DECEMBER 2014 • A FREE MONTHLY PUBLICATION
10106320
The Hunter Family of Companies
18 Locations to Serve You in PA, NJ, NY, WV & OH
• Oil & Gas Services • Truck Sales • Leasing & Rental • Trailer Sales • Body Shop • Parts & Service
from our family to yours
10286488
www.HUNTERTRUCKSALES.com
Subscriptions Now Available! Fill out the form below and mail to: Gas & Oil Magazine 212 E. Liberty St. • Wooster, OH 44691 330-264-1125
Table of Contents 4
WHERE THE SHALE JOBS ARE
6
THE NEXT EMERGING ECONOMY THE UNITED STATES OF AMERICA
8
HALLIBURTON BUYS BAKER HUGHES
10
ELECTION DAY 2014 IN PENNSYLVANIA
12
INDUSTRY PROVIDES A RETURN HOME
15
PENNSYLVANIA HAS THE GOLDEN GOOSE AGAIN!
16
KEYSTONE PIPELINE DOWN, BUT NOT OUT
Rhonda Geer
18
MARINER EAST PIPELINE PROPEL’S PHILLY’S GROWTH
Christy Penland
19
HAPPY BIRTHDAY MARCELLUS!
PUBLISHER Andrew S. Dix
EXECUTIVE EDITOR Ray Booth
CONTRIBUTING EDITOR
ADVERTISING
Ed Archibald
DIGITAL CONTENT MNGR Brad Tansey
ART DIRECTOR Pete Kiko
“Gas & Oil” is a monthly publication jointly produced by Dix Communication newspapers across Ohio & PA. Copyright 2014.
Oilfield Photo of the Month:
This month’s Oilfield Photo of the Month comes to us from gas & oil service rep Doug Berkley, of Pittsburgh.
Tom Shepstone – Shepstone Management he Energy Information Administration is out with some more stunning information about the power of shale jobs. It’s where the action is. We frequently go to EIA for data because no one does it better in terms of collecting and objectively analyzing data on the energy system. We have another example from their November 5 Today In Energy column authored by Robert McManmon. Titled “Texas Leads Nation in Growth in Oil and Natural Gas Production Jobs During 2013,” it’s packed full of revealing data on the industry across several plays – data on shale jobs. Here is the chart that got my attention; it is a statistical concerto not unlike a sheet of music for something akin to the William Tell Overture where the music is intended to invoke a Swiss Alps image in the mind of the listener. Putting it in American terms, it’s like the Lone Ranger riding to the rescue, which is no coincidence, given it’s the same music and shale jobs are, in fact, riding to the rescue of our economy and the rural areas where all that activity is taking place.
T
The data is from the US Department of Labor, Bureau of Labor Statistics, Quarterly Census of Employment and Wages and the jobs limited to those related directly to oil and gas extraction, support activities for oil and gas operations and
drilling oil and gas wells. The numbers do not reflect all the ancillary and indirect jobs involved, which, as we now from Pennsylvania data, for example, represent the bulk of the economic activity. The EIA data doesn’t refer to shale jobs per se, but a quick look at the map included makes it explicitly clear that’s where they come from; six shale plays plus the Permian Basin, which has both shale and conventional oil and gas development.
According to the EIA: Texas added more than 19,000 new private sector jobs in oil and natural gas production in 2013, almost six times the number added in New Mexico, the next highest state for oil and natural gas production jobs added last year. The extraction, drilling, and support jobs categories are a measure of on-theground production jobs, and do not reflect the many jobs at oil and natural gas corporate headquarters based in Texas. In the past decade, growth of jobs in oil and natural gas extraction, drilling, and support activities has outpaced the national average of private sector job gains. Overall, oil and natural gas production jobs in the United States increased from 292,846 annual jobs in 2003 to 476,356 in 2008, a 63% increase. Following the net loss of 54,323 oil and natural gas
production jobs during the 2008-09 recession and relatively little national job growth, jobs in oil and natural gas production increased another 28% from 2009 to 2013, from 422,033 to 586,884. Additionally, average wages of oil and natural gas production jobs were $108,000 in 2013, more than twice the average wage for all private sector industries. Since 2009, average wages from oil and natural gas production jobs have increased by 12%, compared with a 10% increase for all private sector industries. The EIA does note “much of the growth in oil and natural gas jobs can be traced to growing onshore production in several shale formations in the lower 48 states” pointing out the following: Texas is home to the Eagle Ford, the most prolific oil-producing play, as well as much of the Permian and Haynesville formations. North Dakota contains most of the Bakken formation, whose oil production has spurred significant employment and state product growth over the past decade in what was one of the smallest state economies. New Mexico has four large counties producing from the oilrich Permian Basin that contains 3 of the 100 largest oil fields in the United States. Pennsylvania has seen significant job growth from natural gas production in the Marcellus region in recent years, although growth flattened during 2012-13.
