New Report Sponsored by American Clean Skies Foundation Spotlights Jobs from Natural Gas

A new study by ICF International for the American Clean Skies Foundation (ACSF) states that the  revolutionary advances in oil and natural gas extraction technologies over the last five years have had an equally dramatic effect on state economies.  Greg Staple, CEO and President of ACSF was scheduled to serve as a panelist on our panel:  Hydraulic Fracturing:  Risks and Opportunities which we had to cancel due to the weather impact of Hurricane Sandy.  ICT states that their new data and analysis finds that the technology-driven changes in oil and gas production since 2007 will lead to 835,000 to 1.6 million new U.S. jobs by 2017 and increase the country's gross domestic product (GDP) by $167 billion to $245 billion on a net basis.  The report, including more than 60 original maps, charts and tables, also shows the expected employment gains, by sector and state, for each additional increment of natural gas being produced to serve new demands. One startling piece of information in this report estimates that for every billion cubic feet (Bcf) of additional gas demand per day, there are 13,000 additional direct drilling and pipeline jobs, plus thousands more related to new chemical plants and other gas-using facilities. In turn, these jobs generate a further 10,000 to 30,000 induced indirect jobs in the manufacturing, retail and service sectors.  U.S. production has increased by approximately 12 to 15 Bcf per day since 2007.  The study shows that the economic impact extends far beyond the drilling pad. Jobs are being created in accounting, payroll services, at hotels and restaurants, and for architects, lawyers and engineers.   Obviously this report defers to it's funder, however if just part of this is accurate, it portends a huge boast to our economy.  

Natural Gas Benefits Felt in Key Election States – Additional details from the report highlight the surge in U.S. natural gas production has led to the construction of gas-fired power plants and a renaissance in petrochemicals, steel, polymers, glass, and ammonia plants. The benefits are widespread:  Wisconsin, which has no drilling activity, has seen a “sand rush.” The sand is used as a proppant to hold open fissures created during the drilling process to release the gas. There are already 16 sand mines in Wisconsin and demand for sand drilling now exists in Arkansas and Missouri, too. Georgia has two ceramic proppant factories (an alternative to sand) and more facilities are planned.  North Carolina and South Carolina are home to manufacturers of natural gas turbines but little natural gas.  Iowa will host the first new nitrogen fertilizer factory in the U.S. in over a decade, providing Midwest farmers with a local source of fertilizer.  Pennsylvania, which straddles the Marcellus shale gas region, won a competition for a new Shell ethane cracker plant with 400 employees. The plant will be the first of its kind in the northeastern United States. Three states competed for the plant, which is expected to play a large role in revitalizing the region.  Ohio’s lagging steel industry received a boost when Vallourec & Mannesmann Holdings Inc. announced it would build a $650 million plant in Youngstown to meet demand for drilling materials such as steel pipe. U.S. Steel and Timken also have announced expansions in Ohio. Halliburton, Baker Hughes, and Select Energy Services -- all oil and gas service companies -- have announced construction of facilities within Ohio to meet the needs of drillers in Ohio’s Utica shale play.