Marcellus / Utica Natural Gas & Fracking

Posted February 16, 201015 yr

In the following article about the major steel mill expansion in Youngstown.....

http://www.cleveland.com/business/index.ssf/2010/02/youngstown_area_to_get_350_mor.html

it is reported that:

Vallourec said it chose Youngtown, in part, because its in the middle of one of the largest shale formations in the world, called the Marcellus basin, and puts the company in close proximity to its potential customers. The deposit of brittle sedimentary rock, which contains a huge source of untapped natural gas, follows the path of the Appalachian mountains across New York, western Pennylvania, eastern Ohio, down to Maryland and West Virginia.

In the past, it wasn't feasible to extract gas from shale. But, that's changing. The company says that there's a revolution going on in the U.S. natural gas market.

"Thanks to new technologies lowering extraction costs (shale) has become a sustainable source of gas supply," the company said in a statement.

Consider the long-term ramifications of this. If area leaders play their cards right, Youngstown could easily become the center of the nation's alternative fuels industry for many decades. That could include more than just the manufacture of steel pipe. It could also involve:

++ metal-making for building and maintaining refineries nationwide;

++ scrap metal receiving and recycling facilities (since steel mills like the expanding V&M complex process scrap steel in electric arc furnaces nowadays, not blast furnaces of old that required raw materials like iron ore and dolomite or limestone);

++ manufacture of drilling platforms, compressors and components (see: Dearing Compressor & Pump Co. Youngstown!);

++ placement of new natural gas refineries in the Mahoning Valley;

++ drilling contractor offices and servicing facilities;

++ natural gas sales and distribution offices;

++ construction of pipelines and transportation facilities;

++ research company offices;

++ Youngstown State University research and support;

++ plus all the spin-off jobs (restaurants, hotels, stores) and much more!

This is not over-exuberance. Consider how important natural gas will be as peak oil continues to force us to look for alternatives. Natural gas is an obvious one, and one of the world's largest deposits is far beneath our feet.

With today's announcement by V&M Star Steel, it puts the bullseye for the center of this new-growth economy right on Youngstown. But only if the city grabs it for itself.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

February 16, 201015 yr

And to show you I've not been inhaling natural gas fumes, comes this old post......

http://cleveburghdiaspora.blogspot.com/2009/08/breakfast-briefing-eqt-and-natural-gas.html

Wednesday, August 26, 2009

Breakfast Briefing: EQT And The Natural Gas Industry in Western Pennsylvania: A Proud Past. A Bright Future.

On the heels of yesterday's post, some of you might want to attend this event:

Please join Murry Gerber, Chairman and Chief Executive Officer of EQT, as he discusses how a rich history and new technologies have recently made it economically feasible to recover natural gas from the Marcellus formation; a resource that has the potential to stimulate the biggest economic boom since coal and oil availability sparked the Pennsylvania industrial revolution. As the largest natural gas producer in the Appalachian Basin and the 14th largest in the nation, EQT is well positioned to play a major role in the development of this rich local resource. It owns the right to develop more than 400,000 acres of Marcellus reserves and has the technology necessary to extract Marcellus gas economically and with a small environmental footprint. Development of the Marcellus is in its infancy, but if Pennsylvania provides a friendly business climate which promotes development of this resource the potential benefits are unlimited.

And this.......

http://burghdiaspora.blogspot.com/2009/07/marcellus-shale-energy-boom.html

Lou D'Amico of the Pennsylvania Oil and Gas Association talked about the economic impact of the gas drilling, and the Marcellus Shale Committee provided printed information on jobs to the crowd.

Mr. D'Amico said eventually there will be new jobs and opportunities for Pennsylvania including a full range of professions and skilled trades. In 2008 a committee was commissioned to conduct a study on the impact. Currently in the natural gas industry, $4.5 billion directly results from the industry with a total impact of $7.1 billion with more than 10,000 direct jobs.

To project the economic impact of the Marcellus Shale, the committee looked at the impact of the Barnett Shale in Texas, which covers only 5,000 square miles as opposed to the 95,000 square miles of the Marcellus Shale. In Texas, 55,000 direct jobs were created with a $10 billion economic output totaling 5 percent of the economic output.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

February 16, 201015 yr

KJP- are Youngstown's leaders aware of this? I would hope that Youngstown is able to take advantage of this.

February 16, 201015 yr

Yes, but they may not be thinking of the implications of this in terms of the additional projected benefits. Fortunately, I work with a number of people with the city and chamber on passenger rail projects, and will be communicating the opportunities for these potential spin-off benefits...

Here is an article that discusses more about the Macellus Basin:

V&M Exec: 'My Knees Are Shaking'

http://business-journal.com/clients/business-journal/vm-exec-my-knees-are-shaking-p15715.htm?twindow=Default&smenu=1&mad=No

To see major gas pipelines in the vicinity of Youngstown and Pittsburgh, go to:

http://pittsburghlive.com/x/pittsburghtrib/business/photo_153463.html?TB_iframe=true&height=460&width=720

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

February 16, 201015 yr

I've been reading a lot about the Marcellus formation. If production from this vast field could be developed to produce as much as 10 percent of America's natural gas needs per year, it could continue to do so for 140 years. That's how big this field is.

And just as the interesting, the most shallow formations start under Lake Erie and extend south-southwesterly through eastern Ohio. The formations get deeper the farther east you go until about mid-Pennsyvania where the layer of Marcellus shale is 8,000 to 10,000 feet below the surface. The downside is that the gas is not under pressure and will have to be forced out, possibly using water.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

February 17, 201015 yr

I hope I'm not the only one here who is interested in this! But others are interested.......

http://online.wsj.com/article/SB10001424052748704804204575069542803027352.html?mod=WSJ_business_whatsNews

FEBRUARY 16, 2010, 7:59 P.M. ET.

