvania, where Marcellus development has been underway for several years. Hundreds of millions of dollars in tax revenues are being generated to local and state government. And Pennsylvania consumers, who continue to struggle with nearly double-digit unemployment rates, are seeing the benefits of shale gas development in the form of lower energy costs.

However, the story of the Marcellus Shale in New York State is a very different one. You see, in terms of geology, the Marcellus Shale formation is not considerably different in New York than it is in Pennsylvania. The technologies used to safely and effectively reach thesejob-creating resources are the same, too. But environmental regulators there have kept this production off-limits, denying the creation of thousands of jobs and countless other economic benefits to the region, despite the fact that the nation’s first natural gas well was completed in Fredonia, NY in 1821. At the same time, some elected state leaders are also working to implement an even more far-reaching moratorium on shale gas development.

Recognizing how critical this development is for Upstate New York’s struggling economy, and for our nation’s energy security, Marcellus Shale Coalition (MSC) president Kathryn Klaber joined a broad group of organizations this week in a letter to the State Assembly urging their support to move forward with responsible shale gas development: Here are key highlights from that letter:

We need your support for this compelling economic development opportunity, one that could benefit the State and localities significantly for years to come. We should embrace our State’s ability to bring New York-produced gas to New York customers, and by so doing create new opportunity and prosperity in our own State.

Natural gas is the cleanest fossil fuel known to man – is a solution to reducing our nation’s carbon footprint, and it will greatly improve New York’s and America’s energy independence. … And natural gas is abundant; the Marcellus Shale alone could supply natural gas to the entire United States for 20 years or more.

Based on economic projections in Pennsylvania, where the Marcellus is now being explored, Marcellus Shale development in New York will generate more than $1.4 billion in annual economic impact, based on 300 wells drilled – including more than $100 million in lease payments to landowners, $32 million in state tax revenue and tens of thousands of new jobs over time. In Broome County, a recent study that showed that 2,000 wells would annually generate more than $7.4 billion in economic activity, and nearly $400 million in wages, salaries and benefits. Also, more than $600 million in property tax income and $22 million and $20 million in state and local taxes would be generated. All of this – in just one county.

The folks in New York, especially those along the Southern Tier where Marcellus development would occur, are doing their part to educate, engage and inform the public, and key stakeholders, about the overwhelmingly positive benefits associated with shale gas production and how safe the process actually is. Last night, a group of elected officials, academics, landowners, and energy and labor representatives met in Binghamton to discuss these benefits, and to dispel the myths about the production of shale gas. The Ithaca Journal reports this today under the headline “Meeting touts benefits of tapping into Marcellus Shale”:

According to Syracuse University Earth Sciences professor Don Siegel, these concerns are more myth than reality. “This is the first environmental issue that I’ve thrown my hat into the ring on,” he said. “As a hydrogeologist, I really am almost offended by some of the opposition that’s trying to paint a picture of what groundwater resources are like that is completely wrong.”

“New investments will be made in a region where multimillion — and even multibillion — dollar investments have not been seen to this level in years,” said Broome County Executive Barbara Fiala,” and we can do all this while protecting the environment.”

“Our campus was one of the fastest-growing campuses in the United States, and virtually all of our graduates were going out into very good-paying energy industry jobs,” Drumm said. “The energy industry creates great jobs — lots of jobs — and we were heavily involved in our colleges in training for those jobs.”

Labor unions are also speaking out for responsible shale gas development in New York on behalf of their members. This from a WICZ-TV report:

Local union representatives were on hand as well, supporting the notion that jobs and money are on the coat tails of hydro-fracking.

Alex Barillo of Laborers Local 785 says he’s seen the benefits of drilling south of the border in Pennsylvania, and on the Millenium Pipeline where he says workers have seen a gross income of approximately 35 million dollars.

“That’s $35 million in gross wages that went to local workers right here so that they could have health insurance, they can have retirement, and they could pay their mortgages and so that they can do the things they do every day in their communities,” Barillo said.

We encourage you, your employees, colleagues, businesses associates, friends and family to visit Marcelluscoalition.org/get-involved, and join this fight for a more prosperous economy that leverages these resources into permanent, family-supporting jobs and stable supplies of domestic energy. Becoming a “Friend of Marcellus” will help ensure that you are informed and educated about the opportunities and critical issues surrounding this development, especially as it relates to moving forward with Marcellus development in New York.

