Connecting Local Businesses to the Shale Gas Supply Chain, Penn State Marcellus Center (MCOR) & Shale Training and Education Center (ShaleTEC) Photo Courtesy Penn State Marcellus Center Opportunity & Perspective Photo Courtesy Penn State Marcellus Center 1
Fitting the Oil/Gas Patch Know the high priority occupations (HPO s) Be ready Strong work ethic Problem solver Basic knowledge of natural gas production Pass a drug test Network (high contact) Patience and perseverance (polite persistence) Get ready Have a plan Take your safety training The Timeline Source: Pennsylvania Marcellus Shale Workforce Needs Assessment http://www.msetc.org/
1 1 8 Workforce & Economic Development Historical Pennsylvania July Rig Count 83 116 78 68 Current Rig Count November 9, 1 6 3 17 17 11 5 6 5 Sources: Baker-Hughes Investor Relations (November 9, 1) 1 Rig Count by County Pennsylvania (68 Rigs) 1 8 6 3
8 Rig Count by County Ohio (5 Rigs) 7 6 5 3 1 7 Rig Count by County West Virginia (7 Rigs) 6 5 3 1 Harrison Doddridge Wetzel Marshall Brooke Gilmer Ohio
Ohio Rig Locations January 13, 1 13 Rigs Source: Rig Data 3.5 3.5 1.5 1.5 9 Ohio Rig Locations November 9, 1 8 31 Rigs Source: Rig Data 7 6 5 3 1 5
5 West Virginia Rig Locations January 13, 1 31 Rigs Source: Rig Data.5 3.5 3.5 1.5 1.5 6 West Virginia Rig Locations November 9, 1 6 Rigs 5 Source: Rig Data 3 1 6
Bradford, PA Lycoming, PA Susquehanna, PA Tioga, PA Washington, PA Greene, PA Clearfield, PA Wyoming, PA Westmoreland, PA Fayette, PA Butler, PA Clinton, PA Armstrong, PA Beaver, PA Cameron, PA Indiana, PA Jefferson, PA Mckean, PA Allegheny, PA Clarion, PA Crawford, PA Erie, PA Mercer, PA Potter, PA Sullivan, PA Cambria, PA Centre, PA Elk, PA Forest, PA Huntingdon Lawrence, PA Somerset, PA Venango, PA Warren, PA Bradford, PA Lycoming, PA Susquehanna, PA Tioga, PA Washington, PA Greene, PA Clearfield, PA Wyoming, PA Westmoreland, PA Fayette, PA Butler, PA Clinton, PA Armstrong, PA Beaver, PA Cameron, PA Indiana, PA Jefferson, PA Mckean, PA Allegheny, PA Clarion, PA Crawford, PA Erie, PA Mercer, PA Potter, PA Sullivan, PA Cambria, PA Centre, PA Elk, PA Forest, PA Huntingdon Lawrence, PA Somerset, PA Venango, PA Warren, PA 5 Pennsylvania Rig Locations January 13, 1 1 Rigs Source: Rig Data 15 1 5 1 1 1 Pennsylvania Rig Locations November 9, 1 8 Rigs Source: Rig Data 8 6 7
Workforce & Economic Development 1 1 1 More wells drilled per year No change in wells drilled per year Less wells drilled per year 8 6 Size of workforce will depend on number of wells drilled each year. 9 1 11 1 13 1 15 16 17 18 19 Year 8
Nov-1 Dec-1 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-1 Feb-1 Mar-1 Apr-1 May-1 Jun-1 Jul-1 Aug-1 Sep-1 Oct-1 Nov-1 $1. $1. $8. Natural Gas Price (July) -1 July Monthly Average Wellhead Price: $.9 8 $1.79 $13.58 - daily high November 18, 1 $3.8 $6. $. $. $. Sources: Energy Information Administration 3 5 6 7 8 9 1 11 1 Today,5, Working Natural Gas in Underground Storage 3,5 3,,5, 1,5 1, 5 Source: Energy Information Administration (November 1, 1) 5-Year Maxium 5-Year Minimum Storage Inventory: 9