Colorado and Wyoming share the oil and natural gas-producing Niobrara formation. The EIA’s Drilling Productivity Report provides more details but that musical chart says it all, doesn’t it? Shale jobs represent the masked man riding to the rescue of rural America, while helping all of America to become energy independent. The Lone Ranger rides again and William Tell is still out there performing miracles with his fine-tuned skills. Tom Shepstone is owner of Shepstone Management Company and the publisher of Natural Gas Now (www.naturalgasnow.org). Follow on Twitter at @NaturalGasNow and visit NaturalGasNow.org for more information!
BETHEL MACHINE & MANUFACTURING, INC. YOUR LOCAL SOURCE OF CNC MILLING & TURNING QUALITY MACHINING FOR OVER 50 YEARS
412.833.5522
3050 INDUSTRIAL BLVD.• BETHEL PARK, PA • BETHELMACHINE.COM
THE NEXT EMERGING
THE UNITED STATES of AMERICA Rep. Mike Kelly – Pennsylvania Third District ommentators spend a lot of time these days talking about “the next emerging economy.” They look for economies with great potential and fresh opportunities for growth. They point to India, Brazil, and China, among others. I say, however, look no farther than right here in the United States, especially the burgeoning Marcellus and Utica gas plays of Pennsylvania and Eastern Ohio. I am privileged to represent a region that has been blessed with all the necessary tools to become a leader in this nation’s economic renaissance. With the right strategy and leadership, I believe the state of Pennsylvania and our great nation will not just survive but thrive. Pennsylvania is a state rich in energy history, having developed the first commercial oil well along with the coalmines that fueled the industrial revolution. In the 21st century, we are once again a leader in energy development claiming the world’s second largest energy field. We are a leader at harnessing our God-given resources both above and below the ground. We are second in natural gas production, second in nuclear generation, fourth in coal production, ninth in solar capacity, fifteenth in wind capacity, and nineteenth in crude oil production. These resources, in conjunction with our manufacturing infrastructure, position Pennsylvania as a keystone in harnessing our energy potential and developing ours as the world’s next great emerging economy. Unfortunately, over the past several years, this country has experienced a lack of leadership on issues crucial to solidifying our energy independence and helping our energy sector flourish. We have witnessed an administration that caters to a small group of environmentalists rather than create hundreds of thousands of family-sustaining jobs with the development of the Keystone XL Pipeline. This same administration imposed new restrictive regulations on carbon emissions from coal-fired power plants at a time when our coal industry has never been cleaner and more efficient. Equally as frustrating, the Obama administration has been painstakingly slow
C
in allowing for increased exports of U.S. liquefied natural gas (LNG) to our nation’s allies, which would alleviate a number of geopolitical concerns and allow our country to not only participate in but dominate the global energy markets. It is essential that elected officials understand that an “allof-the-above” energy strategy must embrace all that is below our feet. It is equally important that we continue to harvest these resources safely and responsibly. We owe this to our constituents, who elected us to create family-sustaining jobs, lower energy costs for all Americans, power a domestic manufacturing renaissance, and ensure our energy independence from nefarious foreign actors. All my life, I have been blessed to call a Western Pennsylvania small town “home.” It is where I raised my family and ran my own business. Now, I have the honor of representing it in the United States Congress. Numerous towns in our region – like Butler, PA – literally built the greatest nation the world has ever known with manufacturing and abundant natural resources. For too long Western Pennsylvania and Eastern Ohio have been known as the heart of the rustbelt, but with government’s heavy hand out of the way it can be the heart of America’s economic resurgence. Representative Mike Kelly (R) represents Pennsylvania’s Third District in the U.S. House of Representatives.
$$$ Need More Money $$$
Status Financial Solutions ... is here to help.
u Working Capital u Accounts Receivable Financing u Equipment Leasing & Financing u Merchant Advances Call Cliff today for more info, you have nothing to lose
877-857-8845
We are a full-service commercial financial broker who specializes in finding solutions for businesses that have been unable to secure conventional funding.