Mitsui Bets on U.S. Shale-Gas Project

Investment of $1.4 Billion in Pennsylvania Field Comes Amid Production Boom

By KENNETH MCCALLUM And JASON WOMACK

Mitsui & Co. said Tuesday it will invest about $1.4 billion to take part in a shale-gas development project in Pennsylvania, in hopes of taking advantage of the growing U.S. market for such gas.

Mitsui, which has businesses ranging from natural resources to chemicals to food, is a big player in the liquefied natural-gas, or LNG, market. Its most profitable business division in the fiscal third quarter ended December was energy, which includes its LNG operations. But in response to increased U.S. production of shale gas—deposits of natural gas trapped in shale-rock formations—the Japanese trading company decided to make a big bet in that market, too.

Mitsui's move into the Marcellus Shale, a rapidly developing natural-gas field in Pennsylvania, New York and other states, underscores the growing interest foreign companies have in gaining a foothold in shale-gas production. Chesapeake Energy Corp. has struck a deal with Norwegian oil and natural-gas producer Statoil ASA to develop the Marcellus and formed a joint venture with French energy company Total SA to develop the Barnett Shale, a natural-gas-rich formation in Texas.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

February 23, 201015 yr

Cross-posted from the Youngstown steel thread. Yet another 140 jobs possible -- again thanks to the Marcellus Basis gas boom. Sometimes the benefits from the Marcellus Basin will be steel-related, sometimes not. Brookfield is actually closer to Sharon, near the intersection of routes 82 and 7.....

$872K tax credit OK’d to lure steel-tube maker to Brookfield

Published: Tue, February 23, 2010 @ 12:06 a.m.By ED RUNYAN

VINDICATOR STAFF WRITER

BROOKFIELD — A tax credit worth $872,000 over nine years has been approved to encourage Ultra Premium Oilfield Services of Odessa, Texas, to invest $10 million in a vacant factory in Brookfield that would employ 120 people.

The Ohio Tax Credit Authority approved the Job Creation Tax Credit on Monday in Columbus. If the project moves forward, Ultra Premium will make tubular steel products used in oil and natural-gas exploration there, the Ohio Department of Development says. The tax credit requires Ultra Premium to maintain operations for 11 years.

The Youngstown/Warren Regional Chamber, which worked on the project, said it expects an announcement on whether the project will move forward “in the very near future.”

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

February 23, 201015 yr

Great job, Youngstown!

March 6, 201015 yr

I missed this in all the news coverage about the V&M expansion....

http://ohiostate.rivals.com/showmsg.asp?fid=1672&tid=131551253&mid=131551253&sid=917&style=2

Published: Tue, February 16, 2010 @ 12:00 a.m.

Valley leaders hail $650M project as largest in decades

By DON SHILLING

VINDICATOR BUSINESS EDITOR

.......Lindgren said V&M chose to expand in Youngstown because of its proximity to the Marcellus Shale, its work force and strong local partnerships.

Local officials said the project will draw other manufacturers to the area.

Good said chamber officials are trying to recruit other companies in the drilling industry to locate plants in the area as they prepare for projects in the Marcellus Shale.

V&M also will need more suppliers as it expands its production, he said.

Bozanich said he expects other pipe operations to open in the area. These companies would buy pipe from V&M and perform finishing operations to prepare it for other uses, he said.

Bozanich noted the city already has announced plans to tear down the former Youngstown Sheet & Tube Co. headquarters in the area and will be seeking funds to tear down abandoned houses.

Now that V&M has committed to its project, more governmental funding sources will open up to redevelop the area, he said.

“The dynamics of that area are going to change,” he said.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

March 20, 201015 yr

Video of Marcellus hydro-fracturing gas well site....

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

April 1, 201015 yr

Bring this business to Youngstown, Ohio!!!

Railroads booming with Marcellus Shale business

Associated Press - March 31, 2010 12:05 PM ET

WELLSBORO, Pa. (AP) - The need to transport materials for the rapidly increasing number of Marcellus Shale natural gas well drilling sites in Pennsylvania is bringing big business to railroads.

Reading & Northern Railroad Co. spent $100,000 to transform an outdated and barely used terminal near Wilkes-Barre.

Now Pittston Yard is almost always busy. Reading & Northern president Warren Michel says he expects more investment in track and material-handling facilities and equipment on the line.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

April 4, 201015 yr

I wondered what that skeleton of steel was between I-680 and Poland Avenue. See the pics at the website...

Dearing Compressor Expands Thanks to Marcellus Shale

Last Update: 3/30 10:05 pm

Dearing Compressor and Pump, which packages natural gas compressors, opened in 1945.

Thanks to the Marcellus Shale, a natural gas deposit four hours away in Pennsylvania, business continues to grow 65 years later. So much so that officials at Dearing started building a new production facility.

The nearly 50,000-square-foot expansion is by no means the first one for Dearing. Its actually the third in a 10 year period.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

April 4, 201015 yr

Yet another one......

Cutting Edge: Rust Belt Chic?, Youngstown: Conveniently Located ... Drill, baby, drill and more

Sunday, April 04, 2010

Compiled by Bill Toland, Pittsburgh Post-Gazette

.....

Youngstown: Conveniently Located ...

... if your idea of convenience is being smack between Cleveland and Pittsburgh. "I Will Shout Youngstown" (shoutyoungstown.blogspot.com) notices that the Youngstown/Warren Regional Chamber is advertising in The Wall Street Journal, promoting Youngstown as the "epicenter" of the so-called Tech Belt that runs from Pittsburgh to Cleveland, and right on the gateway to the Marcellus Shale field.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

April 12, 201015 yr

Dearing Compressor Expands Thanks to Marcellus Shale

Last Update: 3/30 10:05 pm

Dearing Compressor and Pump, which packages natural gas compressors, opened in 1945.

