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Ohio CEO: “Phones Are Ringing Off the Hooks” With Business Opportunities, Thanks to Fracking



Started March 4, 2017 at 09:45 pm by @Barry D in GoMarcellusShale

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Barry D
03/04/17 09:45:54PM
@barry-d

“Prior to the oil and gas energy boom, this scope of work experience was not prevalent in our part of Ohio. In fact, it did not exist in most of the Midwest. The development of fracking and horizontal drilling expands beyond the Ohio borders. The new energy economy provided by the oil and gas boom is creating new job opportunities for the construction industry, particularly for the electrical construction industry. Growth in this arena is helping address the loss of jobs in the electrical construction industry and we certainly hope the turnaround will continue.”

https://energyindepth.org/ohio/ohio-ceo-phones-are-ringing-off-the-hooks-with-business-opportunities-thanks-to-fracking/

Or maybe we should listen to those anti-oil and gas folks, like the ones commenting on my other post.

I think not. I'll take the economic activity and jobs. Warts and all, the shale revolution will be the saving grace for economies within the shale region, and beyond.

westside
03/04/17 10:45:04PM @westside:
You r crazy with your post
BA
03/04/17 11:48:28PM @ba:

Definitely good news, especially considering what we had to go through the last eight years.


Barry D
03/05/17 10:53:30AM @barry-d:

@ba

I's a ray of light after 8 years of an Administration, through it's policies, which has held back our economy; in particular oil and gas development.


Dan Warner2
03/05/17 08:53:03AM @dan-warner2:

Abstract of a study on the aftermath of oil booms by the University of Oregon:

"The Economic Aftermath of Resource Booms:
Evidence from Boomtowns in the American West
Grant D. Jacobsen and Dominic P. Parker
Published: Economic Journal, forthcoming
Abstract: The current U.S. oil and gas boom is injecting labor, capital, and
revenue into communities near reserves. Will these communities be cursed with
lower long run incomes in the wake of the boom? We study the oil boom-and-bust
cycle of the 1970s and 1980s to gain insights. Using annual data on drilling to
identify western boom-and-bust counties, we find substantial positive local
employment and income effects during the boom. In the aftermath of the bust,
however, we find that incomes per capita decreased and unemployment
compensation payments increased relative to what they would have been if the
boom had not occurred."

This doesn't account for rents that triple in these locales, making it difficult or impossible for young families just starting out, and lower-income workers to afford housing.  It also doesn't mention the increase in crime, traffic, and damage to roads by heavy trucks.  Here on the back roads of WV, we are terrorized by large trucks driven by poorly-qualified drivers.  The potholes are unprecedented.  We are told by flaggers when we can travel to and from our homes, sometimes for hours.  Our utilities are periodically interrupted by operators who are instructed not to stop for low hanging wires 

In North Dakota, the highway department was forced to install shields on the tractors that mow the grass along the roads, to protect the workers from being splashed by urine from jugs tossed out by the truckers. 

The only gainers are the mineral owners, many of whom are separated from these "warts" by the severing of mineral rights from surface rights, a practice bought and paid for by O&G, and forced on the population.


Barry D
03/05/17 10:57:50AM @barry-d:

@dan

Wow! Talk about stating the obvious.

The economy always goes through boom and bust cycles, including individual business sectors and businesses.

I suggest as an example the tech boom and bust of the late nineties. In fact the tech industry is once again in a boom cycle. By your measure we shouldn't be pleased with how that boom affects the economy or the lives of individuals.

To single out the oil and gas industry is disingenuous.

Typical misinformation.


Barry D
03/05/17 11:13:20AM @barry-d:

@dan

Her is a very simple multiple part question. Each part should require only a yes or no answer.

First: Do you own property?

Second: Do you own the Oil and Gas rights?

Finally: If you won the Oil and Gas rights, are you leased?


Dan Warner2
03/05/17 12:18:00PM @dan-warner2:

Yes to all.


Barry D
03/05/17 11:16:47AM @barry-d:

@dan

Having lived and worked in WV I am well aware of the issues of truck traffic and other inconveniences of industry with which residents have had to deal.

But, I would suggest to you that these are not associated with the oil and gas industry alone.

Prior to the recent oil and gas "boom" the coal and logging industries posed similar problems to the residents of the state.

To single out the oil and gas industry is unfair and disingenuous.

Typical misinformation.


Dan Warner2
03/05/17 12:49:26PM @dan-warner2:

I have driven log trucks off and on, and have never claimed the right-of way, nor had flaggers prioritizing my vehicle over the residents of a roadway, nor trapped residents in or outside their homes.  The log and lumber trucks have always operated at the peril of weight restrictions, while the O&G traffic is given a pass.  During the oil boom of the 70's, they would place garbage bags over the weight restriction signs; they don't even have to bother with that today.