American Made Hardwoods
Jonathan Fahey – AP Energy Writer EW YORK (AP) — In a deal that shows just how quickly falling prices can upend the energy industry, Halliburton is buying rival oilfield services company Baker Hughes for cash and stock worth $34.6 billion. Global oil prices have tumbled 31 percent over the past 5 months to levels not seen in four years. That has forced the industry to cut costs by delaying or scaling back drilling — which means less work for Halliburton and Baker Hughes, companies that manage oil and gas fields for energy companies. Even when prices were high, oil and gas companies had begun to slow capital spending and new drilling as rising costs cut into profit margins. Energy companies now have even less to spend. Halliburton Chairman and CEO Dave Lesar said Monday that the combined company will be able to reduce costs by $2 billion a year. The oil plunge also lowered the price tag on Baker Hughes. Baker Hughes shares slumped 32 percent — from $75 to $51 — between late June and Thursday, when the companies said a deal was being discussed. The drop reduced Baker Hughes’ market capitalization by $10.4 billion. Halliburton will pay $78.62 per Baker Hughes Inc. share. Baker Hughes shareholders will receive 1.12 Halliburton shares plus $19 in cash for each share they own. Baker Hughes shares gained $5.34, or 9 percent, to $65.32. Shares of Halliburton fell $5.85, or 10.6 percent, to close at $49.23. When the transaction is complete, Baker Hughes stockholders will own approximately 36 percent of the combined company. More energy deals may be in the works as companies with stronger balance sheets buy those
N
that have seen their value drop precipitously. In a recent conference call with investors, ExxonMobil hinted that it may be a good time to use its considerable cash position to buy undervalued assets. Kurt Hallead, an analyst at RBC Capital Markets, says conglomerates General Electric and Siemens, which have been beefing up their oil and gas services divisions, could look to expand further now that potential targets have gotten cheaper. The Halliburton-Baker Hughes deal comes just days after talks between the two had stalled. Baker Hughes said Friday that Halliburton refused to raise its first and only offer and Halliburton was preparing to attempt a hostile takeover. The combined company would generate slightly larger revenue than Schlumberger Ltd., now the world’s biggest oil services company. “The combined entity would not have the breadth or depth of Schlumberger,” wrote Judson Bailey, an analyst at Wells Fargo in a research report before the deal was agreed to. But, “we do believe (Halliburton-Baker Hughes) creates a more formidable number two competitor in several areas.” While Halliburton operates in 80 countries, industry analysts say it didn’t have the global scale to compete with its larger rival, Schlumberger. Halliburton and Baker Hughes have both benefited from a boom in U.S. drilling, which they helped fuel through the development of technology used extract oil and gas from shale, deep offshore, and other tricky geologic formations. Halliburton is a leader in hydraulic fracturing services, a method used to create cracks in oil and
gas-bearing rock that allows the hydrocarbons to flow to the surface. Baker Hughes has developed some key technology that would help Halliburton expand its offerings in U.S. shale plays. Baker Hughes created drill bits that can change direction underground, allowing drillers to stay in the most productive sections of rock. Baker Hughes also has developed sensors that allow drillers to understand what kind of rock they are encountering underground, and chemicals to help make the oil and gas flow more easily out of the well. Halliburton will also gain access to Baker Hughes technology that can extract oil from older oil fields. These fields no longer have enough subterranean pressure to push oil to the surface, so drillers must force it out using a process known broadly as “artificial lift.” The boards of both Houston companies approved the deal unanimously and it is expected to close in the second half of 2015. Shareholders and regulators must still sign off on the tie-up. Halliburton said that it is willing to divest businesses that generate up to $7.5 billion in revenue, if required by regulators, but the company believes it will have to sell significantly less. Halliburton has also agreed to pay a termination fee of $3.5 billion if the deal falls through. Jonathan Fahey can be reached at http://twitter.com/JonathanFahey .
NOW RECRUITING DRIVERS OHIO: Diamond; Cadiz; and Norwich, OH WEST VIRGINIA: Masontown, WV PENNSYLVANIA: Smithfield; Somerset; Cherry Tree; Towanda and Tioga, PA
Let Us Be Your Career Solution! WHY NUVERRA?
CDL DRIVER REQUIREMENTS
• Competitive Pay plus night shift differential pay • Benefits after 60 days include: - Health Benefits – Blue Cross/Blue Shield of ND Medical, Dental & Vision - 401k with employer match in form of company stock - Employee Stock Purchase Plan (ESPP) - Life Insurance, STD, LTD • Paid Time Off accrued each pay period • $1,000 sign on bonus • Monthly safety bonus • Referral Bonus
• One year CDL driving experience
• Class A or B Tanker endorsement • Current medical card • Must pass a drug/alcohol test • Must pass physical ability test • Must pass background check • Clean driving record and background
Field Operations Manager:
1 position available to oversee Cadiz & Diamond truck yard operations. www. nuverra.com/careers INTERESTED CANDIDATES CAN APPLY SUBMIT BY MAIL: 300 Cherrington Parkway • Suite 200, Coraopolis, PA 15108 SUBMIT BY EMAIL: careers2@nuverra.com • SUBMIT BY FAX: (412) 246-9605 For questions or additional information, please call: 877-920-7724
Specializing in explosion proof, spark resistant, intrinsically safe cranes for use in Marcellus Shale
DEVELOPING ENERGY SAFELY XTO Energy is committed to safety in every aspect
of our operations. That’s why we train tirelessly to spot potential issues before they ever become problems. Before the first truck arrives, throughout development, and even after the rig is long gone, our people work to protect local communities. The safety of our employees, contractors and neighbors is a top priority during every phase of our operations.
