Connecting Oil & Gas Career Opportunities with WV Students

Transcription

1 Connecting Oil & Gas Career Opportunities with WV Students October 21, 2013 Charleston, WV Marriott R. Dennis Xander

2 Campaign: sponsored by the Just Beneath the Surface Alliance Purpose: provide the public with facts, clarify false information and offer an in-depth look into the natural gas industry Goal: source of information and two-way communication on the subjects of economic benefits, environmental standards and regulations, safety and the future of energy in W.Va.

3 Just Beneath The Surface American Petroleum Institute Charleston Regional Chamber of Commerce Chemical Alliance Zone Community and Technical College System of W.Va. Contractors Association of W.Va. Energy In Depth HOPE Community Development Corporation Independent Oil & Gas Association of W.Va. Independent Petroleum Association of America Institute for 21st Century Energy Mountaineer Energy Forum Polymer Alliance Zone Utilities, Telecommunications & Energy Coalition of W.Va.(UTEC) West Virginia Business & Industry Council West Virginia Chamber of Commerce West Virginia Department of Education & the Arts West Virginia Manufacturers Association

4 West Virginia Petroleum Council West Virginia Roundtable West Virginia Small Public Utilities Association WorkForce W.Va. WV Economic Development Council & 13 regional Economic Development Authorities: Gilmer County Economic Development Association Hardy County Development Authority Lewis County Economic Development Authority Little Kanawha Area Development Corporation Logan County Development Authority Preston County Economic Development Authority Putnam County Development Authority Ritchie County Economic Development Authority Roane County Economic Development Authority Tucker County Development Authority Tyler County Development Authority Upper Kanawha Valley Economic Development Council Upshur County Development Authority

5 Why is this relevant? Teachers need to have accurate information to properly educate our students. For too long, our young people have been forced to leave the state to find GOOD jobs. Opportunity is here now, but only if we prepare our students! Full employment is good for ALL sectors. A rising tide floats all boats.

6 Oil and gas make it possible for 30,000 W.Va. jobs in a variety of industries direct and indirect Production in W. Va. has more than doubled since January, 2012! Daily production from W. Va. now exceeds one billion cubic feet per day (over $3.5 MILLION per day!) Shale drilling could account for nearly 20,000 jobs by 2015 if activities grow at a rate of 20 percent Nearly one-half of W.Va. households use natural gas as the main source of energy

7 53 W.Va. counties have oil or natural gas operations All 55 counties benefit from state severance taxes paid by the industry More than $500 million in severance and property taxes has been paid in the last three years Natural gas state severance taxes are expected to exceed total $118 million in 2016 Marshall County s tax base has doubled in six years.

8 Better Education for West Virginians! About 70% of W.Va. s Oil & Gas Taxes go to EDUCATION!

9 ~ Marcellus Shale ~ What is it? Where is it?

10 Overview of Current US Shale Plays

11 Marcellus Shale

12 Marcellus Shale in West Virginia

13 Utica Shale Source: Geology.com

14 The U.S. has more than 300 trillion cubic feet of potential natural gas resources one of the largest reserves in the world At current consumption rates that is enough for 100 years Marcellus shale play could be the second largest natural gas field in the world (Source: Penn State University) The US has now surpassed Saudi Arabia as the world s largest oil producer!

15 Every job created in the shale gas sector adds three more, representing one of the larger employment multipliers in the U.S. Average pay - $23.16 per hour - compared to an average of $13.10 to $22 per hour for similar industries Low domestic natural gas prices have led to savings of almost $250 billion for natural gas customers over the past three years Residential rates in W. Va. have declined 45% over the last three years.

16 But is it SAFE?

17 At least three strings of steel casing set at strategic loca6ons to protect water strata. All casing strings are cemented in place. If the casing OR the cement failed, the well could not be fractured.

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19 Displacement of Cement Through Casing Surface Water Hole Casing Cement

20 Cemen6ng Casing

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22 Horizontal Drilling Horizontal drilling allows access to areas that are culturally or environmentally sensitive Horizontal drilling requires a fraction of the number of required well sites required by vertical drilling (to drain same geographic region) Multiple horizontal wells can be drilled from a single site one road, one pipeline can serve multiple wells Production of previously untapped resources keeps utility costs low

23 Ver6cal Drilling Schematic Only Not to scale~

24 Horizontal Drilling +/- 5,000 10,000 N of horizontal drilling length Schematic Only Not to scale~

25 2013 Horizontal Marcellus Development Plan

26 Horizontal Drilling: Is it an effec6ve use of surface lands? Hz Vert Drainage Area (Acres) 1,100 1,100 Well Pads 1 55 Acres/Pad 5 1 Disturbed Acreage 5 55 Pipelines 1 55 Roads 1 55

27 The process of using water pressure to stimulate oil and gas wells to dramatically increase well production. NOT New! First commercially employed in % of the fracturing mixture is water and sand There has never been a documented instance of water contamination caused by hydraulic fracturing