Forestry and coal are widespread, long-term industries, not local booms that come and go with the whims of OPEQ.  What is happening with coal, while tragic for those affected, is a result of a resource whose time has come and gone.  Nevertheless, the coal economy lasted for a century or more.  Shale gas wells will likely be abandoned within 20 years.  The Haynesville Shale production is down 46% since 2012.  The mean lifespan of wells in that play is 38 months.  These numbers represent better than expected results.  Gas futures are nowhere near $4 MCF in the foreseeable future, except in the minds of the would-be Jed Clampetts.

Forestry is renewable, with timber growth in WV keeping pace with or exceeding harvesting.

Shale gas is a flash in the pan compared to coal and timber; the flatulence of the earth.


BA
03/05/17 04:17:07PM @ba:

We had a large amount of drilling activity here in NW PA. I don't remember being terrorized by water trucks, and there were a LOT of water trucks, and wells being put in within only a short mileage radius around my properties. As far as trucks getting away with exceeding weight limits, I don't know how it works where you're from, but around here those co's have to post bonds on the roads before they use them. They don't just let them run wild on the roads. Furthermore, any road I've seen that led to a well was in much better shape during and after development than before, at least with dirt roads, because they were required to put down a lot of gravel during and after use. Now that the gas companies have largely left, the dirt roads are going to hell once again because of heavy conventional and atv traffic. And the twp's certainly don't have the money to make them nice again. About all they can do is grade them once in a while. Regarding paved roads, I didn't really notice a difference either way.


Barry D
03/05/17 05:27:19PM @barry-d:

@ba

Thank you for your reasoned response.

Of course not all roads have been destroyed by the oil and gas industry. Of course not all truck drivers working in the industry are discourteous.

This is a typical fractivist technique. Report a couple unverifiable anecdotal stories and then conflate that to mean all the people in the industry or the whole industry is bad. It just is not true.

Are there jerks in the oil and gas industry, yes. So it is with any business.

But to paint all the people in an industry or a whole industry with a broad brush is wrong.

Especially when none of the tall tales is verifiable.

It's all a part of the mental disorder associated with fractivism.


Dan Warner2
03/06/17 12:38:38AM @dan-warner2:

Curious that my experiences are characterized as unverifiable, anecdotal, and false, while ba's are judged to be a "reasoned response".  


BA
03/06/17 12:52:14AM @ba:

Was my post unreasonable?


Dan Warner2
03/06/17 01:42:46AM @dan-warner2:

'Reasoned' and 'reasonable' are not synonyms.

My reply was more directed at Barry, but you're in the same corner.

My point is, your and my posts each relate personal experience, yet they are judged differently, mine being deemed false, even insane, while, yours is deemed accurate. 

The topography of the two locales make the comparison of roads, as regards traffic, one of apples vs oranges.

It is true that some secondary roads have been made smoother, allowing the trucks to drive faster.  In my case, the road surface was built up, while the berm was not, leaving drop-offs of up to a foot.  As we used to use the berm to pass oncoming traffic, this has created bottlenecks, due to the risk of damage to the underside of the vehicle.  Because of this, a school bus was sideswiped recently, for the first time in memory.


Barry D
03/06/17 01:00:13PM @barry-d:

@dan

In your memory.

So what you are saying is that we are to believe that no school bus in the state has ever had an incident with any other type of commercial vehicle.

Again, another anecdotal unverifiable story.


Dan Warner2
03/07/17 10:42:34AM @dan-warner2:

Responding to a thread or post with an opposing opinion is not "bitching".  It is, in fact, a response to bitching.

I may not be making myself clear enough, though:

The gas developer has paved our road so that their equipment can travel it more efficiently (read, faster).  I know the difference between the two area's topography, because I have been here and there.  It is, PA, not North Korea; they let other people in.  It seems clear, though, that you have not been here, or you could understand that the back roads are usually ledges carved into a hillside, with the gauge of the road being determined by the width of that ledge, minus space for a drainage ditch.  It is the ditch side that offers the one-foot dropoff; the one on the other side can be much higher.

Is it your position that I should stand in protest, allowing the developer and his bought and paid for politicians seize my 'rights' and decide what I should realize from them, as has happened to a family member?  My brother failed to respond to a lawsuit in which he was named "defendant", had his property seized, and cannot even discover the whereabouts of the proceeds.  This was over 5 years ago.  

Imagine being named defendant just for owning something someone else wants.