xtoenergy.com 10293844
KEYSTONE CRANE AND HOIST CO. 396 Morganza Road Canonsburg, Pa 15317 Since 1976
www.keystonecrane.com 724-746-5080 keystonecrane@yahoo.com Fax 724-746-5082
Louis D. D’Amico – Pennsylvania Independent Oil and Gas Assn. he result of the November 4 gubernatorial election was disappointing, but not surprising. Tom Corbett trailed his challenger in the polls throughout the race, and in the end he was the first chief executive to be defeated in the 46 years since Pennsylvanians began allowing their governor to run for a second term. Tom Corbett essentially spent the campaign running against himself—and lost by an 11-point margin. While it’s too early to predict what will happen to the oil and gas industry under Governor-elect Tom Wolf, we do know that one of his major campaign pledges was to impose a 5-percent severance tax on shale- gas production to be used primarily for schools, along with roads and renewable energy technology. The new governor will be up against a General Assembly where Republicans strengthened their majority in both chambers. Early results showed the number of Democrats dropping below 90 in the 203-member House of Representatives and the GOP expanding its 27-23 margin in the Senate by two or three additional seats. As one veteran Harrisburg-watcher told us, “Wolf’s progressive agenda is very ambitious and will be difficult to accomplish in a Republican-controlled, hyper-partisan legislature which made it difficult for Governor Corbett to get many of his initiatives passed. The governor-elect and lieutenant governor-elect face formidable budgetary challenges in the next session beginning in January. The first challenge will be to find a way to close what is estimated to be a $2 billion structural budget deficit. In addition, the governor will need to find a way to address basic education funding, which was often cited by voters as their number-one concern for Pennsylvania.” At the same time, both chambers will see new leaders when the legislature convenes in January. Speaker of the House Sam Smith from Jefferson County, an industry supporter, did not seek reelection. His replacement as the top House officer will be Mike Turzai (R-Allegheny). The second-ranking Republican in the House will be Dave Reed of Indiana County, serving as majority leader. Both Turzai and Reed oppose a severance tax.
T
On the Senate side, Majority Leader Dominic Pileggi of Delaware County—a severance tax supporter—came under fire recently from other Republican senators for not pushing a more conservative agenda this session. His replacement will be Jake Corman (R-Centre), and Joe Scarnati (R-Jefferson) will continue as the Senate president pro tempore. PIOGA’s hope is that whatever changes occur in the General Assembly’s leadership, it will translate into greater opposition to imposing a tax on natural gas production. AGENCIES, APPOINTMENTS AND NOMINATIONS Of course, the new governor gets to choose who will lead the Department of Environmental Protection and other state regulatory agencies, as well as set the agenda for those agencies. Wolf’s official platform on energy development included the following: • Ensure responsible drilling to protect Pennsylvania’s environment. New drilling technologies and water recycling processes would allow for exploitation of natural gas resources without causing environmental degradation. • Increase funding for the Department of Environmental Protection so that it is sufficiently staffed and able to provide proper oversight of drillers. • Bring greater transparency to the fracking process by requiring drillers to publicly disclose chemicals used in the hydraulic fracturing process, and lifting the current gag order on physicians. • Allow local communities more control in zoning. “If done right, continued development of natural gas is a bridge to a clean energy future and renewables and will allow Pennsylvania to have good-paying energy jobs; a safe and secure environment; and the ability to make critical investments in education, health care, and infrastructure through a severance tax on oil and natural gas extraction,” the platform stated. (Note that in this particular mention of a severance tax, the candidate lumped together all oil and gas production.) Finally, as mentioned elsewhere in this issue, two vacancies will have to be filled on the Pennsylvania Supreme Court early on in Wolf’s term. The court continues to be a focus for the industry over issues such as the ongoing litigation related to Act 13. Louis D. D’Amico, President and Executive Director of PIOGA (Pennsylvania Independent Oil and Gas Association)
KX Series
ZD Series
M Series
B Series
Quality. Reliability. Service. All in the family. From lawn and garden tractors to compact tractors, excavators and gasoline and diesel utility vehicles. Kubota delivers the highest standards for quality and service. So, climb aboard the Kubota of your choice and join the family.
www.kubota.com
Optional equipment may be shown. ŠKubota Tractor Corporation, 2013
10313285
John Lowe – Dix Communications
A
Cadiz, Ohio area native who started his work life as a laborer who had to leave the region to remain employed has returned as a result of a resurgence in the gas and oil industry. J. Todd Henwood now serves as survey manager for Michael Baker International. He is licensed as a land surveyor in two states and is enjoying a prestigious career not far from where he grew up. But employment prospects were not always so bright. “I graduated from Cadiz High School and grew up in Cadiz,” he said. “That’s where my family is from. When I graduated, there wasn’t anything going on job-wise. So I got a job surveying for fiber optic cable lines down in Kentucky.” He worked as a rodman on a survey crew and he went on to Texas and Arkansas surveying for natural gas pipelines. That assignment was followed by another job surveying more fiber optic lines in Florida. “Hotel living began to wear on me, so I settled down for a while in Okeechobee, Florida.” Eventually, he returned to Ohio, albeit to Columbus — still more than 100 miles from home. But his Columbus sojourn was a turning point for him because it was then that he resolved to obtain a professional surveyor’s license after years of working on survey crews. “Now, you have to have a four-year degree, but I ‘grandfathered’ in,” he said. “So, I sat for the test, passed it and got my professional surveyor’s license.” As a professional surveyor, he was transferred to Cincinnati. About five or six years ago, his mother, Jane, who works in the office of the Harrison County Clerk of Courts, began to notice a trend at the courthouse.