Thanks to the Marcellus Shale, a natural gas deposit four hours away in Pennsylvania, business continues to grow 65 years later....

This is a good pull-out piece to read from the March 2010 Youngstown Business Journal...

http://www.dearingcomp.com/downloads/article_ybj_03-2010.pdf

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

April 12, 201015 yr

And from last week, another view.....

Sunday, April 04, 2010

Marcellus Shale Bust

I'm fascinated with the Marcellus Play and how it might impact inmigration to the SW Pennsylvania backwater (as well as the rest of Northern Appalachia). I've had visions of Pittsburgh as the next Calgary, but I'm busy reining in that enthusiasm. Via the energy blog at the Houston Chronicle, the gas rush is no big deal:

http://burghdiaspora.blogspot.com/2010/04/marcellus-shale-bust.html

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

April 13, 201015 yr

Cross-posted from the "Peak Oil" thread in the transportation section...

I'd like discuss the refining of natural gas into synthetic diesel fuel. Considering the proximity of the Marcellus Shale and the assets of the Mahoning Valley (large tracts of vacant industrial land next to the Mahoning River and major railroads), I think attracting a synthetic diesel fuel refinery to Youngstown makes tremendous sense. To that end, we should introduce the Mahoning Valley to a company called Syntroleum (see: http://www.syntroleum.com/main.aspx).

First, for a primer on synthetic diesel fuel (especially the Fischer-Tropsch process), see:

http://en.wikipedia.org/wiki/Fischer-Tropsch_process

http://www.afdc.energy.gov/afdc/pdfs/epa_fischer.pdf

I've read some pieces that there are only three synthetic diesel fuel plants in the world -- all near major natural gas fields -- yet none are in the U.S. I've also read some articles by writers who speculated that the U.S. oil majors are trying to keep them out. If true, perhaps this may be changing considering that conventional oil refining capacity in the U.S. is declining as older refineries are being shuttered. I would also like to learn more about the economics of synthetic diesel fuel -- do current prices of natural gas and conventional diesel fuel permit it now? What will the coming impacts of peak oil mean for the future of synthetic diesel?

Why does the Mahoning Valley make sense for such a refinery location?

Natural gas is the best fossil fuel feedstock from which to produce synthetic diesel fuel as it is cleaner, low-sulfur, easily transportable and efficient at lower temperatures than coal or biofuel. To refine natural gas into synthetic diesel fuel requires cobalt to catalyze the fuel through a reactor. Although not radioactive, the reaction generates a great deal of heat which is typically cooled by water. A refinery capable of producing a meaningful amount of synthetic diesel fuel could require hundreds of acres of industrial-zoned land. Shipment of the finished product would need to be via low-cost means, either waterway or railroad.

So, for a Fischer-Tropsch refinery to process low-sulfur synthetic diesel fuel, the site appears to need:

++ a large supply of natural gas (ie: Marcellus Shale, the third-largest known natural gas field in the world);

++ cobalt for catalyzation (the nearest large-production mines are in southern Ontario: http://upload.wikimedia.org/wikipedia/en/9/94/2005cobalt_%28mined%29.PNG);

++ a steady supply of water for reactor coolant (ie: the Mahoning River);

++ large and open swaths of industrial-zoned land (vacated steel mill sites in the valley are sufficiently large, especially the 200-acre former YS&T Campbell Works site);

++ access to waterways and railways (two Class I railroads and one regional railroad serve the Mahoning Valley, while navigable waterways are only 50 miles away by rail, pipeline or truck).

The Mahoning Valley, especially one or more of its vacated steel mill sites, would be an ideal place to build a synthetic diesel refinery!

Possible economic impact to the region

For comparison, this project could be similar to a refinery now being built to produce synthetic jet fuel for the airlines and the military in Natchez, Louisiana. Rentech Corp's 450-acre facility represents a $4.5 billion investment to produce 250 million gallons or 25,000 barrels of synthetic jet fuel per year using the Fischer-Tropsch process.

The Natchez Project is expected to create 2,100 direct jobs and 3,400 indirect jobs during the projects construction phase. Once operational, the facility is expected to create over 400 high-paying direct jobs and over 3,200 indirect jobs, according to a study (see: http://www.natchezdemocrat.com/news/2010/mar/14/rentechs-spending-would-trickle-down/). A synthetic diesel refinery would probably be less than half as large as Rentech's -- yet still a significant economic presence in the valley.

Also, note that major railroad and trucking terminals are located at or near existing diesel fuel refineries -- not only because of shipment opportunities, but because it's the lowest-cost place for trains and trucks to be fueled. Thus, spin-off jobs could result from attracting the refinery here, including materials needed to construct the refinery.

There are many question still unanswered, including the economics of such a refinery, spatial requirements, environmental issues, and more. But I think it is a very intriguing possibility for the Mahoning Valley.

What do you think?

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

April 23, 201015 yr

From the Doomerish site "Decline of the Empire"...

Published Apr 19 2010 by Decline of the Empire, Archived Apr 19 2010

A Miracle In the Marcellus Shale?

by Dave Cohen

It's fair to say that lot of people, from shale gas operators to Pennsylvania state revenue collectors, see $$$ every time they think about the Marcellus shale. Only recalcitrant environmentalists worried about polluted drinking water do not salivate at the prospect that many years of U.S. gas supply will come from the Marcellus. Today I will not deal with the environmental issues. Instead, I want to examine the view that resources in the Marcellus are a big part of the shale gas cure-all for America's energy problems.