BA
03/07/17 02:04:13PM @ba:

Again, dancing on the head of a pin about how the word "bitching" is used. Who freakin' cares? What makes you so sure I haven't been to west virginia, or that I've spent my life under a rock? Northwest PA topo is varied, from flat to steep mountain sides, so your assumptions about the terrain I was referring to is just a guess. You got paved roads out of the deal, and you're complaining? I was happy about gravel. You're leaving a lot out about your brothers situation. You don't just get named a defendant for existing. There is a lot more to what happened to your brother that you either can't or won't say. It's none of my business anyway, but don't arbitrarily insinuate that people will have their land seized because they disagree with a gas company's use of a road. He should've at least showed for the court date though, lawyer or no lawyer, to show respect to the court. I would think a judge would at least take that into consideration.


Dan Warner2
03/07/17 10:45:19AM @dan-warner2:

No, what I am saying is it was the first time on this road in the 55 years that I have lived here.


Barry D
03/06/17 01:03:55PM @barry-d:

@dan

You are getting as bad as Paul. You need to read what you say before you post.

The fact that there may no berm is the responsibility of  which ever entity is in charge of that road, not the oil and gas industry.

Next, you state that you use the berm to pass. Again the width of the road is the responsibility of a road department.


Barry D
03/06/17 01:04:04PM @barry-d:

@dan

You are getting as bad as Paul. You need to read what you say before you post.

The fact that there may no berm is the responsibility of  which ever entity is in charge of that road, not the oil and gas industry.

Next, you state that you use the berm to pass. Again the width of the road is the responsibility of a road department.


BA
03/06/17 02:47:15PM @ba:

I know the difference, but the words are much more similar than they are different and share the same root. You're just playing the semantics game because you don't have a sound argument. How do you know my topography anyway, and why would that make the comparison apples and oranges? The only difference I see is the build up of the road which wasn't like that here. If you are a leased land owner, then you are part of the mechanism, and that makes you culpable, in part, as the companies you're bitching about. If you want to blame someone for the traffic problems, look at yourself first.


Barry D
03/05/17 05:15:08PM @barry-d:

@dan

All of your comments are anecdotal and not supported by facts. Just as I suspected.


Gerard Mc
03/05/17 04:26:54PM @gerard-mc:
The amount of hydrocarbons to be recovered from the Appalachian Basin will be measurable by generations, not years or decades.
Thinking otherwise is a gross display of ignorance.

Barry D
03/05/17 05:16:52PM @barry-d:

@gerard

Of course you are correct. Dan's comments are his opinion and have no basis in fact.


Dan Warner2
03/06/17 01:45:28AM @dan-warner2:

And again, the post you like is more credible than the one you don't.  My statistics were from industry sources.

These wells are balloons.


Barry D
03/06/17 06:15:12PM @barry-d:

@dan

Please provide those sources.


Dan Warner2
03/07/17 10:12:57AM @dan-warner2:

The stats are available to all.  Use your energy to educate yourself, rather than throwing rotten tomatoes. 

It would be a mental disorder for me to keep doing the same thing, expecting different results.


JWE
03/06/17 09:15:32AM @jwe:

With the strong possibility of a cracking plant to be located at the investment of $6.2 Billion  in Belmont County , East Central Ohio is on the threshold of becoming the epi-center of economic development.   For five years, construction jobs will flourish.  When this plant becomes operational, many satellite plants will develop up and down the Ohio River in both WV and OH.  Hopefully a positive announcement from the owners will be made by year-end.


Dan Warner2
03/07/17 10:03:08AM @dan-warner2:

With that can having been kicked down the road another 9 months, I'm not sure I see it as strong.  Still, the construction bubble, permanent jobs, and ancillary-offs will not offset the economic effect of the deflated drilling economy.  This is because the exploration is funded by speculative capital.  The budgets of these developers are inflated far beyond what is normal for these areas, while the permanent jobs will reflect local wage structures.  The temporary construction jobs for a project this size will largely be filled by companies and people from other areas, which will continue to support a housing bubble. 

As a construction worker, I have fingers crossed for the project, but I don't see it as icing on a cake.


Gerard Mc
03/07/17 02:16:01PM @gerard-mc:
Replies, apparently, still do not work from mobile devices (for me, anyway).
In response to a comment way downthread regarding output potential from the Appalachian Basin, monthly and quarterly reports are available from the PA and OH regulators.
These numbers show output that is nothing short of astonishing, at the well level and for the Marcellus, Utica, and Upper Devonian formations in toto.
This area may very well be the repository of the largest hydrocarbon resources on the planet.

BA
03/07/17 02:25:58PM @ba:

That is excellent news. I hope they start leasing in northwest/northcentral PA once again.


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