Increasing numbers of people were coming in to the recorder’s office to do title searches. It was the first hint of the coming gas and oil industry resurgence. “Every year that I came home, I saw more and more trucks on the [Harrison County] roads,� he said. “It just amazed me how much it had increased. “Once the coal [industry] had dried up, there was nothing here. Gas and oil has rejuvenated these counties and I wanted to come back and be part of that.� He got his chance seven months ago when the opportunity arose with Michael Baker International, a global provider of engineering, development, intelligence and technology solutions. The company employs a gamut of professionals from surveyors to engineers and environmental experts. “They really watch the environment and work hard to put things back the way they were,� he said. Henwood said an economic flowering has resulted from the booming gas and oil industry. “It’s a plethora of industries and companies contributing to this,� he said. He cites welders, heavy equipment operators, truck drivers, computer aided design professionals and engineers among others. He also believes the industry is here for the long haul. “I was at a conference and one of the corporate executives said that the engineer who is designing the last drill pad isn’t
even born yet.� The boom also is extending beyond the gas and oil industry, Henwood believes. “I think one of the neat things is all of the activity. New restaurants are opening up. When I go home, I see that the landscape is changing. New office buildings are appearing where before there was nothing but a hillside.� Henwood is excited for the community and himself. “Having started as the low man on the totem pole, 28 years later I am happy to be home and working on the gas lines. It’s sort of come full circle.�
We Make a Difference
With a national Oil & Gas footprint, Baker delivers full-service capabilities to Marcellus and Utica Shale producers and operators through our 900+ regional professionals. Ëš Ă&#x;ĂœĂ Ă?ĂŁ Ëž Ă˜Ă Ă“ĂœĂ™Ă˜Ă—Ă?Ă˜ĂžĂ‹Ă– Ă?ĂœĂ—Ă“ĂžĂžĂ“Ă˜Ă‘ Ęś Ă?Ă—Ă?ĂŽĂ“Ă‹ĂžĂ“Ă™Ă˜ Ă?Ă?Ă“Ă‘Ă˜ Ă˜Ă‘Ă“Ă˜Ă?Ă?ĂœĂ“Ă˜Ă‘ Ëž Ă™Ă˜Ă?ĂžĂœĂ&#x;Ă?ĂžĂ“Ă™Ă˜ Ă‹Ă˜Ă‹Ă‘Ă?Ă—Ă?Ă˜ĂžËš Ă˜Ă?ĂšĂ?Ă?ĂžĂ“Ă™Ă˜ 1.800.553.1153 Í’Í‘Í‘ Ă“ĂœĂ?Ă“ĂŽĂ? ĂœĂ“Ă Ă?Ëœ Ă™Ă™Ă˜ Ă™ĂĄĂ˜Ă?Ă’Ă“ĂšËœ Í’Í–Í’Í‘Í™ Í’Í‘Í’ Ă–Ă?Ă Ă?Ă–Ă‹Ă˜ĂŽ Ă Ă?Ă˜Ă&#x;Ă?Ëœ Ă‹Ă˜ĂžĂ™Ă˜Ëœ ͕͕͓͑͘
MBAKERINTL.COM
10313775
Pat Stefano – State Senator-Elect, 32nd District n the 32nd Senatorial District, which includes all of Fayette and Somerset Counties and parts of Westmoreland County, you can find a great microcosm of what is going on in the Energy sector and provide a veritable do’s and don’ts list for Pennsylvania’s elected leaders as we consider how to address our budgetary crisis. At the turn of the last century, my hometown of Connellsville had more millionaires per capita than almost anywhere else because of the coal and coke boom. The federal government’s war on coal has seen coal mines and power plants close, jobs lost and areas devastated in their wake. The coal industry is fighting back and doing everything it can to survive but it can only do so much to counteract the crushing effect that Obama’s EPA is having on them. Pennsylvania needs to look at what happened here and realize that it can ill afford to simultaneously wage a war on natural gas jobs as well. With a newly elected governor who pledged to impose a severance tax on Natural Gas and large, pro-jobs, Republican majorities in both houses of the legislature the issue of whether to impose additional taxes on the industry is going to be a key contention in the upcoming budget negotiations. Pennsylvania could be on the cusp of a third great economic expansion thanks to the energy industry if we don’t enact policies that will stunt and even halt its growth. During my campaign I knocked on over 17,000 doors. In addition to learning what kind of shoes were comfortable, I learned a lot about the natural gas industry by talking to voters who worked in the industry, whose job supports the industry or who have a lease on their property. We have to take into account 3 major issues when we discuss a severance tax. First, we cannot hurt the impact fee that is supplying money to the municipalities and counties that actually have the drilling in their back yards. The 32nd district received nearly $2 million in these moneys which went to rebuild roads, expand sewage lines and other worthy projects. If we allow this money to go to the general fund in Harrisburg it won’t be utilized in the local municipalities which would be devastating. Second, we cannot tax the industry out of Pennsylvania. If we impose a tax that makes it even more appealing to do business in another natural gas rich state we will see a great loss of jobs and revenue. It is often said by severance tax proponents that Pennsylvania is the only state that doesn’t impose a severance tax on natural gas. What they don’t say is that when you look at the entire tax burden, including among the highest
