Seth Blumsack, Ph.D. Associate Professor of Energy Economics and Policy John and Willie Leone Family Department of Energy and Mineral Engineering,

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1 Seth Blumsack, Ph.D. Associate Professor of Energy Economics and Policy John and Willie Leone Family Department of Energy and Mineral Engineering, Pennsylvania State University PIOGA s 2014 Eastern Oil and Gas Annual Conference May 13, 2014

2 Energy Land Management at Penn State In August 2013 Penn State opened an AAPL certified program in Energy Land Management (ELM). Penn State has the first Energy Land Management program open for students in the Eastern United States. Our goal is to create a high quality course of study to train young people to enter the land business in Appalachia, Because of the Penn State strengths that we are building on, we believe we are in a unique position to do so. We now have 16 students, and will produce our first graduates in May

3 Our Strengths The world s only undergraduate program in Energy Business and Finance (EBF); A home in an innovative interdisciplinary department (Energy and Mineral Engineering) that gives us access to some of the world s best petroleum/natural gas engineers Courses from nationally and globally ranked programs in Geography; Geosciences; and Petroleum/Natural Gas Engineering; Energy and Property Law classes using the leading land lawyers in Pennsylvania; Cutting edge research in the Marcellus play; You 3

4 Energy and Mineral Engineering 4

5 The Major in Energy Business and Finance ELM is part of the unique and highly successful EBF major, established in Penn State s College of Earth and Mineral Sciences 2004 with the support of the Smeal College of Business. At around 400 students it is the once and future largest program in the College. 5

6 Structure of the EBF Major Core Requirements 1. Quantitative (Calculus, Statistics, Programming) 2. Business (Accounting, Insurance, Business Law, International Business) 3. Economics (Micro/Macro, Oil/Gas Economics, Electricity Markets) 4. Finance (Commodity Markets, Corporate Finance, Risk Management, Derivatives) Options General Option Energy Land Management Option Energy Systems Option 6

7 The Energy Land Management Option The Penn State Energy Land Management Program exists as an option in the EBF major. ELM students take a series of specialized courses designed for them. 7

8 Geographic Information Sciences GIS is crucial to success in the land business in Appalachia. Unlike the other parts of the US, landholdings in this part of the country are not laid out in nice rows! We have partnered with our our world-ranked Geography Department to create a three course GIS sequence. 8

9 Our GIS Sequence Mapping Our Changing World: Fundamental concepts of GIS, cartography, remote sensing, and GPS in the context of environmental and social problems. Geographic Information Systems: Principles and use of geographic information; emphasis is on data acquisition and techniques for computer-aided analysis. They then take one course out of: Cartography--Maps and Map Construction Image Analysis Spatial Analysis ; or Geospatial Information Management 9

10 Energy Land Law With the help of a committee of energy lawyers, we taught our first Energy Land Law class this spring, focusing on Pennsylvania s unique legal environment. We had guest lectures from the leading land attorneys in the state. We are now moving to create a second class, dividing the curriculum into property and leasing. We will also cover other topics such as ethics, negotiations, and division orders 10

11 Petroleum and Natural Gas Engineering; Petroleum Geology We currently use the standard class for PNG Engineering and Petroleum/Natural Gas Geology. Working with our colleagues in Geosciences and Petroleum and Natural Gas Engineering, we are building our curriculum to create specialized courses for land professionals in these fields. These courses will focus on the special issues that are presented by unconventional plays. 11

12 Cutting Edge Research Penn State is one of the few Universities that takes the study of energy markets seriously. This is reflected in the research of the EBF faculty. Our research is embedded in our classes and will translate into innovative learning opportunities for ELM students. Current topics related to the Marcellus play include: The impact of pipelines on natural gas markets; The effects of LNG liquefaction plants in the U.S; The law and economics of land court rulings; Natural gas utilization; Water sourcing and management 12

13 What we really need is You! We have created a strong Advisory Board with members from leading land and production companies. But we need help from all of you! We need: Internships; Jobs; Guest lecturers; Suggestions for course material. 13

14 We need your financial help! Like all other major public universities today, Penn State is in the midst of a perpetual budget crisis. As much as the Department and College support the ELM program we need to look outward to build enhancements into the program. Support is needed for: Course development and instruction Student scholarships Administrative expenses as it grows, the option will require new support staff Travel expenses for students and faculty. 14

15 The Opportunities The goal is simple: Create the absolute best ELM program possible. We have so much to build on several superb Penn State academic programs. We have made a good start, and soon we will have some very bright young people ready to work in your firms. But we will need your support in many ways to reach our potential. 15

16 Thank You! Seth Blumsack Andrew Kleit, program chair for Energy Land Management and Energy Business and Finance 16