Copyright: Marcelluscoalition.org

Group urges commonsense reforms, dialogue aimed at safely expanding natural gas development, jobs in Pa.

Canonsburg, Pa. – The Pennsylvania state House of Representatives is currently considering what would be the nation’s most onerous taxes on the environmentally responsible development of clean-burning, job-creating natural gas from the Commonwealth’s Marcellus Shale formation. Kathryn Klaber, president and executive director of the Marcellus Shale Coalition (MSC), issued this statement:

“Pennsylvanians continue to face troubling economic times, with nearly one out of every ten citizens in the Commonwealth out of work today.

“Despite this difficult climate, the environmentally-safe development of the Marcellus Shale’s natural gas resources continues to create tens of thousands of good-paying jobs at a time when they’re most needed. This responsible development is not only generating hundreds of millions of dollars in tax revenue for state and local governments, but it’s also delivering clean-burning, homegrown energy supplies to struggling families in the form of affordable natural gas for home and water heaters, as well electricity.

“We will continue to work closely with the General Assembly, the governor and his administration, as well as county and local officials, to craft commonsense solutions – especially modernizing our outdated regulatory framework – that encourage competitiveness, expanded job creation and energy security.

“Unfortunately, this enormous tax hike and misguided call for blanket moratoriums on shale gas production not only put Pennsylvania on a path to become one of the least competitive energy-producing states in the country but also threatens critical capital investments, which are essential for continued job growth. Instituting new taxes and an unnecessary moratorium will only drive away jobs – what a missed opportunity that would be.”

Copyright: Marcelluscoalition.org

Natural gas captured from organic shale formations is not new to the oil and gas industry; shale gas has been produced since the early 1800s (DOE, 2009).  Most shale gas formations have historically been deemed economically impractical to drill due to the available technology and relative abundance of domestic conventional natural gas sources.  However, recent technological advances in horizontal drilling and hydraulic fracturing along with increasing demand for natural gas and recent price trends for natural gas, have allowed previously inaccessible reserves to become technologically feasible and economically efficient to recover (DOE, 2009).

The Annual Energy Outlook for 2009, recently released by the United States’ Energy Information Administration, projects an increase of 0.5% total primary energy consumption annually through 2030 (EIA, 2009).  The majority of this demand increase will come from the residential sector’s demand for additional electricity (EIA, 2009).  Currently, coal-fired electricity generation dominates the electricity generation sector at approximately 49% of total U.S. domestic generation capacity (EIA, 2009).  However, due to emerging concerns and public policy developments regarding greenhouse gases and renewable portfolio standards for a sustainable energy supply, lower carbon energy sources needed for electricity generation are expected to gain marketplace demand (EIA, 2009).  Unfortunately, conversion from a fossil fuel-dependent energy economy to a low-carbon energy economy will take time and significant capital investment for infrastructure development (DOE, 2009).  A recent Wall Street Journal article cites Carl Pope, executive director of the Sierra Club as viewing natural gas as a “bridge fuel” from carbon-intensive fossil fuels, such as coal and petroleum, to cleaner future fuel sources (Casselman, 2009).

In order to meet the expected increased demand for natural gas without increasing dependence on foreign imports, development of domestic unconventional natural gas sources will need to grow rapidly.  Production from unconventional natural gas sources, namely organic shales, tight sand formations, and coal-bed methane, currently account for approximately 50% of the total domestic natural gas production (DOE, 2009), this total production from unconventional resources was estimated at 8.9 trillion cubic feet (Tcf) per year in 2007 (ALL, 2008c).  Of the 8.9 Tcf of unconventional natural gas produced in the United States in 2007, 1.2 Tcf was from shale formations; however, shale gas production is expected to grow to 4.2 Tcf by 2030, accounting for an estimated 18% of the total U.S. gas production in 2030.  Unconventional sources combined are predicted to grow to nearly 56% of total U.S. domestic natural gas production (EIA, 2009).  To date, four evolving shale gas plays (Haynesville, Marcellus, Fayetteville and Woodford) are estimated to have over 550 Tcf of total recoverable gas resources, these formatiosn are expected to be capable of providing sustainable production of 2-4 Tcf of natural gas annually for decades (DOE, 2009).  Of these four, the Haynesville Shale and Marcellus Shale may have the most significant additions to domestic reserves of natural gas in recent decades.

Copyright: GoMarcellusshale.com