I
. t I l l i K t o N s ’ Let
Corporate Net Income Taxes in the nation, a sales tax, a personal income tax and the impact fee, that Pennsylvania is getting significant revenue from the natural gas industry already. Finally, lease holders have a huge risk with a severance tax falling on their share of their royalty payment. I stood on someone’s front porch with their lease and they showed me the language in the lease. We need to be sure they are protected in anything that happens. In the musical “Into the Woods”, which will be released as a movie around Christmas time, it partially retells the story of Jack and the Beanstalk. As the familiar tale goes, Jack climbs the beanstalk to the kingdom in the sky repeatedly and steals more and more from the Giant. In the show, as Jack parades around the stage with the Golden Harp, Jack’s befuddled mother looks at her son and declares “Jack, you’ve taken too much.” A bit of foreshadowing as shortly thereafter the Giant comes down the beanstalk and wreaks havoc upon the characters of the show. My colleagues don’t want to be put in the situation of realizing too late that we have taken too much and watch an industry that has brought so much to our commonwealth leave behind joblessness and poverty as the federal government’s war on coal has done to the coal towns that dot the landscape in the 32nd District. I’ve seen what a war on a particular industry can do to a community. I can’t stand by and let another ill-advised attack on an industry do that to the district that I have the great honor to represent. We must work together as policy makers and be sure that our actions don’t have unintended consequences for our constituents back home. If we don’t, we may stand back and say “Pennyslvania, we’ve taken too much” and see our people hurt because of it.
GAS & OIL SUPPLY COMPANIES LEASE OR BUY OPTIONS ON THIS GREAT LOCATION Great Office Areas and Accessible Living Quarters; Additional 3 stall garage; one with 12 ft overhead door and car lift; Two Pole 10149 ST. RT. 21 ! STRASBURG Bldgs: 40 x 53 and 72 x 40 Concrete floors, 16’ overhead doors; Well Maintained Barn for Storage Overhead garage door and electricity and plenty of storage; Smaller concrete block buildings and wood storage building; Fencing; Five Water Wells on the property; Lease or Lease Option may be available; Minutes to the I-77 Interstate and located on a State Route. $590,000.
SHARON ROSTAD 330-827-2171
Dina Cappiello – Associated Press ASHINGTON (AP) — Incoming Senate Majority Leader Mitch McConnell is promising the new Republican majority will quickly resurrect Keystone XL pipeline legislation killed by Democrats, potentially setting up an early 2015 veto confrontation with President Barack Obama. “I look forward to the new Republican majority taking up and passing the Keystone jobs bill early in the new year,” the Kentucky Republican said Tuesday, shortly after the bill fell one vote short of the 60 votes needed to advance. He was joined by incoming Senate Energy Committee Chairwoman Lisa Murkowski, R-Alaska, who said the fight wasn’t over. The vote was a blow to Sen. Mary Landrieu, D-La., who had forced the issue onto the Senate agenda, and who faces difficult odds in a Dec. 6 runoff election against Republican Rep. Bill Cassidy. “I’m going to fight for the people of my state until the day that I leave, and I hope that will not be soon,” she said. Republicans are likely to have enough votes to assure the bill’s passage in January, when they will have at least 53 seats — 54 if Cassidy wins the Louisiana runoff. “If you look at new Congress, you can count four more (GOP seats) right away, and there may be others,” Sen. John Hoeven of North Dakota, the lead sponsor of the bill, said after the 59-41 vote Tuesday. “You can see we’re well over 60.” Hoeven acknowledged that Republicans would need 67 votes to override a veto, but said one possibility is to include
W
Keystone in a larger energy package that may not prompt a veto threat. The vote was one of the last acts of this Senate controlled by the Democrats. It is expected to complete its work by midDecember. Cassidy, Landrieu’s Republican opponent, said Louisiana families “need better jobs, better wages and better benefits,” and the pipeline would provide them. Democratic divisions were on vivid display in a bill that pitted environmentalists against energy advocates. While Obama opposes the measure, likely 2016 presidential candidate Hillary Rodham Clinton has repeatedly refused to take a position. Most recently, her spokesman did not respond to two requests over the weekend to do so. The project would move oil from Canada into the United States and eventually to the Texas Gulf Coast. Supporters say it would create jobs and ease American dependence on Middle East oil. A government environmental impact statement also predicts that a pipeline would result in less damage to the climate than moving the same oil by rail. Critics argue that the drilling itself is environmentally harmful, and said much of the Canadian crude would be exported with little or no impact on America’s drive for energy stability. At the White House, press secretary Josh Earnest said the measure is something “the president doesn’t support because the president believes that this is something that should be determined through the State Department and the regular