BTW: want to see how big the Marcellus field is compared to other shale natural gas fields? Looky here...

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

May 10, 201015 yr

Innovation, Volume Draw TMK IPSCO to U.S.

May 10, 2010 Updated 7:02 a.m.

By George Nelson

BROOKFIELD, Ohio -- Two factors drew TMK IPSCO from Russia to the United States, says chairman Piotr Galitzine. One is that the oil patch in the United States is "the most innovative place to be," he remarks. The other is more drilling is going on here -- one and a half times as measured in miles -- than in the rest of the world combined.

The company, now with 21 factories around the globe, was started only nine years ago, said Galitzine, who lives in Chicago, where the U.S. unit of the company is based. It started with four factories in Russia before expanding into Romania when that became possible, then into Kazakhstan before moving into the United States.

The majority of the U.S. drilling is for natural gas, he Galitzine. "Nature didn't give the USA that much oil, but it more than made up for it on the natural gas side, especially as we now get more and more information about these gas shales," he explained.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

May 16, 201015 yr

New steel jobs touted

Published: Sat, May 8, 2010 @ 12:10 a.m.By GRACE WYLER

[email protected]

...TMK IPSCO, the world’s largest pipe manufacturer, chose the location of the new plant because of its proximity to the Marcellus Shale, Galitzine said.

The shale is an ancient — and largely untapped — natural gas formation under eastern Ohio and much of Pennsylvania, West Virginia and New York. New technology and drilling techniques have led to an explosion of development of the Marcellus Shale.

“The Marcellus Shale is one of America’s national treasures,” Galitzine said. “We are at the beginning of this development.”

The development of the Marcellus Shale is in its early stages and will continue to grow, Galitzine said.

“This [plant] will help develop the Marcellus Shale into one of the biggest natural gas sources in the world,” he said. “These jobs will be here as long as the Marcellus Shale is here.”

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

May 26, 201015 yr

The study did not look at Ohio impacts, but the impacts on Ohio are already substantial (ie: V&M, TMK-IPSCO, Dearing Compressor, etc just in Greater Youngstown)...

Shale Could Fuel 212,000 New Jobs in Pa.

May 26, 2010 7:14 a.m.

HARRISBURG, Pa. – The natural gas repository found in Pennsylvania’s portion of the Marcellus Shale has the potential to create 212,000 new jobs over the next 10 years on top of the thousands already being generated all across the Commonwealth, estimates a study released Tuesday by researchers at Penn State University.

Over just the next 18 months, these activities will create more than $1.8 billion in tax revenue for Pennsylvania and local government entities, the study finds.

"At a time when more than 500,000 people in Pennsylvania are out of work, the release of this updated report from Penn State confirms the critical role that responsible energy development in the commonwealth can play in substantially, perhaps even permanently, reversing that trend,” said Kathryn Klaber, president and executive director of the Marcellus Shale Coalition.

READ MORE AT:

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

May 26, 201015 yr

Where?

Here? http://business-journal.com/clients/business-journal/shale-could-fuel-new-jobs-in-pa-p16569.htm?twindow=Default&smenu=1&mad=No

(I get headlines from the Business Journal at home.)

May 27, 201015 yr

Yep, that's the link. I forgot to add it.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

June 2, 201015 yr

Another huge player enters the race....

Shell Taps Shale With $4.7 Billion East Resources Buy

May 28, 2010, 11:18 AM EDT

By Fred Pals

May 28 (Bloomberg) -- Royal Dutch Shell Plc, Europe’s largest energy producer, agreed to buy most of closely held East Resources Inc. for $4.7 billion in cash, expanding its holdings of U.S. shale gas deposits.

As part of the deal, Shell will obtain new positions in “high potential” U.S. shale gas acreage, in the Marcellus and Eagle Ford plays, according to a statement today. The sale is expected to be completed in two phases starting from the summer.

Shell is catching up with Exxon Mobil Corp. and BP Plc in snapping up unconventional gas reserves in anticipation prices for the cleaner-burning fuel will recover as governments curb carbon dioxide emissions. The Marcellus Shale, which stretches into New York, may hold 262 trillion cubic feet of recoverable gas, making it the biggest known U.S. deposit of the heating and power-plant fuel, the Energy Department estimates.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

June 2, 201015 yr

And consider these implications.....

What’s Steel Pipe Got To Do With Real Estate?

April 18, 2010 by Jack Pearce

...The Marcellus is also the closest natural gas deposit to the high demand markets of New York, New Jersey and New England, and could easily service much of the central portion of the Unites States as well. How is the gas going to be delivered from the well heads of the Marcellus to these markets? PIPES, FITTINGS, CONNECTORS, PUMPS – and lots of them, and V&M Star with its $650 Million expansion is just one of several local companies that stands to prosper as a supplier to oil and gas exploration and extraction in the Marcellus fields:

• Pipe manufacturer TMK IPSCO, parent company of Ultra Premium Oilfield Services, last February signed a lease for the former Sharon Tube facility off Collar Price Road in Brookfield, and is now about ready begin production of steel-tube connections. TMK IPSCO is the parent company of Koppel Tubular Corp., which has operations in nearby Pennsylvania’s Beaver County, Koppel, and Ambridge.

• Wheatland Tube Co.’s Howland factory employs 140 hourly and salaried workers to make electric welded pipe used in the oil and gas industry and also operates a plant in Niles.

• Dearing Compressor & Pump Co., located on Simon Rd. in Youngstown and makes pumping equipment for the drilling process, is building a 50,000-square-foot expansion to its existing facility and could add 20 to 25 more workers to its 90-worker staff.

• Severstal Warren steel mill, RTI International Metals Inc. and Patriot Metals in North Jackson, can also be major players in the oil and gas industry boom about to hit this Valley.

