Funding the Future. Cabot Oil & Gas Corporation s $2.5 Million Gift. History of School of PNG PAGE 4. Student Spotlight PAGE 8. Donor Support PAGE 9
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1 VOLUME ONE FALL 2014 Funding the Future Cabot Oil & Gas Corporation s $2.5 Million Gift Outdoor Lab Onsite, New Milford History of School of PNG PAGE 4 Endowment Gift Received PAGE 6 Student Spotlight PAGE 8 Donor Support PAGE 9
2 Empowering Education. Enriching Lives. Lackawanna College School of Petroleum & Natural Gas is focused on its vision of becoming a nationally-recognized, first in class accredited degree program in the field of petroleum and natural gas technology. Contact us for more information! 2390 State Route 848 New Milford, PA (570) Message from Executive Director With this magazine, the School of Petroleum & Natural Gas begins to reach out to our nation and beyond. For five years, we ve been working here in northeastern Pennsylvania to build a world-class accredited program, and the success of our graduates and the support we ve gained from the oil and gas industry signals we re achieving our goal. About 90 percent of our graduates in good standing who ve looked for jobs after graduation have found employment and 70 percent have been hired by major exploration and production companies. Those same companies hire our students as interns and come back year after year to interview and recruit. We ve attracted as instructors for our technical courses engineers with multiple degrees and many years of real-world experience, and our expectation is that we ll including student dormitories. soon have additional buildings on campus, All this has led companies like Williams, Southwest Energy, Talisman and Exterran to make major gifts for scholarships to equip our labs, and to lead the way has been Cabot Oil & Gas Corporation, which has given $1 million to endow the school and $1.5 million more for state-of-the-art equipment, staff and faculty development and student internships. Rick Marquardt School of Petroleum & Natural Gas, Lackawanna College Rick Marquardt Executive Director School of Petroleum & Natural Gas, Lackawanna College About this Magazine Funding the Future Cabot Oil & Gas Corporation s $2.5 Million Gift History of School of PNG PAGE 4 Endowment Gift Received PAGE 6 Student Spotlight PAGE 8 Welcome to the Lackawanna College School of Petroleum & Natural Gas magazine. In this publication, you will learn more about the school and our accredited degree programs. You will come to know the people that make up one of the finest faculties in the industry. You will marvel at the generosity of our supporters. And most importantly, you will discover for yourself some of the success stories that our students and graduates have realized on their journey to achieving their dreams of working in the fast growing petroleum and natural gas industry. Enjoy learning more! volume one VOLUME FAll 2014 ONE FALL 2014 Donor Support PAGE 9 2 School of PNG 3
3 History Lackawanna College School of Petroleum & Natural Gas A Look Back and Vision for the Future Fulfilling its 120 year old historical mission, early in the development of the Marcellus Shale resource play in Pennsylvania, Lackawanna College strategically identified the technical human resource needs of the oil and natural gas industry. It began to position the college as a leader in educating prospective workers based on those needs. Evaluation determined that qualified petroleum & natural gas field technologists and compression technicians in Eastern Pennsylvania were required as a minimum due to the lack of any existing oil and gas operations in the region. Core employer needs initially focused on the position of Petroleum Technologist and Compression and Mid-stream Technician. Lackawanna College executives and staff studied and worked to design this specialized education. They established at first a successful accredited petroleum & natural gas technology degree and later the natural gas compression technology degree that equates to colleges in established and gas producing states like Texas, Oklahoma and Wyoming. Although the industry had typically financed and sponsored some oil and gas technology programs to meet industry needs out in the western part of the United States, Lackawanna College, as a private institution, quickly forged ahead to physically and academically build a School of Petroleum & Natural Gas as an accredited technical degree program from scratch. The College is highly focused on oil and gas industry needs. It was reviewed and commented on by several Exploration & Production [E&P] companies throughout the state. The feedback received was incorporated in the initial program curriculum with a commitment from industry leaders to periodically work with Lackawanna College to review and revise the program as needs change and the industry develops. Today over 70% of Lackawanna College School of Petroleum & Natural Gas graduates are hired by major First- In-Class E&P, Midstream and Pipeline companies that return year after year to interview and hire the school s students. Total School of Petroleum & Natural Gas job placement is 90%. Based on the feedback obtained from early conversations with industry, the