process that is in place to evaluate projects like this.” After the vote, five people were handcuffed and led off by Capitol police outside the Senate chamber after breaking into loud yowls. One was wearing what appeared to be Native American beads and feathers in his hair. Follow Dina Cappiello on Twitter www.twitter.com/dinacappiello
NEW & USED TRAILERS • Flatbed Trailers • Dropdeck Trailers • Grain Trailers • Tag Trailers • Refrigerated Trailers • Dump Trailers • Van Trailers
SERVICE & REPAIR
• Small Fleet Service • Preventive Maintenance • Roadside Breakdowns • Breaks, Airbags, Air Systems • Portable Welding • General Maintenance • Insurance Claims • Major Wreck Repair • Roadside Breakdowns
Livestock, Deckover, Flatbeds, Tiltbed, Dump, Utility, Cargo, Custom Enclosed, Car Haulers, Landscape Trailers
PARTS • SALES • SERVICE • FABRICATION
If You Can’t Find It... We’ll Built It!
1569 Steele Hill Rd Northwest, New Philadelphia, OH, 44663
Mr. Trailer Sales specializes in custom building and fabricating
(877) 787-4753
156 Steeele Hill Rd., New Philadelphia, Oh 44691 Phone: 330-339-7701 www.mrtrailersales.com
rrostad@triplertrailer.com
STRAW FOR SALE WITH DELIVERY
h t t p : / / w w w. s t r a w f o r s a l e o h i o . c o m /
Semi trailer deliveries to job-sites of small square, rounds, and large square bales.
*Certified, Weed Free straw available too*
Serving Eastern Ohio, Western Pennsylvania & Northern West Virginia For all of your Western Pennsylvania and Northern West Virginia Fuel and Lubricant needs,
call Ron Klemm
330.407.1416
10277262
Mary @ 740-974-8112 Transportation Office, Inc. Lancaster, OH
Reliable Service Close to Your Job Site!
330-407-1416
www.1stChoiceEnergyServices.com
Joe Massaro – Energy In Depth In last month’s edition of Pennsylvania Gas & Oil magazine, I wrote about how continued shale development in the region is bolstering Philadelphia’s promising future as an energy hub. As noted in the column, the only thing lacking in the region (and hindering Philadelphia’s potential growth in the process) was the absence of pipeline infrastructure needed to take full advantage of the natural resources developed across the Commonwealth. Well, that’s about to change. Sunoco Logistics recently went public with news they will be building a pipeline that spans from Southwest Pennsylvania to Philadelphia’s Marcus Hook Industrial Complex. The Mariner East project is a 300 mile pipeline project that will make use of existing pipeline infrastructure and route valuable natural gas liquids like ethane, propane, and butane from Marcellus Shale regions in Pennsylvania, West Virginia and Ohio across Pennsylvania into the Marcus Hook Industrial Complex. Sunoco Logistics purchased the former Marcus Hook refinery property in 2012 after it had closed operations the year before. Now, the company plans to repurpose the refinery into a major industrial complex, with the feedstock of natural gas liquids provided by the Mariner East project. This will help make the region
more attractive for manufacturing companies looking to take advantage of the cheap American energy shale development has provided. Once completed, the $2.5 billion project is expected to transport 345,000 barrels of natural gas liquids per day to the Marcus Hook Industrial Complex. This will more than double the amount of resources coming into the region before the refinery was closed. Once built, the pipeline project will make the Southeast Region of Pennsylvania more competitive with the gulf coast. Sunoco Logistics doesn’t plan to stop there, though. Once the project is completed the company plans on actively developing a natural gas liquids manufacturing complex at an 800-acre Marcus Hook Property, including propane dehydrogenation to manufacture propylene. Propylene is a type of plastic used in the manufacturing of items we use daily. The Sunoco Logistics project is the first step to making Philadelphia an energy hub, but more importantly it continues to strengthen the American economy by putting more Americans back to work and using domestically produced energy to manufacture things we need on a daily basis. Joseph Massaro is a Spokesman for Energy In Depth and Publisher of ShaleGasNOW.com.