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29 NO PROOF THAT FRACTURING HAS EVER CAUSED GROUND Marcellus WATER Horizontal CONTAMINATION! Well Site A#er a million experiments across the country, I ve yet to see a single impact of fracking actually directly communica;ng with freshwater resources. Again and again and again, I never see a single incidence of fracking causing this direct communica;on that we keep hearing about ScoA Perry Director of the Pennsylvania Department of Environmental Protec;on s Bureau of Oil and Gas Management "I'm not aware of any proven case where the fracking process itself has affected water." - Lisa Jackson, former EPA Administrator May 25, 2011

30 Marcellus Horizontal Well Site

31 How Much Water is Being Used?? Marcellus Horizontal Well Site Susan Obleski, with the Susquehanna River Basin Commission says: The Susquehanna River provides the Chesapeake Bay with 18 million gallons of fresh water every minute, and there are 1,440 minutes in a day. The SRBC es6mates that if the natural gas industry was at its peak, with all the companies ac6ve, they would use up two minutes' worth of water that day.

32 Horizontal Well Act NOTICE Direct Notice to Surface Owners Direct Notice to Coal Owners Newspaper Publication No permit can be issued without proof of notice!

33 Marcellus Horizontal Well Site

34 Reclaimed Marcellus Horizontal Well Site

35 During Drilling ANer Reclama6on

36 But Oil & Gas is just the tip of a MUCH BIGGER economic iceberg!

37 Natural Gas: So much more than a source of heat! Residential Heating 20% Commercial Heating 15% Electric Generation 35% Manufacturing Raw Materials 30% Burning ethane for heat is like grinding filet mignon into hamburger. Kevin D. Gregorio, PhD., Director: Polymer Alliance Zone.

38 A Triple Play!! 1. Direct and indirect jobs related to shale well drilling. 2. Cracking will create jobs in West Virginia s once vibrant chemical industry. 3. New manufacturing jobs in WV.

39 This is all about CAREER OPPORTUNITIES And how we prepare our students!~

40 Marcellus shale development makes it possible for tens of thousands of West Virginians to work There are hundreds of jobs within the industry and we are always looking for qualified West Virginians to help fill them Many jobs are performed off-site to support the drilling process Well-paying careers are available at many education levels

41 All require a high school diploma or equivalent Some positions require two- or four-year degrees Others require a safe driving record and/or CDL Being drug-free is a must Visit: EnergySpeaksWV.com for an entire listing of jobs and qualifications

42 Potential Jobs Related to Natural Gas Construc6on Industry Drilling Industry Chemical Industry Trucking Industry Hospitality Industry Steel Industry

43 Direct JOBS! A lot of our members are working in the Marcellus Shale industry. Water and sewer contractors are putting in lines, highway contractors are putting in roads, aggregate suppliers are supplying stone to these projects. We are seeing a pretty good market for our membership that are now working in the oil and gas industry that were not involved in this process five years ago. As such, our members have been able to stay pretty busy. * Charleston Daily Mail Editorial, August 8, Mike Clowser, Executive Director of the Contractors Assoc. of WV

44 Salary Comparison WV Median Household Income ( ) $38,380 WV Average Oil & Gas Wage 2008 $63,324

45 Mechanics Indirect Jobs Equipment sales and service (dozers, backhoes, tractors) Truck and car sales and service Restaurants Hotels Convenience Stores Residential construction

46 What is the upside of an oilfield job? Salary and wages are far above state averages. Most companies offer great benefits (401-K, insurance, etc.) Growth and demand for more employees insure some degree of upward mobility and advancement.

47 What is the downside? Drug tests are required, before and during employment. Expect long hours. Most oilfield jobs are NOT 8 to 5, Monday thru Friday. Be prepared to relocate. Activity changes. Jobs move.

48 To meet these challenges we need to: Explain to the public what we do, and why it is safe and beneficial to W. Va. Make Teachers Aware Work with Teachers to design courses that will ensure a competent future workforce of West Virginians!

49 What can we expect in the FUTURE? There are jobs in today s oil and gas industry that did not exist 10 years ago! There will be jobs in tomorrow s oil and gas industry that do not exist today!

50 Tom Dunn Energy Leadership Academy 33 students from all across the state attended the Academy for the first time July 9-11, 2013 Participants engaged in: Leadership Workshops Industry seminars IOGA WV Oil & Gas Equipment Show Pipeline tours Construction tours More information about the Academy and applications for the 2014 class are available at tomdunnacademy.org

51 EnergySpeaksWV.com Like us on Facebook Just Beneath the Surface Follow us Become a member of the Alliance today to receive additional information

52 What is this stuff, anyway?!? Marcellus Horizontal Well Site

53 Marcellus Horizontal Well Site Deodorant

54 What is this stuff, anyway?!? Marcellus Horizontal Well Site

55 Marcellus Horizontal Well Site Hand Lotion

56 What is this stuff, anyway?!? Marcellus Horizontal Well Site

57 Marcellus Horizontal Well Site Hand Lotion

58 What is this stuff, anyway?!? Marcellus Horizontal Well Site

59 Marcellus Horizontal Well Site Chemicals in Frac Water 99.51% Plain Water 0.49% Chemicals

60 EnergySpeaksWV.com Like us on Facebook Just Beneath the Surface Follow us Become a member of the Alliance today to receive additional information