College determined that companies needed technicians in the field who have garnered practical information from industry experienced professionals in addition to traditional academic subject matter. Using that informed thinking, staff developed courses that include on-site equipment lab experience in the field. Coupled with academic, fundamental, general and petroleum engineering materials, subject matter courses were reviewed and implemented. Lackawanna College School of Petroleum & Natural Gas has aggressively sought and hired faculty from industry experienced professionals, rather than exclusively from academia. To ensure state-of-the art educational excellence, the assessment of course offering is continuous and ongoing. Lackawanna College students currently earn Associates in Science Degrees in Petroleum & Natural Gas Technology (PNGT), or Natural Gas Compression Technology (NGCT). A PNG Measurement and a PNG Business degree were developed and began this fall of The current technical program staff includes an Economic Geologist, Mechanical and Metallurgical Engineer, Petroleum Engineer, Environmental Engineer and Electrical Engineer with over 100 years of combined industry experience from which to draw. The core course staff have multiple and higher level degrees. Lackawanna College made a significant financial commitment to the oil and gas industry by investing over $1,00,000 to build a new dedicated campus in Susquehanna County, PA for The School of Petroleum & Natural Gas. This location was selected in Pennsylvania and New York Marcellus Shale area so that graduates will be well positioned to the jobs in the Appalachian Basin and well beyond. In 2014, Cabot Oil & Gas Corporation announced the creation of a $2.5 million gift and endowment of the Lackawanna College School of Petroleum & Natural Gas to help educate and encourage future generations to work in the natural gas and oil production industry. The funds from the Cabot gift and endowment are directed to provide continuing support for student scholarships and help meet the long-term needs of the school. It also includes state-of-the-art equipment, labs, training, staff and faculty development, and student interactive field experiences and internships. The actual location of the Lackawanna College School of Petroleum & Natural Gas makes it a good neighbor to many E&P, Mid-stream and Service companies including Anadarko, Baker, Cabot Oil & Gas Corporation, Chesapeake Energy, Cleveland Bros., EXCO, Exterran, Halliburton, J-W Operating, Noble Energy, PDC, Southwestern Energy, Talisman, Weatherford, Williams, WPX and others. The school works with each in hiring interns and to gain access to drilling sites, producing well sites, compression facilities, etc. Based on this approach of partnering with industry and adapting to the needs of the developing resource plays across the country including the Marcellus and Utica Shale, Lackawanna College is continually seeking curriculum improvement and expansion to best satisfy the needs of students, customers, and companies hiring our graduates. 4 School of PNG 5
4 $ 2.5 Million Endowment Gift The Marcellus Shale is providing new opportunities for businesses and individuals to prosper. GEORGE STARK Director of External Affairs Cabot Oil & Gas Corporation School of Petroleum & Natural Gas Receives Generous Donation from Cabot Oil & Gas Corporation In the spring of 2014, Cabot Oil & Gas Corporation and Lackawanna College announced a major partnership that would come to be known as not just a game changer, but a life changer according to Lackawanna College President Mark Volk. When Cabot announced that it was making a gift of $2.5 million to the school, it marked the largest private donation in the history of the 120 year-old college. The Lackawanna College School of Petroleum & Natural Gas will directly benefit from the gift and will help train future generations to work in the natural gas and petroleum industry in Northeastern Pennsylvania and open opportunities around the world. The funds from Cabot s gift will be directed toward the creation of a $1 million endowment to provide continuing support for student scholarships and help meet the long-term needs of the school. The additional dollars will be used for state-of-the-art equipment, training, staff and faculty development, and student interactive experiences and internships. Phil Stalnaker, Vice President & North Regional Manager at Cabot Oil & Gas Corporation, felt that Cabot s partnership with Lackawanna College would provide students with a world-class education and the ability to become employed in the petroleum and gas industry in Northeastern Pennsylvania or elsewhere across the country if they should so choose. The Cabot gift will expand the opportunities for residents, business and the surrounding area to become a part of the expanding natural gas industry in the region. This is a great investment. Cabot will be here for decades, Stalnaker stated. We are part of the community. The nice thing about hiring locals is they re already part of the community. The School of Petroleum & Natural Gas has grown to include 140 students since it was founded in Richard Marquardt, the school s Executive Director, stated that the school