Development Patterns E&P vs. subcontractor Hot spot vs. overall Development type Appalachian Basin Regional offices/centers Field offices Field location Pace Price Inventory Production Utilization Federal/State Policy Photo Courtesy Penn State Marcellus Center Source: PA Marcellus Shale Workforce Needs Assessment http://www.msetc.org/ 1
Employment (9Q1 to 1Q1) Core industries up 19,1 (+177.5%). Ancillary industries up 13,7 (+7.%). All industries up 3,3 (+.8%). 1Q1 Marcellus Shale related industries total employment was 3,. Marcellus Shale Fast Facts, October, 1 edition* Center for Workforce Information & Analysis (CWIA) Establishments (9Q1 to 1Q1) 1,165 establishments added 8 core, 757 ancillary Core 65.% growth Ancillary 6.% growth All PA Industries.% growth 13,65 Shale establishments in 1Q1 Marcellus Shale Fast Facts, October, 1 edition* Center for Workforce Information & Analysis (CWIA) 11
PA Wages (11Q through 1Q1) Average across all industries $7,861 Average in core industries $83,65 Average for ancillary industries $6,799 Marcellus Shale Fast Facts, October, 1 edition* Center for Workforce Information & Analysis (CWIA) Ancillary Industries 9Q1 1Q11 Actual Change % Change Est. Emp. Est. Emp. Est. Emp. Est. Emp. Specialized Freight Trucking 1, 9,336 1,86 1,983 3,68 3% 39% General Freight Trucking 1,6 8,85 1,9 1,513 3,8 17% 3% Testing Laboratories 39 7, 3 8,77 9 1,55 % 1% Highway, Street, & Bridge Const. 53 17,591 535 19,9 3 1,99 1% 9% Engineering Services,6 1,691,588,999 16 1,38 5% 3% Const., Mine, & Forest Equip Rent 115, 16 3,38 9 1,18 3% 5% Geophysical Survey & Map Srvs 55 37 59 3 16 7% 5% Oil & Gas Machine & Equip Mfg 8 338 1 7 89 5% 6% Marcellus Shale Fast Facts, October, 1 edition* Center for Workforce Information & Analysis (CWIA) 1
Biggest Challenge Finding Workers % 1% % 3% % 5% 6% 7% 8% 5% Willing to work hours Good work history Clean criminal background Free from drugs % 5% 36% Experience needed 71% Technical skill needed 63% Proper degree/certification Proper interpersonal skills % 5% Source: Pennsylvania Marcellus Shale Workforce Needs Assessment http://www.msetc.org/ $1,, Business Impacts Hotel Tax $971,583 $9, $8, $7, $67,83 $6, $5, $, $3, $, $11,51 $69,81 $,5 171,93 56,378 $55,7 $5,3 $35,11 $, 193,88 8 9 1 11 $1, $- Bradford Lycoming Tioga 13
Business Impacts - Rail 9, 8,5 8, 7,5 7, 6, 5,,767 5,7 5,73 8 9, 3,, 1,,,71 8 1,6 11 81,13 1 11 - Bradford Lycoming Tioga Utilization Transportation Compressed Natural Gas (CNG) Liquefied Natural Gas (LNG) Gas to Liquids (GTL) Co-fueling Diesel/Natural Gas Electric/Natural Gas Ethane Cracker Manufacturing Strong energy users Paper Steel Plastics Glass Agriculture Power Generation Combined Heat and Power Coal Conversion Peaking Power 1
Fitting the Oil/Gas Patch Know the high priority occupations (HPO s) Be ready Strong work ethic Problem solver Basic knowledge of natural gas production Pass a drug test Network (high contact) Patience and perseverance (polite persistence) Get ready Have a plan Take your safety training 15
Questions Contact: Thank You Web Resources: www. www.msetc.org www.naturalgas.psu.edu www. www.msetc.org www.naturalgas.psu.edu Photo Courtesy Penn State Marcellus Center 16