Pennsylvania's Natural Gas Industry & The Jobs It Creates

Transcription

1 Pennsylvania's Natural Gas Industry & The Jobs It Creates PAPEN May 19, 2014 December 22, 2011

2 Range Resources Natural gas production company Pioneered the Marcellus Shale in 2004 More than $4 billion invested in PA Employ nearly 500 Pennsylvanians, thousands through contractors Corporate HQ in Ft. Worth, TX Regional Headquarters in Canonsburg Operations in Texas, Oklahoma, Virginia 2

3 What is the Marcellus Shale? Large, marine shale formation Found 6,000-7,000 feet deep Natural gas and hydrocarbons are trapped inside the solid shale Other shales above and below the Marcellus Combines with Utica/Devonian to be among world s largest reserves 3 3

4 American Shale Plays 4

5 Marcellus Shale Footprint Marcellus Shale spans nearly 30 million acres Close to some of the largest energy consuming markets in the U.S. Export terminals along the East Coast Doesn t all produce the same wet/dry gas 5

6 Marcellus Shale Activity in PA 6

7 Marcellus Shale Development State-of-the-art Technology - Proven Approach - Industry Expertise Preparation Drilling Completion Production 7

8 Preparation Geoscientists determine drilling locations 3-D seismic measurements Surface, sub-surface maps State-of-the-art Technology 8

9 Leases are Acquired Oil & gas owners (frequently the surface owner) are offered compensation for leasing rights to their property In addition to initial lease payment, oil and gas owners also receive royalties on natural gas sold from the wells in their unit 9

10 Site Preparation 10

11 Drilling State-of-the-art technology Multiple wells, single site Footprint is 4-6 acres Each well takes 3-4 weeks to drill on average 11

12 Drilling Pad 12

13 Horizontal Drilling Total surface disturbance during drilling, including access road, drilling pad and required pipeline infrastructure: Horizontal (yellow) develop 640 acres per pad with less than 1% surface disturbance 13

14 Well Casing A well is comprised of 5 strings of casing that gradually get smaller, like a telescope. Each string is fully cemented to the surface and allowed to set for at least 8 hours. Over 3 million pounds of U.S. steel and cement go into each well. 14

15 Horizontal Technology Drill 5,000-8,000 deep and up to 9,000 + horizontally As deep as 17 Statues of Liberty Roughly 2 miles of drilling, with spot-on accuracy Reduce surface disturbance, with less environmental impact 15

16 Drilling Horizontally 16

17 Drill Bits Used for specific types of drilling Can vary depending on rock formation 17

18 Completions Hydraulic fracture stimulation or fracing is: the injection of fresh water and sand at high pressure, into the formation fracturing the rock and safely releasing the gas. Each well is completed in stages starting at the toe of the wellbore and working out towards the heel. A typical Marcellus frac job requires 4-5 million gallons of water per well, with operations lasting about 2-3 days per well. 18

19 Fracturing Fluid Friction Reducer Bacteria Nutritional Supplement Water 95% Naturally Occurring Bacteria Culture Scale Inhibitor HCL Acid 19

20 Completions 20

21 Completions Over 6,000 feet below our feet Sand props open paper-thin fractures Monitored and controlled from surface 21

22 Command Center 22

23 Production Small footprint wellhead, separators, production tanks Checked daily by lease operator Decades of production expected 23

24 Production 24

25 Production 25

26 Activity Inconveniences Dusty 24-hour operations Truck traffic Noise and lights Some road damages Temporary 26

27 Industry Segments Upstream getting the gas out of the ground Mapping, Leasing, Pad Construction Drilling Well Completion Midstream collecting and transporting Pipeline construction, collecting gas/liquids Refining products Marketing products Transporting along pipelines, rail, ship Downstream distribution for usage 27

28 So what do we do with this gas? With an abundance in natural gas, there is opportunity to increase demand with the various uses. Natural gas is used for: Electricity Generation Heating homes and schools Cooking Drying clothes Fueling vehicles Industrial power Other uses for natural gas: Manufacturing (glass, metals) Plastics Gas-to-liquids Fertilizers/Chemicals Pharmaceuticals Food Processing And many more 28

29 What Does That Mean For You? 2011: Washington County, PA ranked third highest in job growth in the United States. Federal Bureau of Labor Statistics Sept Employment Report 29

30 Are there jobs available in this industry? YES! 30

31 Are these jobs for everyone? NO! 31

32 Workforce 1 Marcellus well = 410 workers, across 150 different job types (1) Average Industry Salary $89,800 (2) ($40k higher than other industries) Advanced or Technical Degree College or Continued Education High School or No Training *7 of 10 hires are Pennsylvania natives *90% of hires are from the Marcellus region (3) (1) 2011 Pennsylvania College of Technology Study (2) PA Department of Labor and Industry (March 2014) (3) Marcellus Shale Coalition Member Survey 32

33 Job Creation at Range Geologists Clerical Staff Geophysicist Human Resources GIS/Mapping Office Management Land Leasing (title/abstract) Information Technology Data Analysts Accounting Environmental Health & Safety Purchasing Logistics Gas Marketing/Sales Engineering Communications Civil, Environmental, Petroleum, Chemical 33

34 Not Just Natural Gas Companies Hotels, restaurants, banking, real estate, all merchants Construction, heavy equipment, trucking welders, electricians Service Providers 34

35 Other Companies' Job Creation Surveyors Product Sales Supply Companies Construction Managers Title Examiners Abstractors Land Leasing Attorneys Banking Professionals Financial Advisors Royalty Services Marketing Land Brokerage Logistics Coordinators Food & Beverage Supply Hospitality Industry Tourism Travel Agencies Civil Engineers Environmental Technicians Signage Printing Market Research Analyst Gas Trading Scientists Accountants Auditors Human Resources IT Managers Computer Programming Office Managers GIS Technicians All Administrative Functions Safety Compliance Officers Commercial Real Estate Residential Real Estate Transportation Logistics Site Inspectors 35

36 Field Engineers Safety Compliance Specialists Site Foremen Directional Drillers Righands/Roughnecks Mud Loggers Frac Crews Cement Crews Wireline Operators Road Construction Workers Truck Drivers CDL Welders and Pipefitters Site Construction Workers Pipeline Inspectors Heavy Equipment Operators Mechanics Electricians Site Security Officers Lease Operators Jobs In the Field 36

37 Finding Opportunities Within the Industry Company Websites Identify which is good for you Don t apply for all postings Trade Organization, career websites, and Job Portals MSC ANGA PIOGA Network/Referrals Ask Around No Experience? Get it. Start at the bottom and grow Internships Start with service companies and learn 37

38 Pursuing a Job in Natural Gas Educate yourself on the industry: Know the companies involved Understand the differences in operations (upstream, midstream, downstream) Learn the terminology and industry job titles Identify required background/education or training necessary See where you fit in or don t fit in Understand the issues surrounding industry Find Your Niche learn the jobs and how it matches your interests Think long-term Once in a lifetime opportunity 38

39 Thank You For career opportunities, visit : Local Training Programs Western Area Career & Technology Center CCAC Marcellus Shale training Center ShaleNet WCCC More Job Information: ShaleNet.org Penn St. Marcellus Center for Outreach Job Portal 39