If the Marcellus Shale holds up to the optimistic expectations of some natural gas experts, Pennsylvania, Ohio, New York and West Virginia could see an enormous boost in income, sustainable for decades.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

June 6, 201015 yr

Buried treasure

Published: Sun, June 6, 2010 @ 12:00 a.m.

By GRACE WYLER

[email protected]

111In the past two years, energy producers have flocked to the Marcellus shale formation, a 400-million-year-old natural-gas region that spans 54,000 square miles across much of Pennsylvania, Ohio, New York and West Virginia. The shale is named for Marcellus, N.Y., a town just west of Syracuse where a distinct outcropping of the shale rock can be seen.

Maybe this is old news to you, KJP, but I'm not following this closely, so thought it was interesting.

Drilling is not likely to take place in the Mahoning Valley because the natural gas in the western part of the Marcellus shale requires more refinement. However, the area can benefit from the supply-chain network emerging to support the shale’s exploration.

http://www.vindy.com/news/2010/jun/06/by-grace-wyler/

June 21, 201014 yr

A version of that article was picked up yesterday by the Columbus Dispatch....

An energy about Ohio shale

Investors move into Mahoning Valley amid push for natural-gas exploration

Saturday, June 19, 2010 02:49 AM

By Grace Wyler

YOUNGSTOWN VINDICATOR

The pursuit of energy has led energy producers and now investors to Ohio.

In the past two years, energy producers have flocked to the Marcellus shale formation, a 400million-year-old natural-gas region that spans 54,000 square miles across much of Ohio, Pennsylvania, West Virginia and New York. The shale is named for Marcellus, N.Y., a town west of Syracuse where a distinct outcropping of the shale rock can be seen.

Most of the drilling has been in Pennsylvania, but the Mahoning Valley in northeastern Ohio already has started to reap the benefits of the supply chain network that is cropping up to support the emerging Marcellus shale energy industry.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

June 25, 201014 yr

Keep workin' it fellas!

Valley Is 'Gateway' to Marcellus Shale, Chamber Official Tells Pipe Industry

June 25, 2010 6:30 a.m.

By Dan O'Brien

PITTSBURGH -- Opportunities for new business and economic growth related to natural gas exploration in the Marcellus Shale abound, and the Mahoning Valley could be the western "gateway" to this prosperity, an executive from the Youngstown/Warren Regional Chamber told some 200 pipe and tube industry leaders Thursday (CLICK TO WATCH VIDEO).

"We like to consider ourselves as the staging area for those companies as they move their product, as they move their manufacturing assets, as they move their goods that are needed for extraction of the Marcellus Shale," said Eric Planey, the chamber's director of international business attraction, during a luncheon Thursday at the Omni William Penn Hotel.

The Marcellus Shale is a massive repository of natural gas buried deep in a layer of rock beneath Pennsylvania, New York, portions of eastern Ohio and northern West Virginia. New drilling technology has allowed energy companies to tap into this reserve more cost effectively, resulting in what specialists say is a "game changer" for the region's economy.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

June 26, 201014 yr

Industry leaders meet to discuss shale drilling

Published: Fri, June 25, 2010 @ 12:00 a.m.

By GRACE WYLER

[email protected]

pittsburgh

More than 200 representatives from the world’s leading steel and natural-gas companies gathered here for a conference on new business opportunities in the growing domestic shale drilling industry.

Pennsylvania, which sits atop the Marcellus Shale, has emerged as the new epicenter of onshore natural-gas drilling, industry experts said Thursday.

The Marcellus is the second-largest shale formation in the world, spanning 54,000 square feet, almost a mile below the surface.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

June 26, 201014 yr

And if you think I'm posting a lot of articles about the Marcellus Shale, you may surprised to learn I'm pretty pretty selective. In addition to producing natural gas, the Marcellus is also producing lots of news. This website gives snippets of articles on the Marcellus....

http://schema-root.org/science/geology/stratigraphy/formations/shales/marcellus/

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

June 29, 201014 yr

The rush is on the for the Marcellus Shale, starting at 2:30.....

http://www.businessjournaldailybuzz.com/

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

August 23, 201014 yr

Want a job in a growing field??

Eastern Gateway to offer training for Marcellus Shale

Published: Mon, August 23, 2010 @ 12:00 a.m.

By Denise Dick

Staff report

Steubenville - For the first time since the Marcellus Shale natural-gas industry began to boom, workers in the multistate Marcellus Shale footprint will have the opportunity to receive standardized training for employment around the energy resource.

Eastern Gateway Community College is among the training providers.

Marcellus ShaleNET, a comprehensive recruitment, training, placement and retention strategy for jobs in the Marcellus Shale gas industry is launching, thanks to a $4.9 million community-based job training grant from the U.S. Department of Labor, Employment and Training Administration.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

April 13, 201114 yr

Wednesday, April 13, 2011 4:15 AM EDT

Industry slams study saying Shale gas not planet-friendly

By IB Times Staff Reporter

The gas industry has slammed a new study that concludes that natural gas extracted from shale formations has a greater greenhouse gas footprint - in the form of methane emissions - than conventional gas, oil and coal over a 20 year period.

Shale gas, which has become an increasingly important source of natural gas in the United States over the past decade, refers to natural gas that is trapped within shale formations. Shales are fine-grained sedimentary rocks that can be rich sources of petroleum and natural gas.

Robert Howarth and colleagues from Cornell University in New York evaluated the greenhouse gas footprint of natural gas, obtained by high-volume hydraulic fracturing of shale formations, focusing on methane emissions.