now offers four majors: petroleum and natural gas technology, measurement, business administration and natural gas compression technology. The School of Petroleum & Natural Gas is located in New Milford, PA where students get hands-on experience with the same equipment used in the industry. Its instructors are mostly degreed engineers including petroleum, chemical and mechanical, many with multiple degrees, Mr. Marquardt said. Cabot is a natural gas industry leader producing approximately 1.5 billion cubic feet of natural gas each day from the Marcellus Shale. Cabot recognizes the tremendous impact natural gas development is having on the region and all across the United States. For the past six years, Cabot has developed this energy resource safely and efficiently, investing over $3 billion in Susquehanna County and in surrounding communities. The Marcellus Shale is providing new opportunities for businesses and individuals to prosper, stated George Stark, Director of External Affairs at Cabot. Education is the foundation for this new growth and expansion. Photos from left to right: 1. Jill A. Murray, PhD, Executive Vice President and Chief Academic Officer of Lackawanna College welcomes the crowd to the event where the $2.5 million gift was announced. 2. Lackawanna College President, Mark Volk, on the right, and Richard Marquardt, Executive Director of the School of Petroleum & Natural Gas, on the left, express appreciation to Phil Stalnaker, Vice President & North Regional Manager at Cabot Oil & Gas Corporation, center. 3. David J. Spigelmyer, President of the Marcellus Shale Coalition addresses the guests at the community luncheon celebrating the largest private gift given to Lackawanna College in the school s over-100 year history. 4. PA State Senator John Blake, left, is greeted by Lackawanna College Board of Trustee members, Thomas P. Cummings, Jr., Esq., center, and Dominick DeNaples, Chairman Emeritus, right. 6 School of PNG 7
5 Spotlight I realized that the natural gas business would fill the bill and that the place to get the training was here at the School of Petroleum & Natural Gas. 8 School of PNG Student Meet Ken Walter Like many American workers, Ken Walter got a notice not long ago that the job he d had for nearly 28 years was about to disappear. Losing my job was pretty traumatic, the Dunmore resident recalls. Where was I going to go? That was last summer, and he soon found an answer. He had been working at the Throop warehouse of Harper Collins Publishers, and the company said foreign competition was partly to blame for their closing the place. That made Ken eligible for federal retraining funds. I had the chance to get free training to go into a field that s booming and needed. The government wants that. I realized that the natural gas business would fill the bill and that the place to get the training was here at the School of Petroleum & Natural Gas. He threw himself into the work and, by the end of his first year, had earned a grade-point ratio of 3.97 and been elected president of the school s chapter of the Society of Petroleum Engineers. Still, Walter is quick to say he s not some kind of hero. Times change, and all I ve been doing is trying to change with them. Anyone can do what I ve done if they put their mind to it and are willing to work hard. Donor Profile Baker Hughes Making an Impact Bill desrosiers, left, Coordinator of External Affairs at Cabot Oil & Gas Corporation inspects the equipment donation from Baker Hughes with the school Executive Director Rick Marquardt second from left, Michael Moreland, Account Manager, Completion Tools at Baker Hughes, second from right and George Pitely, School of Petroleum & Natural Gas faculty member. Being part of the community is very important to Baker Hughes, says Karen Hubbard, Account Manager, Baker Hughes, seen here on the left, with Susan Johnson, Regional Marketing Manager, Baker Hughes. If a picture is worth a thousand words, being someplace where you can touch and work with what s shown in the picture has to be worth a whole lot more. That s the thinking behind the labs at the School of Petroleum & Natural Gas, which are full of the actual equipment in everyday use in the Marcellus Shale region. The labs have that equipment because companies working in the region, the college s neighbors really, have generously donated it. With three facilities within an hour s drive of the school, Baker Hughes Inc. is one of those generous neighbors. The major international gas and oilfield services company has given the school what s called a down-hole mud motor a 10-foot-long, hydraulically powered, stainless-steel drill and a pair of the plugs used in the hydraulic fracturing procedure that stimulates a well to produce more gas or oil. Being part of the community where we re working, being close to our operations, is very important to Baker Hughes, says Karen Hubbard, an account coordinator in the firm s wireline-services department. She works out of Mountaintop, a few miles south of Wilkes- Barre, where Baker Hughes stocks drill bits and the tools needed to prepare new wells for production to complete them, as the industry puts it. The company also has a shop there for its wireline services, which involves