• • • • • • • • • •
Experts in Natural Gas
10156579
Joe Massaro – Energy In Depth his month marked the 10-year anniversary of the first well ever drilled into the Marcellus Shale. Today, with over 8,000 Marcellus wells developed in Pennsylvania, the state now produces over 16 billion cubic feet of natural gas per day. This development has created jobs, strengthened Pennsylvania’s economy and has helped put the United States back on the road to recovery. To commemorate the success of the Marcellus Shale in Washington County, the Chamber of Commerce held a gala where local politicians and industry representatives were invited to speak. A couple of the more widely known speakers included Nissa Darbonne, Editor-at-Large of Oil and Gas Investor and the author of The American Shales, and Ezra Levant, TV host and author of a book on hydraulic fracturing called Groundswell. Ezra is well known in the region for his segment on hydraulic fracturing in the Marcellus Shale, which aired on The Source, a Canadian news program, back in July. The MC for evening was the President of the Washington County Chamber of Commerce, Jeff Kotula. He highlighted the change in the energy conversation that’s taken place over the last 10 years because of domestic shale development. “Moreover, the deployment of directional drilling and fracturing techniques in the Marcellus as well as shale formations in places like North Dakota and Texas has literally changed America’s conversation about energy,” Mr. Kotula stated. “Where once we spoke in worried terms about growing dependence on unstable areas of the world for our energy, we now talk about energy independence and exporting oil and gas to global markets because America will soon be the world’s largest oil and gas producing country.” Nissa Darbonne also highlighted the fact that 20 years ago, when developing the Marcellus Shale wasn’t even an idea, our energy future looked bleak. The United States was building liquefied natural gas (LNG) terminals on our coasts to import resources from other parts of the world. “Think of coal bed methane wells, and those were pretty much all we had hope for in the 1990s in terms of a natural gas future in this country,” she said. “And you had to drill about 10,000 of those to make the equivalent of one Marcellus Shale well.” Our resources seemed to be dwindling, and then good old American innovation came into play. New technology and more efficient operations have contributed to the Marcellus Shale’s incredible production, allowing us to produce the most domestic energy this country has ever seen.
T
David Spigelmyer, President of the Marcellus Shale Coalition, touched on some of the vast benefits the continued development of the Marcellus Shale is bringing to consumers: “It wasn’t until 2008 that we really kicked off this development and your natural gas rates in 2008 were nearly $20 at the burner tip, this year they’ll be less than half of that in your home. It’s a real celebration to not only burn a product at half the price in 2008 but to look at the reductions we’re seeing at the pumped as well.” Consumer benefits of shale development aren’t just being felt near the well head but rippling across the United States in the form of decreased air pollution in areas utilizing our abundance of natural gas, and affordable energy. “It’s because of our energy prices that we’re far more competitive in the world today and we will be more competitive in the world tomorrow,” Spigelmyer notes. “I also want to point out that it’s abundant, it’s clean and it’s ours. …It’s a wonderful opportunity for us to really make some progress towards lessening our dependence on foreign sources of oil and as Congressman Murphy said, to trade in that helmet abroad for a hard hat home is an amazing thing.” Increased production of oil and gas here on American soil has decreased our reliance on resources from more volatile parts of the world. Author Ezra Levant addressed these energy security issues in his discussion on “conflict oil”, and how developing our own domestic resources will lead us to a future free of dependence on foreign countries. “There are two possible futures here. One is a future run by enemies of freedom, I call it conflict oil, conflict gas and live like North Korea. Energy poverty is what it’s called. That’s one possible future. The other is a future that you live everyday here in Washington County. Cheap, plentiful, clean; so cheap that industries are re-shoring and coming back from high energy costs jurisdictions, back to America,” Ezra stated. “And where we’re finally free of OPEC and Russia. I’m truly honored to be here in the heart of fracking and I love telling your story.” After listening to the speakers the theme for the night was clear: transformation. The natural gas and oil industry has not only transformed itself through better practices and innovation, but it has transformed the United States into an energy super power. That’s something we can all celebrate as we commemorate the well that started it all. Joseph Massaro is a Spokesman for Energy In Depth and Publisher of ShaleGasNOW.com.
Anyone can sell you a liner.
new pIg Energy delivers
secondary
containment. New Pig Energy is more than just a liner company. We’re a team of secondary containment experts who understand the challenges you’re facing. And we can help you avoid some common pitfalls that waste your time and money. Trust New Pig to help you do it right the first time:
Reg Expertise and Best Practices — We’ll help you meet state and federal regulations while reducing the risk of surface spill contamination
Quality Secondary Containment — Our patentpending liner is 100% American-made specifically for drilling and hydraulic fracturing operations
Complete Service and Support — On-site installer training, site assessments and post-install follow-ups to ensure your satisfaction One-Call, No-Hassle Solutions — Installs, patch crews, add-ons & cleanup; let us manage it all for you
CALL NOW to start working with the experts:
855-PIG-LINER (855-744-5463)
QJHMJOFS!OFXQJHFOFSHZ DPN r OFXQJHFOFSHZ DPN
Secondary Containment from the Leak & Spill Experts.
TM
10106320
DECEMBER 2014 • A FREE MONTHLY PUBLICATION