Link to Cornell Shale Study Report: http://www.energyindepth.org/2011/04/five-things-to-know-about-the-cornell-shale-study/

April 18, 201114 yr

$6.8 Million for Freight Rail Improvements in Pennsylvania Will Create Jobs and Economic Development

--------------------------------------------------------------------------------

U.S.Department of Transportation

Office of Public Affairs

Washington, D.C.

www.dot.gov/affairs/briefing.htm

News

--------------------------------------------------------------------------------

FRA 08-11

Friday, April 15, 2011

Contact: Rob Kulat

Tel.: (202) 493-6024

Today, U.S. Transportation Secretary Ray LaHood announced a $6.8 million grant to upgrade freight rail service in four central Pennsylvania counties supporting the Marcellus Shale natural gas deposits. Thanks to these projects, one of the world’s largest natural gas deposits will receive the rail transportation improvements needed to meet growing demand.

“Projects like this advance President Obama’s vision to create jobs, support U.S. energy sources and reinvigorate the economy,” said Secretary LaHood. “Building an innovative, transportation network with world-class railways will help local businesses compete now and in the future.”

The project – which includes 200 miles of track improvements and bridge rehabilitation – is expected to create more than 300 construction jobs in Pennsylvania. . These upgrades will expand the capacity, efficiency and safety of Pennsylvania’s short line rail network in Lycoming, Centre, Blair and Northumberland counties.

The grant, a part of the U.S. Department of Transportation’s TIGER II (Transportation Investment Generating Economic Recovery) program, will be matched by $4.6 million from the Susquehanna Economic Development Association – Council of Governments Joint Rail Authority.

Under the U.S. Department of Transportation’s popular TIGER II program, $600 million has been awarded to 42 capital construction projects and 33 planning projects in 40 states for crucial upgrades to highways, bridges, transit systems, rail lines, bicycle and pedestrian paths and ports. TIGER II grants were awarded to projects that promote innovative, multimodal transportation, increase energy efficiency and provide significant economic benefits to an entire metropolitan area, region or the nation.

http://www.fra.dot.gov/roa/press_releases/fp_FRA08-11.shtml

####

May 11, 201114 yr

From there to here

Warren waste treatment facility holds grand opening

May 11, 2011

By VIRGINIA SHANK - reporter ([email protected]) , Tribune Chronicle | TribToday.com

WARREN - Mayor Michael J. O'Brien said the opening of the first facility in Ohio to treat wastewater from Marcellus Shale drilling has the potential to bring new jobs to the Mahoning Valley for the next two or three generations - and likely will generate additional revenue.

Patriot Water Treatment, which has been working in partnership with the city since May 2009, held an official grand opening at its Warren facility on Tuesday.

O'Brien, who was among a group city officials and Patriot representatives at the ceremony, said growth opportunities could lead to between 400 and 600 new jobs in the next 12 to 16 months.

The facility, which opened in the past few months, currently has 15 employees.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

May 17, 201114 yr

Ohio EPA order

Cities can't treat brine from new gas wells

Tuesday, May 17, 2011 03:06 AM

By Spencer Hunt

THE COLUMBUS DISPATCH

Ohio cities hoping to profit from natural gas drilling won't be able to cash in after all.

Ohio Environmental Protection Agency officials announced yesterday that cities can't treat millions of gallons of salty wastewater from new natural gas wells in their sewage plants and dump it into streams.

The agency says it is concerned that the wastewater, called brine, poses a pollution risk.

May 17, 201114 yr

So it sounds like private operators can, such as Patriot Water Treatment, noted in the prior posting?

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

May 17, 201114 yr

It seems intuitive to me that some of the methane is going to be liberated by fracking and end up in the atmosphere. It seems likely that the fracking is going to liberate radon, which is going to travel upwards and end up in our basements.

We have seen cases where homeowners' water wells were destroyed by fracking. In the movie Gasland, homeowners demonstrate that they can light the methane coming out of their water faucets. The gas companies agree to provide the homeowners with water for as long as they live there, however that means that their land is useless for future development and increased agriculture because you cannot drill any more wells in the area. So, I expect hapless counties like Clinton or Lycoming will be even more depressed after a half a century of fracking.

The fracking operation uses undocumented compounds (the ingredients have not been released to the public). Farmers have seen their livestock lose their hair because of what they ingested.

Drillers don't really have a good plan for disposing of waste liquids (see above). New York has severely limited fracking in the Hudson River watershed, because they expect that the waste will be spilled, accidentally or otherwise, and end up in the surface water and in the Hudson River, New York City's drinking water supply.

Where is the accounting for all of the gasoline that is going to be consumed trucking waste liquid?

Who is going to pay to fix the roads that are not used to heavy trucking? For that matter, the new road development for all the new well sites is going to wash sediment into the streams and ruin fish spawning areas. The roads and pads are going to be built right over seasonal wetlands and the habitats of invertebrates, salamanders and other amphibians will be destroyed forever. When they are done, Pennsylvania will look like a pounded out patch of dirt, devoid of the wilderness and wildlife that makes it so special. Some of the streams in Pennsylvania are still ruined by acid run off from old mines. We don't need to destroy the rest of them with reckless gas development.

A measure of caution is needed.

June 20, 201113 yr

Pretty bold statement in the lede (cross-posted in the Cleveland general business thread)...

Manufacturers anticipate boost from natural gas

Extraction process requires sand, industrial components produced by NE Ohio companies

By DAN SHINGLER

4:30 am, June 20, 2011

If some experts are right, manufacturing in Northeast Ohio, and much of Ohio and Pennsylvania, is about to receive its biggest boost since the popularization of the automobile.

“From a manufacturing perspective, the potential is huge,” said Jim Samuel, a Columbus-based economic development consultant for utilities and others with a big stake in the natural gas business.