using cables to lower sensing devices and tools into a well bore. We have hundreds of facilities in the United States alone, Hubbard says. And you ll find they re located where we re working. It can make a big difference to a customer whether they re calling someone who s one hour away or four hours away. The gas fields are going 24 hours a day, seven days a week. Often, they can t really wait four hours for something, so Mountaintop is a good location for us to serve our customers and also be part of the community. Beyond serving the customer, being a regional resource for the oil and natural gas industry is Baker Hughes s aim, she says. We want to be able to provide assistance and educational possibilities. I was an elementary-education teacher before I got into this business, and I still have at heart the idea that we should teach the next generation, and it s in our best interest to do that. The people who are coming up will see the investment we have in them and, in turn, will come to us when they need help. Mike Moreland, who works in the tool department at Mountaintop, echoes Hubbard s sentiments. We want to supply the equipment and the information to give the students here a firsthand experience of what we do and how we function as a company, he says. And it goes far beyond just learning about mud motors and frac plugs: Baker Hughes is huge on health, safety and the environment. We want people to go home the way they came to work. Our culture of safety is something I hope I can get across to the students. 9
6 Faculty Profile Meet Ray McDonald Each graduate of this school who gets a $40,000 to $60,000-a-year job in the natural gas industry helps lift the entire area. RAY McDONALD Like a lot of his students, Ray McDonald is working on a second career. He heads up the compression technology program at the School of Petroleum & Natural Gas and, four years ago, was thinking of retiring after a long and successful career as a mechanical engineer and consultant. Then he heard about an opening at the school for someone with his kind of credentials, and he found the idea of teaching and helping young people irresistible. This has been a depressed area for a long time, says McDonald, who has lived up the road from the school for the last 14 years. What did people have around here 10 School of PNG Director of Compression Technology at LC PNG before natural gas arrived? The traditional wood and stone industries were down to a minimum; many of the dairy farms had gone under, but now natural gas has allowed everyone to have a glimmer of hope. Each graduate of this school who gets a $40,000 to $60,000-a-year job in the natural gas industry helps lift the entire area, he says. And most of the students here are fairly aggressive and want to do well. And that s not to mention that the teaching itself is both a pleasure and a challenge for me. Hands On Learning at its Best School of Petroleum & Natural Gas provides students with hands on learning with real equipment a sand separator, a dehydration unit and more. Cabot, Williams and several of their suppliers donated the equipment, and we put it all together. Linde, which began by building sewer and water lines in the mid 1960s, contributed the labor and equipment to install this so-called production line and was happy to do it. The more students know, the more valuable they are to themselves and to us, he says. There s a big difference between a common laborer and someone who comes out of a school like this. Eighty percent of what s done at gas wells is new to this region, and people need a place to learn about it. To most people, a laboratory is a quiet sort of room with work tables, sinks and lots of glassware. But at the School of Petroleum & Natural Gas, one of the most important labs isn t even indoors. It s the school s open-air field lab, where students get to see and work with all the equipment they d find at a Marcellus gas well. It s a workable mockup of the typical well pad, says Tony Domiano, a superintendent with the Pittston-based Linde Corp., which has built such pads since the natural gas boom began in the region. We ve got a wellhead, 11
7 2390 State Route 848 New Milford, PA Industry Trends Drilling Down n The U.S. has surpassed Russia as the world s largest producer of oil and natural gas. (USA Today) n The shale industry has increased oil production in the U.S. by approximately 64%. (Businessweek.com) The oil and gas industry now supports almost 10 million workers nationwide. n These jobs account for approximately $597.6 billion in wages, salaries, benefits and proprietors income, and added roughly $1.2 trillion to the U.S. economy. (drillinginfo.com) n In 2013, the average earnings for an oil and gas professional reached $92,160 in the U.S. - more than double the national average salary. (drillinginfo.com) n In Pennsylvania, the average wage in the Marcellus Shale core industries was $90,003. (PA Dept. of Labor & Industry) n Pennsylvania new hires in the core industries were 17.1% higher in 2014 than just three years earlier. (PA Dept. of Labor & Industry) n $2.1 billion of tax revenue has been generated in PA by responsible shale development. (PA Dept. of Revenue)
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