Mr. Samuel, also a fellow at Cleveland State University, says the industry springing up in our midst might do for Cleveland what oil drilling did for Houston in the last century — by serving as the chief driver of a burgeoning local economy.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

June 21, 201113 yr

Plant gets backing

State, local officials voice support of wastewater treatment

June 21, 2011

By MATTHEW STEFFY Tribune Chronicle , Tribune Chronicle | TribToday.com

WARREN - State lawmakers and local officials convened Monday morning at Patriot Water Treatment plant on Sferra Avenue to discuss permitting issues with the state Department of Natural Resources and Environmental Protection Agency.

Patriot owner Andrew Blocksom believes more than 400 jobs can be created in the Mahoning Valley, and the city could make as much as $500,000 annually - if the state changes its mind and renews the city's permit to treat wastewater created during Marcellus Shale natural gas exploration.

Currently, the plant employs 45 people at the Warren location. Blocksom had plans of expanding this year, but now his efforts are devoted toward maintaining operation in 2012 and further.

June 27, 201113 yr

OK, Youngstown-WARREN is the toolbox......

Valley can be heart of industries

June 17, 2011

Tribune Chronicle | TribToday.com

The rebirth of manufacturing in the Rust Belt continues to escalate, as does the Mahoning Valley's opportunity to be the epicenter.

The U.S. added 250,000 factory jobs since January of 2010. It's the first time since 1997 that the country has had a prolonged increase in manufacturing employment.

In the first quarter of this year, manufacturing output grew 9.1 percent, whereas the entire economy grew by 1.8 percent, according to Federal Reserve data.

One Ohio example includes Suarez Corp., which reopened a former Hoover vacuum plant in North Canton to produce appliances such as space heaters and air purifiers that previously were made in China. Another is Timken Co., which spent $4.2 million and plans to spend $50 million more next year on its Gambrinus Steel Plant in Canton, where 200 additional workers will be needed to meet demands associated with natural gas extraction. And still another is U.S. Steel, which invested $95 million and added 100 jobs in a Lorain plant to position it to help meet demands that arise from shale gas extraction.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

June 29, 201113 yr

Water contamination is concern in oil and gas drilling

Published: Wed, June 29, 2011 @ 12:00 a.m.

By Karl Henkel

[email protected]

COLUMBIANA

Water contamination seems to be the main opposition to oil and gas drilling throughout shale regions in Ohio and Pennsylvania.

Many Mahoning Valley residents, specifically in Columbiana County, signed leases with Oklahoma-based Chesapeake Energy Corp. in April. But until drilling picks up, landowners have been urged to take the necessary steps to ensure water remains safe to drink.

“You inevitably will have accidents or spills,” said Christopher Baronzzi, an attorney at the Youngstown law firm of Harrington, Hoppe & Mitchell Ltd., who spoke Tuesday to nearly 250 landowners at a seminar at Das Dutch Haus Village Inn on state Route 14. “If you have hundreds of thousands of gallons of chemicals spilled, there could be groundwater contamination.”

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

July 29, 201113 yr

Chesapeake Says Utica Leases Worth $20B

July 29, 2011 7:14 a.m.

YOUNGSTOWN, Ohio -- Chesapeake Energy Corp. announced Thursday the "discovery of a major new liquids-rich play in the Utica Shale," which is concentrated in Eastern Ohio, that could be worth as much as $20 billion.

"Having achieved successful results from recent drilling activities in eastern Ohio," Chesapeake, considered the nation's most active operator drilling for oil and natural gas, said it is increasing its drilling budget to $6.5 billion this year and is seeking a joint-venture partner to quickly capitalize on the deposits.

"Based on its proprietary geoscientific, petrophysical and engineering research during the past two years and the results of six horizontal and nine vertical wells it has drilled, Chesapeake believes that its industry-leading 1.25 million net leasehold acres in the Utica Shale play could be worth $15 billiion to $20 billion in increased value to the company," Chesapeake said.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

July 31, 201113 yr

Hello Ohioans!

Remembered this forum today after I'd been posting about this topic in the Midwest section of Skyscrapercity yesterday. Some of you know me already. ;)

Anyway, regarding the Utica shale ... forget about the natural gas. This thing contains oil!!!!

***** Oil boom about to hit Ohio *****

More info

In a presentation to the Ohio Oil and Gas Association in March, Larry Wickstrom, the state's geologist, estimated producers could recover as much as 15.7 trillion cubic feet of natural gas and 5.5 billion barrels of oil from Ohio's share of the Utica Shale.

That's a "very conservative estimation," said Mac Swinford, assistant chief of the Ohio Geologic Survey.

From Chesapeake Energy's latest conference call presentation:

THIS IS GONNA BE BIG FOR OHIO!

August 3, 201113 yr

Chesapeake Says Utica Leases Worth $20B

July 29, 2011 7:14 a.m.

YOUNGSTOWN, Ohio -- Chesapeake Energy Corp. announced Thursday the "discovery of a major new liquids-rich play in the Utica Shale," which is concentrated in Eastern Ohio, that could be worth as much as $20 billion.

"Having achieved successful results from recent drilling activities in eastern Ohio," Chesapeake, considered the nation's most active operator drilling for oil and natural gas, said it is increasing its drilling budget to $6.5 billion this year and is seeking a joint-venture partner to quickly capitalize on the deposits.

"Based on its proprietary geoscientific, petrophysical and engineering research during the past two years and the results of six horizontal and nine vertical wells it has drilled, Chesapeake believes that its industry-leading 1.25 million net leasehold acres in the Utica Shale play could be worth $15 billiion to $20 billion in increased value to the company," Chesapeake said.

Happy Meals and Shale Drilling Spinoffs

Aug. 3, 2011 7:14 a.m.

By George Nelson

LORDSTOWN, Ohio -- The owners of Ohio Commerce Park -- where ground was broken Tuesday for construction of the $28 million Anderson-Dubose warehouse that will serve McDonald's -- are exploring ways to capitalize on the rich Marcellus and Utica shale natural gas deposits in the region.

"We're in the process of looking at" different companies involved in shale activity," said Spiro Bakeris, co-owner of the industrial park. "Nothing's been signed or anything but we're examining that and looking at which options we want to go."

Gov. John Kasich alluded to the potential, highlighted by Chesapeake Energy Corp.'s announcement last week that the "discovery of a major new liquids-rich play in the Utica Shale," concentrated in eastern Ohio, that could add as much as $20 billion to the company's value.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

August 9, 201113 yr

Cross-posted from the What Other States Are Doing With Rail thread in the transportation section....

Marcellus Shale regions a target for rail, air hubs

BY ROBERT SWIFT (HARRISBURG BUREAU CHIEF)Published: August 8, 2011

HARRISBURG - Freight railroad lines and airports in the Marcellus Shale drilling regions would be targeted for improvements under recommendations made by two gubernatorial commissions.

The Governor's Marcellus Shale Advisory Commission and Transportation Funding Advisory Commission both addressed the issue in reports released within the past two weeks.

....The Marcellus commission recommends giving priority to an evaluation of rail freight systems in the Marcellus regions in order to relieve the burden on roads and bridges from transporting sand, water and pipe to serve gas well operations. Another suggestion is for the state to partner with local rail authorities to seek federal rail freight dollars for this effort.

To address these needs, the commission recommends creating an "Intermodal Transportation Fund" for rail freight, aviation, passenger rail and ports across the state. Revenue from an existing surcharge on tickets for moving vehicle violations that currently goes to the all-purpose state General Fund could be diverted to the new intermodal fund, the commission said.

If that happens, the report projects $7 million in new revenue for aviation in fiscal 2012-13 going up to $11 million in five years and $9 million for rail freight in fiscal 2012-13 going up to $17 million in five years. The entire fund would have $54 million in 2012-13.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

August 10, 201113 yr

Shale’s promise

Ohio stands to profit big from new drilling, but should do so wisely

Columbus Dispatch Editorial

Each new bit of good news about shale-gas prospects in Ohio makes the future look brighter.

Among the most convincing and concrete evidence is that the promise of a gas-drilling boom actually has breathed new life into Ohio’s steel industry, long written off as dead.

French steel giant Vallourec & Manesmann Holdings Inc. has shale drilling in mind as 400 workers labor to build a $650 million plant along the Mahoning River.

August 17, 201113 yr

I can't believe people are still talking about the Utica shale in terms of natural gas. Wake up folks, who cares about the gas? --- this has OIL!! Oil is going to produce, like, 10 times the economic benefits that gas will.

Wall Street Journal

AUGUST 16, 2011, 4:31 P.M. ET
Producers, Refiners Sniff Opportunity in Rust Belt Oil Shale

By RYAN DEZEMBER And BEN LEFEBVRE

HOUSTON—Moves by Chesapeake Energy Corp. and Devon Energy Corp. signal that eastern Ohio's newest oil-shale field is so rich that it could trigger a Rust Belt oil revival—and perhaps reverse the fortunes of the battered East Coast refining industry.

If the Utica Shale holds as much oil as some producers and analysts think it does, a new source of relatively cheap domestic oil could boost the razor-thin profit margins of local refineries that must now source oil tied to European benchmark Brent, which is trading at a premium to most crudes that come from the interior of the U.S.

Although some refiners are taking a wait-and-see attitude toward the Utica shale, Findlay, Ohio-based Marathon Petroleum Corp.'s Chief Executive Gary Heminger made no bones about the impact production would have in bringing crude oil directly to the company's refineries in Ohio and Kentucky.

"We will have a tremendous appetite if they can develop the [utica] crude source," Mr. Heminger said during a recent conference call with investors.

If producers have any estimates of how much oil the Utica holds, they are keeping them to themselves. But leasing activity and excited explorers portend a bonanza, analysts and executives say.

The Utica is a deeply buried rock formation that sprawls below parts of eight states from Tennessee to New York. But it is eastern Ohio where explorers believe the richest oil reserves lie and where, for the past year and a half, some have quietly amassed vast land holdings.

[...]

August 24, 201113 yr

Universal Completes Patriot Plant Purchase

Aug. 22, 2011 6:57 a.m.

BRIDGEVILLE, Pa. -- Universal Stainless & Alloy Products Inc. announced Friday the completion of its purchase of the assets of the Patriot Special Metals plant under construction in North Jackson, Ohio.

The company is paying $104.5 to buy the plant and investing an additional $25 million to complete the installation of equipment. In addition, Universal Stainless plans to spend $6 million to add an electro slag remelt furnace to the plant. The facility is scheduled to be fully operational in the first quarter of 2012.

...."Of note also, Universal is looking at getting into producing product that will be used in Marcellus and Utica shale exploration, an industry segment where the Youngstown/Warren area is a force," Good said.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

August 24, 201113 yr

Looks like all is not well in the Marcellus Shale World.

http://www.businessinsider.com/wow-us-slashes-marcellus-shale-gas-estimate-by-80-2011-8

WOW: U.S. Slashes Marcellus Shale Gas Estimate By 80%

The U.S. will slash its Marcellus Shale reserve estimate to 84 trillion cubic feet of gas from the earlier estimates of 410 trillion, according to Bloomberg.

Geologists from the U.S. Geological Survey provided the new number, which supersedes estimates from the Energy Information Administration. The EIA does not contest the new number: "They’re geologists, we’re not. We’re going to be taking this number and using it in our model,” an EIA analyst told Bloomberg.

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